Bank guarantees: India to challenge Italian court orderhttps://indianexpress.com/article/india/india-others/bank-guarantees-india-to-challenge-italian-court-order/

Bank guarantees: India to challenge Italian court order

A setback of sorts came for India after a Milan court accepted the position of the Italian company that India be barred from encashing the guarantees.

India has said it will appeal against a ruling by an Italian court that has barred the encashing of bank guarantees worth over Rs 2,300 crore in the AgustaWestland VVIP chopper deal as part of its action against the firm for indulging in corrupt practices to bag the contract.

A setback of sorts came for India after a Milan court accepted the position of the Italian company that India be barred from encashing the guarantees. India has already encashed gurantees of over Rs 240 crore that had been deposited in India but the bulk of Rs 2,300 crore that was deposited in Italian banks is yet to be recovered.

In a statement, the AgustaWestland group has said the Italian court has recognised the “manifestly abusive enforcement of the guarantees” by the Indian government, given the “vagueness of the complaints made in relation made to alleged breaches of contract”.

On its part, the Ministry of Defence has said. “The Government of India will be filing an appeal against the order of the Italian court in Milan in the case relating to encashment of bank guarantees. Simultaneously, the government will vigorously pursue all options for encashment of the bank guarantees.”