A probe by Italian prosecutors into allegations of corruption against state-backed defence major Finmeccanica has cast a shadow over a multi-million dollar deal that the company signed with India for 12 VVIP helicopters.

The Italian attorney general's office began a probe last year into alleged unethical dealings by the company, which has now widened to include the Rs 3,546-crore contract with India, reports from Italy say. Finmeccanica subsidiary Augusta Westland signed the deal with the Indian Air Force in 2010.

La Repubblica reported that the deal is being investigated, and that a senior company official, Lorenzo Borgogni, has told prosecutors that slush funds were generated after a "sudden" escalation of price by 10 million euros in 2010.

While it is not clear whether kickbacks were paid in India, the money was allegedly used by a top Finmeccanica official to bribe Italian political parties.

Augusta Westland is one of Finmeccanica's most profitable subsidiaries. Another subsidiary, Selex Sistemi Integrati, which is also under investigation, recently won a 10 million-euro contract to supply radars and other equipment for India's first indigenous aircraft carrier under construction in Kochi.

Augusta Westland won the contract for the choppers — to be used by the President, Prime Minister and other top government functionaries — after its AW 101 edged out Sikorsky's S-92 Superhawk.

CBI team which reached Italy today to probe role of Indians in the alleged Rs 3,600 crore VVIP helicopter deal scam met its lawyer and described the meeting as "useful".

High level sources in CBI said the team had a meeting with the lawyer engaged by the agency to represent India's case with the Italian government and the local courts to find out the role of Indians in the alleged Rs 3,600-crore VVIP helicopter deal scam in which Giuseppe Orsi, the chairman of Italian air defense group Finmeccanica, was arrested there.

It was a "useful" meeting, they said.

The sources said the assistance of a lawyer has been taken to understand the Italian law and how quickly the documents from the helicopter supplying company could be taken.

The lawyer, if necessary, would be approaching the court in Italy for procurement of documents, they said.

The team comprises a CBI DIG, a law officer of the agency, a Joint Secretary level officer of Defence Ministry and an official of the External Affairs Ministry.

CBI had sought help of Indian Mission in Rome which too has not been able to provide any authenticated court documents to the agency, the sources said.

This was followed by CBI seeking help of Interpol which also expressed inability to provide any help in the absence of any regular case not having been registered by the agency, they said.

The CBI's decision to send a team to Italy came after it virtually drew a blank from the Defence Ministry in getting some official inputs regarding alleged kickbacks of Rs 362 crore in the case.

The CBI was handed over a letter from the Defence Ministry seeking a probe by it in the case which has triggered a storm in the country. Attached with the letter were some Indian and Italian press clippings, which, the CBI said, could not form the basis for registering a case.

BJP today said it has been raising the financial irregularities in the VVIP helicopter deal with an Italian company for the past one year and insisted that the Congress-led UPA government give an explanation about the reported anomalies.

“Action has been taken in Italy on the VVIP helicopter scam. The CEO of the company has been arrested. But no action has been taken here. The country which would have benefitted from the deal has taken action while the country which lost money has not done anything,” BJP spokesperson Prakash Javadekar told reporters.

Minutes after this reaction, the government ordered a CBI inquiry into the procurement of 12 VVIP helicopters from Finmeccanica, the Italian parent company of AgustaWestland, UK.

Javadekar maintained that the government owes an explanation on the matter.

He had raised a question in the Rajya Sabha to which the government gave a reply on December 12, 2012.

In the reply, Defence Minister A K Antony had acknowledged that it has come to the notice of Ministry of Defence through several reports that Italian prosecutors had begun a probe into alleged unethical dealings by M/s Finmeccanica. He had then informed the House that the probe into the matter has been widened to include the ibid contract.

Antony had further said upon his ministries request, the External Affairs Ministry has taken up the matter with the Italian and UK governments to get further details.

“However, in the absence of any specific information, the government has not started any formal probe in this regard by Indian agencies,” Antony had said.

Not satisfied with this reply, Javadekar wrote a letter to Antony on December 14, 2012 stating that there are several indicative evidences of payment of kickbacks and the suspected graft should be probed.

Javadekar said Italian investigators are probing allegations that AgustaWestland paid a commission of Euro 51 million to Switzerland-based consultant Guido Ralph Haschke to facilitate the deal in India.

Finmeccanica's head Giuseppe Orsi was arrested yesterday.

The Rs 3,546-crore contract for 12 AgustaWestland helicopters with the company was concluded in February 2010.

Under pressure from Opposition on the VVIP helicopter scam, the government on Friday insisted that there was "no delay" in ordering a probe and asked BJP, which has demanded an investigation by a Parliamentary panel, to approach it on the issue instead of going to media.

External Affairs Minister Salman Khurshid said the government could not act earlier as information into the allegations was not forthcoming despite its sincere efforts.

"I do not think there was any delay (in ordering a probe) as the reports were unconfirmed reports about some questions being asked outside our jurisdiction. We were asked by the MoD to seek information and information was sought from Italy as well as UK. But no information was forthcoming," he said.

Asked why his ministry could not get information about the alleged kickbacks in the deal, Khurshid said when information was available with the government, a probe was ordered immediately.

"You can only go upto a point without a jurisdiction and as and when that information was made available, the government acted immediately. I don't think you can just keep fishing and jumping the gun and ordering inquiries. When there is that level of information available that required an inquiry the government acts immediately as we have now," he said.

Insisting that the specifications for the choppers were changed during the NDA regime, Khurshid rejected claims that those involved in it had political patronage.

On BJP's demand for a probe by a Parliamentary panel, Khurshid said: "They are demanding JPC through you (media). They should rather demand for JPC from the government. There is a procedure under which they should approach the government over the issue."

British Prime Minister David Cameron arrived here this morning on a three-day India visit during which will he meet captains of industry and hold talks with top leaders who are likely to seek more information on the VVIP chopper deal involving an Anglo-Italian firm AgustaWestland.

Cameron is likely to be pressed for more information on the Rs 3,600 crore helicopter scam involving AgustaWestland during his meetings with the leadership tomorrow. The helicopters, three of which have already been delivered, were manufactured in southwest England.

The visit also comes in the wake of India taking steps to scrap the contract after Italian investigators probed allegations that aerospace group Finmeccanica, the parent company of AgustaWestland, had broken the law by paying bribes to foreign officials.

Cameron landed here at around 8.30 AM and was received at the airport by Minister of Protocol Suresh Shetty and senior Maharashtra Government officials.

He is accompanied by a large delegation which includes CEO of top British corporates, Vice-Chancellors of reputed universities and senior Government officials, among others.

"In Mumbai, Cameron's programmes include visit to Hindustan Unilever headquarters, a luncheon meeting with business leaders, a visit to St Xavier's School and laying a wreath at the Police Memorial," an MEA statement said.

The Premier will leave for New Delhi in the evening.

Cameron is also expected to attend a private function being hosted by a large conglomerate before leaving for the national capital, according to industry sources.

This would be his second visit to the country since he took over the mantle, with the first being soon after assuming office in May 2010.

In Delhi, Cameron will hold comprehensive talks with Prime Minister Manmohan Singh on a wide range of bilateral, regional and international issues.

Besides the defence deal, other major issues expected to figure during Cameron's visit would include the Rs 12,000 crore Vodafone tax matter and the UK hosting a meeting between the Pakistan and Afghanistan Presidents.

NDA today said it will strongly raise a host of issues, including the VVIP helicopter deal and the Hindu terror remarks of Home Minister Sushilkumar Shinde, in the Budget session of Parliament beginning tomorrow and demand action from the government.

"On February 22, we will raise the issue of corruption in the helicopter deal in both Houses of Parliament at noon. Before every session of Parliament a new scam surfaces," JD(U) chief and NDA convenor Sharad Yadav said.

The NDA floor leaders, belonging to BJP, JD(U), SAD, Shiv Sena and Haryana Janhit Party, took this decision in a meeting on the eve of the Budget session.

Yadav said Shinde and Leader of Opposition in Lok Sabha Sushma Swaraj will hold a separate meeting to find a solution to the stand-off over his controversial remarks that BJP and RSS are running terror camps.

Both sides have expressed confidence that they will find a way out on the issue.

The NDA convenor said despite differences with the government on several issues, the Opposition wants the Parliament to run. "We have made this request to the Lok Sabha Speaker also that the House should run and we will talk to other parties also on this issue," Yadav said.

NDA plans to raise several other issues, including discussion and passage of the Bill for protection of women against sexual offences, relations with neighbouring countries, the tussle with Press Council of India Chairperson Markandey Katju over his comments against Gujarat and Bihar governments.

"There are several challenges facing the country. The helicopter scam will certainly be raised. Some other scams were left halfway. We will try to raise them too," Yadav said.

CBI team which reached Italy today to probe role of Indians in the alleged Rs 3,600 crore VVIP helicopter deal scam met its lawyer and described the meeting as "useful".

High level sources in CBI said the team had a meeting with the lawyer engaged by the agency to represent India's case with the Italian government and the local courts to find out the role of Indians in the alleged Rs 3,600-crore VVIP helicopter deal scam in which Giuseppe Orsi, the chairman of Italian air defense group Finmeccanica, was arrested there.

It was a "useful" meeting, they said.

The sources said the assistance of a lawyer has been taken to understand the Italian law and how quickly the documents from the helicopter supplying company could be taken.

The lawyer, if necessary, would be approaching the court in Italy for procurement of documents, they said.

The team comprises a CBI DIG, a law officer of the agency, a Joint Secretary level officer of Defence Ministry and an official of the External Affairs Ministry.

The CBI's decision to send a team to Italy came after it virtually drew a blank from the Defence Ministry in getting some official inputs regarding alleged kickbacks of Rs 362 crore in the case.

The CBI was handed over a letter from the Defence Ministry seeking a probe by it in the case which has triggered a storm in the country. Attached with the letter were some Indian and Italian press clippings, which, the CBI said, could not form the basis for registering a case.

CBI had sought help of Indian Mission in Rome which too has not been able to provide any authenticated court documents to the agency, the sources said.

This was followed by CBI seeking help of Interpol which also expressed inability to provide any help in the absence of any regular case not having been registered by the agency, they said.