The inquiry was ordered by Defence Minister A K Antony to expand on the earlier report by the Indian Embassy in Rome following allegations on the role of the consultant hired by Finmeccanica to facilitate the Rs 3,546-crore deal with India. Finmeccanica is the parent company of AgustaWestland.
The first batch of the AW-101 choppers is expected to be delivered to India by the end of this year.
"Defence Minister A K Antony today directed his ministry officials to get a fresh report from the Indian Embassy in Rome following a media report alleging malpractices in the procurement of 12 helicopters for the VVIP Communication Squadrons of IAF from AgustaWestland," the Defence Ministry said in a statement.
Any such complaint or allegation received will be investigated and the contractual provisions will be invoked, in case if any wrong doing is established, in addition to action that may be required under law, the statement said.
In February, the Indian Embassy in Rome was asked by the government to file a report on the status of investigation being carried out by Italy against the alleged malpractice by Finmeccanica.
The Indian Embassy in Rome in its initial reply stated that the investigators there had yet not proposed to look into the Indian chopper deal by the company, official sources said.
Rejecting the allegation, AgustaWestland said it has not paid commissions or engaged in irregular conduct of any kind and noted that this has been confirmed by the Defence Ministry here.
"Neither AgustaWestland nor Finmeccanica has paid bribes of any kind. AgustaWestland has not engaged in irregular conduct of any kind, and has not paid commissions of any kind for the sale of AW-101 helicopters to the Indian government. This was confirmed by a recent investigation by the Indian Defence Ministry," the company said in a statement.