Audit report on VVIP chopper deal soon: CAG

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New Delhi, Feb. 16 : The Comptroller and Auditor General of India, Vinod Rai, has said that his organisation is in the process of assessing the Italian helicopters deal and would come out with a report soon.

"The Comptroller and Auditor General takes up audit of the Defence Ministry and has done audit for this case (AgustaWestland deal) as well. Its reports will be out soon and before your attention," he said, while addressing at an event here yesterday.

The Ministry of Defence has initiated action for the cancellation of contract for procurement of 12 AW101 helicopters for the use of VVIPs.

The MoD yesterday issued a formal show cause notice to the AgustaWestland of UK seeking cancellation of contract and taking other actions as per the terms of the contract and the Integrity Pact.

MoD had already put on hold further payments to the company on Wednesday.

With the 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.

Defence Minister A.K. Antony had earlier on Wednesday said that strong action will be taken against those found guilty.

"Nobody will be spared whatever may be the consequences," he said.

The name of former Air Chief S P Tyagi has reportedly figured in the alleged scam, but he has stoutly refuted the bribery charge against him.

The copter scam has unfolded with the arrest of the head of a state-controlled Italian aerospace company.

Finmeccanica CEO Giuseppe Orsi, who was arrested on Tuesday in Rome, had been under investigation for months and had denied any wrongdoing in the deal for the sale of 12 Augusta Westland helicopters to India in 2010.

The company is suspected of paying bribes of about Rs 362 crore in India to get orders for helicopters to ferry Indian VVIPs, prompting the government to order a CBI probe.

--ANI

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