Agusta guarantees: Defence Min to take steps to recover amount

After the Rs 3,600 crore deal was cancelled on January 1 this year, India had initiated the process to seize bank guarantees deposited in banks in Italy and India.

While the money deposited in Indian banks was encashed, the Italian court had stayed the process of seizure in that country.

India has been working on procedures to claim more than 650 million Euros (about Rs 5,470 crore) from the company in the form of seizure of bank guarantees and imposing penalties.

India scrapped the contract on January 1 over allegations of bribery and payment of kickbacks in the contract worth Rs 3,600 crore for supplying 12 AW-101 choppers.

The Defence Ministry had also initiated the process to blacklist the firm but the Solicitor General advised it to "wait" before taking any action in this regard in view of the ongoing probes in the case in both India and Italy.