The deal, finalised between AgustaWestland’s parent company Leonardo (formerly Finmeccanica) and Adani Defence, is expected to be formally announced on Tuesday, according to the Adani Group.
Background of the AgustaWestland Scam
The original AgustaWestland VVIP helicopter deal, signed in 2010 during the Congress-led UPA government, involved the purchase of 12 AW-101 helicopters at a cost of ₹3,600 crore. Investigations later revealed allegations that around ₹423 crore in bribes had been paid to Indian Air Force officials and intermediaries. The deal was subsequently cancelled by India in 2014, and the company was blacklisted.
Italian investigative agencies began probing the bribery allegations in 2013, which led to a CBI investigation in India. Air Chief Marshal SP Tyagi and others were even jailed during the probe. Despite these allegations, an Italian court and India’s Ministry of Defence gave AgustaWestland a clean chit in November 2021, citing insufficient evidence.
Legal Developments
Following the clean chit, the Delhi High Court quashed the Ministry of Defence’s ban on Indian company Defsys Private Limited, which was associated with the case. On January 6, 2026, the Supreme Court dismissed the Centre’s petition challenging this order, observing that extending the ban without fresh evidence was inappropriate. The same day, the Court also rejected a petition from Gautam Khetan, an accused in the scam, calling attempts to evade trial through legal challenges a “troubling trend among wealthy defendants.”
Strategic Need for Helicopters
The Indian Army requires helicopters for critical operations, including supply delivery in high-altitude regions such as Siachen. The Ministry of Defence has approved the procurement of 120 helicopters for the Army and 80 for the Air Force. Although three helicopters from the original deal were delivered in 2014, they were stored due to ongoing legal proceedings.
With the AgustaWestland-Adani collaboration, India aims to modernize its fleet and ensure rapid operational readiness in challenging terrains. The deal also underscores renewed confidence in international defence partnerships after the closure of long-pending legal cases.
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