NEW DELHI: Turning the heat further on AgustaWestland in the VVIP helicopter bribery case after the UK-based company last week moved for arbitration, the defence ministry is now moving towards cancelling the Rs 3,546-crore contract.Sources on Monday said the MoD had "initiated the cancellation process'' after receiving the opinion of the law ministry and the attorney general that there was "a clear violation of the integrity pact and contractual obligations'' by AgustaWestland, the UK-based subsidiary of Italian conglomerate Finmeccanica.The law ministry has also made it clear to MoD that it could invoke the integrity pact ¡ª inked by the helicopter-manufacturer along with the main contract in February 2010 ¡ª to scrap the deal. Both the contract and integrity pact contain specific provisions by which "strict action including the cancellation of contract, recovery of payment, blacklisting and penal action'' can be unleashed against the vendor, said sources.It was on February 15 that the MoD had first issued a show-cause notice to AgustaWestland to seek an explanation why action should not be initiated to cancel the contract and begin penal proceedings. It had also frozen all further payments to the company despite having inducted only three of the 12 AW-101 helicopters, with around 45% of the total contract value already been paid.Since then, the MoD has also directed the helicopter-manufacturer to provide specific details of the "payments'' made to companies based in Tunisia,Probably the most popular among foodies,Button Mushroom Distributors
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