15 February 2013 Last updated at 13:55 GMT
Finmeccanica boss Orsi 'steps down' amid corruption probe
Finmeccanica is Italy's biggest
aerospace and defence group
The chairman and chief executive of
the Italian defence firm Finmeccanica, has resigned, according to reports citing
his lawyer.
Giuseppe Orsi was arrested in Italy this week as part of a corruption
investigation involving the sale of helicopters to the Indian government. India has started the process of cancelling the $750m (£485m) contract.
Finmeccanica has already handed the running of the firm to another director while it deals with the allegations.
According to the Italian news agency, Ansa, Mr Orsi announced his decision to resign in a letter to a magistrate who questioned him.
Mr Orsi has worked for
companies now part of the Finmeccanica group for more than three decades
Mr Orsi is facing allegations that the Italian group's AgustaWestland unit
used bribes in order to win the India contract for 12 helicopters in 2010. He
denies any wrongdoing. On Thursday, India's defence ministry said it was freezing payments to Finmeccanica while the Central Bureau of Investigation (CBI) carried out its investigation into the aircraft deal.
According to the BBC's Sanjoy Majumder in Delhi, the ministry has now issued a legal notice to Finmeccanica seeking to cancel the contract for the aircraft, which were to be used to transport the country's top politicians, including the president and the prime minister.
Three of them have already been delivered, but the ministry said the contract was now on hold and no more payments would be made.
A separate inquiry has been ordered into allegations that top Indian officials may have received kickbacks to help secure the order.
Former Indian Air Force chief SP Tyagi has denied allegations that he or any of his relatives were paid bribes.
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