India has cancelled a $770 million (£466m) helicopter deal with British-Italian company AgustaWestland after accusations it bribed officials, a top defence ministry official has told Reuters.
Defence minister A.K. Anthony has said he did not believe AgustaWestland's denial that it paid bribes to swing the deal for the purchase of 12 helicopters for top politicians.
AgustaWestland, a division of Italian defence group Finmeccanica, denies any wrongdoing.
A spokesman for India's defence ministry was not immediately available for comment.