IDS Infotech has Satish Bagrodia, a former president of the PHD Chamber of Commerce (PHDCC) as chairman. His son, Manish Bagrodia, is also a director at IDS Infotech.
Bagrodia's office told media Friday that he had nothing to do with the controversy since IDS Infotech was managed by Pratap Aggarwal. Efforts to reach Pratap Aggarwal failed.
The defence ministry Friday said it had "initiated action for cancellation of contract for procurement of 12 AW101 helicopters for the use of VVIPs".
It also issued a formal show cause notice to AgustaWestland, a subsidiary of Finmeccanica, seeking cancellation of contract and "taking other actions as per the terms of the contract and the Integrity Pact". The company has been given seven days to reply.