Defence Minister A.K. Antony Wednesday said AgustaWestland "violated the contract" for supplying 12 VVIP choppers to the Indian Air Force (IAF) and the government has to move as per the law.
"We have to move as per law. They have violated the contract ... we have to take steps to protect our interests ... we have given them 21 days to reply to it," said Antony on the sidelines of an event at the Institute of Defence Studies and Analyses (IDSA) here.
On Oct 21, the defence ministry had issued a final showcause notice to AgustaWestland, seeking to cancel the deal to buy 12 helicopters and given the company 21 days to reply.
The company was asked to explain why action should not be taken against it for violating the terms of the pre-contract integrity pact.
In February, the government froze payments on the $771.32-million contract following allegations that Rs.360 crore was paid in bribes.
AgustaWestland has denied the allegations.
