Facing the prospect of cancellation of its Rs 3,600 crore deal to supply 12 VVIP choppers to the IAF, AgustaWestland has sought a meeting with the defence ministry to explain its stand on the issue.
The request from the Anglo-Italian firm has come soon after the defence ministry issued a final show cause notice on cancellation of its contract for "violating" its terms and gave it 21 days to reply to it.
AgustaWestland has sought a meeting with the defence ministry on the issue and more time to reply to the notice, government sources said in New Delhi.
They said the defence ministry has not yet decided on the issue and is expected to take a call soon.
Defence Minister A K Antony has stated that the firm has violated the contract and government has initiated a process in this regard.
The defence ministry had issued the final show cause notice to AgustaWestland on October 21 asking it to explain why "all or any action as prescribed, including cancellation of the contract, should not be taken against them for violating the terms of the pre-integrity pact and the contract for procurement of 12 VVIP choppers".
The government has already frozen the contract for supply of 12 AW-101 VVIP choppers to the IAF after allegations that Rs 360 crore were paid as bribe in the case in which two top officials of the company were accused.
IAF has already received three helicopters and delivery of the rest has been put on hold
The defence ministry first issued a show cause notice to AgustaWestland on February 15 asking it to explain within seven days the bribery allegations against it after the alleged scam was exposed in February.
In its reply, AgustaWestland had denied the allegations. Former IAF chief S P Tyagi is among those under cloud in connection with the kickback charges.