Facing the threat of cancellation of its Rs 3600-crore deal for VVIP choppers, AgustaWestland has asked the government to release its payments saying withholding it was a 'breach of contract'.
In a letter written to the ministries of defence, finance and external affairs, the Anglo-Italian firm has said that there were certain 'contractual difficulties' with the defence ministry and asked for its payments to be released.
India has paid around 30 per cent of payments and withheld the remaining after the Italian investigators arrested former CEOs of Finmeccanica and Agusta for allegedly paying Rs 362 crore kickbacks to swing the deal in its favour.
The firm has said that till proven guilty, no one can be held guilty and investigations were still on in both the countries in the case.
The CBI has registered a case into the kickback allegations and has questioned former Indian Air Force chief S P Tyagi and his three cousins in the case.