SC Questions Centre over Suspicious Suspension of Defence Supplier in AgustaWestland Case

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The Supreme Court expressed concerns over the Union government's repeated suspension of Defsys Solutions Private Limited, a defence supplier, despite clearing the main accused company in the AgustaWestland VVIP chopper scam. A bench comprising CJI Surya Kant and Justice Joymalya Bagchi questioned the Centre's rationale for continuing the suspension, citing 'mere suspicion' as the basis for punitive action. The court noted that if the main accused company, AgustaWestland, was cleared despite allegations of wrongdoing, then Defsys should also be treated fairly. The hearing arose from the Centre's challenge to a Delhi High Court judgment that quashed suspension orders against Defsys, calling the government's conduct a 'gross abuse of process'. The AgustaWestland case involves allegations of corruption and money laundering in the 2010 contract for 12 VVIP helicopters, which was eventually scrapped in 2014. The Supreme Court directed the Centre to provide the outcome of the CBI investigation into Defsys within three weeks, warning that arbitrary action cannot be justified under the guise of national security.