Chopper deal: India to recover bank guarantee of Rs 2,134 cr

India has to recover bank guarantee worth Rs 2,134 crore deposited in Italian banks after scrapping the AgustaWestland VVIP chopper deal in which allegations of corruption against then Indian Air Force (IAF) chief S P Tyagi and others are being probed by the Central Bureau Of Investigation (CBI). In an RTI reply, IAF said euro 83,439,303 (15 per cent of the contract value) and euro 166,878,607 as (30 per cent of contract value) totalling to about Rs 2,134 crore (according to the current exchange rates) were deposited as bank guarantee by the company in Deutsche Bank, Milan, Italy.

The reply said Rs 3 crore was deposited in the State Bank of India, Parliament Street Branch as Integrity Pact Bank Guarantee. The advance payment made to AgustaWestland comes to about Rs 1,493 crore (according to the current exchange rates) of the total Rs 3,600-crore deal. The defence ministry has received the money which was deposited in SBI here in the form of a guarantee.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel