An Italian court has rejected India's request to recover nearly 300 million euros in bank guarantees over a cancelled helicopter deal with defence group Finmeccanica.
The court ruled that it had no jurisdiction over the money deposited as security, which it said had already been paid out by the State Bank of India (SBI) and Deutsche Bank.
Announcing the move, Finmeccanica said in a statement, "The Milan court has confirmed the ruling made last January, prohibiting... the payment of collateral of more than 278 million euros deposited in relation to the contract."
The Government of India on Wednesday cancelled the Rs 3600 crore AgustaWestland VVIP helicopter deal that hit a block earlier this year following the arrest of the Italian firm Finmeccanica's former chief for allegedly paying bribes to secure the deal.
The deal involved the purchase of twelve AW101 helicopters for transporting top politicians across the country.
But, the arrest of the then-CEO of Finmeccanica prompted India to freeze payments. Before the deal stalled, India had already taken delivery of three helicopters.
Anglo-Italian firm AgustaWestland has sent a delegation to India to convince the government to complete the proposed Rs 3,600-crore VVIP helicopters deal.
The six-member delegation will make a detailed presentation before Indian government's ministry of defence on Wednesday, November 20, in a last bid to save the frozen deal.
A senior official from the ministry said, "Before replying to defence ministry's final show cause notice, they wanted to have a meeting with the ministry official."