This Article is From Feb 13, 2013

'I am innocent': former Air Force Chief SP Tyagi on VVIP helicopter deal

New Delhi: SP Tyagi, the former chief of the Indian Air Force, has denied allegations that he influenced a 4,000-crore deal for VVIP helicopters in favour of Italy's AgustaWestland.  The CBI is now investigating the agreement to determine if kickbacks were paid by the firm to Indian officials.  "The faster, the better," Mr Tyagi said to NDTV about the inquiry that was ordered yesterday by the Defence Ministry. (Watch what Mr Tyagi told NDTV)

He pointed out that India signed the deal for 12 executive helicopters in 2010, three years after he retired. Mr Tyagi agreed that in 2010 he met an Italian named Carlo Gerosa who allegedly served as a middleman for AgustaWestland at his cousins' house.   "I met Carlo in my cousin's place but I have no contact with him," he said.

Mr Tyagi and three brothers who are his cousins have allegedly been named by Italian prosecutors who yesterday arrested Giuseppe Orsi, the head of AgustaWestland's parent company, Finmeccanica. (Foreign media on VVIP chopper controversy)

The Italian enquiry states that Juli, Docsa and Sandeep Tyagi were used to pressure Indian officials to doctor the tender terms to favour AgustaWestland. The former air force chief told NDTV that his cousins have told him that "They knew the Italians and had some business connections with them...there were dealings for 15-20 years largely in the power sector.. but had nothing to do with this deal."

He also said that the alterations to the tender which helped AgustaWestland were not made during his tenure.

In 2003, the required altitudes at which helicopters could operate was dropped from 18,000 to 15,000 feet, making AgustaWestland eligible. India has said that without this change, only one vendor would have been eligible for the deal.  (Can get money back at any stage: Defence Minister on VVIP chopper deal)

The Italian inquiry also states that tender terms were also changed to introduce an engine failure flying test. This favoured AgustaWestland as its helicopters were the only ones in the tender operating with three engines.
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