The software exports connect to the AgustaWestland deal

India's software exports, as alleged, played the cover-up for AgustaWestland deal in which the chopper firm is accused of paying kickbacks to Indian middlemen to the tune of Rs 350 crore. The overall deal to source VVIP choppers was worth Rs 3,546 crore. The deal came under fire after the Italian government arrested AgustaWestland CEO Bruno Spagnoli accusing him of paying bribes to Indian middlemen to secure the deal from Indian Air Force.

If the reports are to be believed, the chopper company routed up to 20 million euro (around Rs 144 crore) in the deal signed in 2010 via Tunisia. The Economic Times reports, "The remittances were shown as payments for software developed in India, perhaps because the company reckoned that transfers would not attract suspicion, given the large volume of exports."

Furthermore at least 100,000 euros were paid in cash to former Indian Air Force chief SP Tyagi's three cousin brothers - Juli, Docsa and Sandeep - during his tenure.

The report also allege that the Tyagi brothers influenced their cousin - IAF chief Tyagi - to modify the tender in favour of the company. Hence the conditions were changed, reducing the operating height from 18,000 feet to 15,000 feet for choppers.