India to cancel Finmeccanica helicopters deal
The Ministry of Defence issued a formal show cause notice to the AgustaWestland seeking cancellation of contract and taking other actions regarding the terms of the contract and the Integrity Pact. The ministry had already put on hold further payments to the company on Wednesday and with today’s show cause notice, the operation of the contract has been put on hold. The company has been asked to reply to the notice in seven days.
The request for the cancelation comes after Italian police arrested the head of Finmeccanica, Giuseppe Orsi, who formally resigned on Friday. ■