The payments to AgustaWestland for supplying 12 AW-101 choppers have been stopped but so far no decision has been take to blacklist the firm, Rajya Sabha was informed on Wednesday.
"A show cause notice has been sent to AgustaWestland asking them to explain as to why steps should not be initiated for contract cancellation. The contract has been put on hold and further payments have been stopped. No decision to blacklist the company has so far been taken," Defence Minister A K Antony said.
He was replying to a written query on the VVIP choppers which have been procured for Rs 3,600 crore.
The ministry said further details of the investigations would be known only after the receipt of the CBI report into the matter.
Antony said his ministry took prompt action to seek factual information from the concerned authorities soon after reports about alleged wrongdoings came up.
He said the British government is also waiting for the report of Italian investigations before taking any action into the kickback allegations.
Meanwhile, answering another query, the defence minister said the procurement proposal for 197 light utility helicopters was under progress and "is due for consideration of the Defence Acquisition Council."
He asserted that the procurement procedure has been conducted in accordance with the Defence Procurement Procedure and "no formal inquiry has been instituted in the procurement case."