The Comptroller and Auditor General of India (CAG) report on the alleged scam related to the AgustaWestland chopper deal was tabled in Parliament on Tuesday.
According to the CAG's findings, the government had failed to follow prescribed defence procurement policy rules in connection with the Rs.3, 600 crore purchase of 12 VVIP Augusta Westland choppers.
Italian firm Finmeccanica is also in the docks over its role in making alleged lobbying pay-offs to secure the deal.
The Comptroller and Auditor General's report has claimed that there were several instances where the ministry had deviated from the provisions of the DPP (Defence Procurement Policy) and RFP (Request For Proposals) issued in September 2006.
India and Italy are both investigating the 2010 deal to supply AW101 helicopters, in which AgustaWestland has been accused of paying bribes to win the contract from the defence ministry.