Supreme Court Sets Aside Centre's Bid to Suspend Defence Supplier Defsys in AgustaWestland Case
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The Supreme Court has dismissed the Centre's appeal to continue suspending business dealings with Defsys Solutions Private Limited, a defence supplier, in connection with the AgustaWestland VVIP chopper case. The court's decision comes after the Central Bureau of Investigation (CBI) conceded that it has no fresh evidence against the company to indicate criminality. A Supreme Court bench, comprising Chief Justice Surya Kant and justices Dipankar Datta and Joymalya Bagchi, refused to interfere with the Delhi High Court's order quashing a series of suspension orders issued against Defsys. The court observed that in the absence of new or adverse material, there was no justification for continuing punitive action against the firm. Defsys has been subjected to repeated suspensions since 2022, despite the company maintaining that it had no involvement in the alleged corruption scandal. The court questioned the Centre's rationale for continuing action against Defsys, pointing out that the principal accused, AgustaWestland, had already been cleared and allowed to resume business with the Indian government in 2021. Additional Solicitor General KM Nataraj conceded that there was no fresh incriminating material against Defsys, paving the way for the court's decision. The Supreme Court's ruling brings an end to the Centre's challenge to the Delhi High Court's August 2025 judgment, which quashed three successive suspension orders against Defsys. The controversy surrounding Defsys arose from its alleged involvement in the ₹3,600-crore AgustaWestland VVIP helicopter deal signed in 2010. While the CBI and the Enforcement Directorate continue to probe various aspects of the case, Defsys may now approach the competent authority in the Ministry of Defence for appropriate relief.
