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The Defence Ministry had said yesterday that the

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Press Trust of India
Last Updated : Feb 15 2013 | 6:00 PM IST
government is determined to take all possible legal and administrative action against the guilty parties and accordingly has ordered a thorough probe by CBI. It noted that the contract with AgustaWestland carried an integrity pact that bars paying of bribes or involvement of middlemen, the Ministry warned of "strict action including cancellation of contract, recovery of payment, blacklisting and penal action can be taken against the vendors." The Ministry said the contract signed with AgustaWestland includes "specific contractual provisions against bribery and the use of undue influence. Article 22 of the contract deals with penalty for use of undue influence. This clause entitles the �Buyer� to cancel the contract with the �Seller� and recover from him the amount of any loss arising from such cancellation." "Article 23 of the contract entitles the �Buyer� to consider cancellation of the contract without any entitlement or compensation to the �Seller� who shall be liable to refund all payments made by the �Buyer� in terms of the contract along with interest," it said. The Ministry said any breach of the provisions of the Integrity Pact entitles the �Buyer� to take actions against the �Seller� which includes forfeiture of the earnest money, performance bond, cancellation of the contract without giving any compensation, to recover all the sums already paid with interest, to cancel any other contracts. It also says debars the bidder from entering into any bid from the Government for a minimum period of five years which may be extended.

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First Published: Feb 15 2013 | 6:00 PM IST

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