Finmeccanica faces deal probe in India Italy's Finmeccanica defence group, already reeling from corruption probes at home, is reported to be under investigation in India over suspicions of irregularities involving a €560m helicopter deal that could endanger future contracts. Finmeccanica on Monday denied that its AgustaWestland subsidiary had been involved in any wrongdoing over the sale of helicopters to India, and said the company had not been served notice of an investigation in either country. Shares in Finmeccanica closed 6.3 per cent lower on the reports. Indian defence sources confirmed that an investigation had been launched into the purchase of 12 helicopters from AgustaWestland, to be used by the prime minister and other senior government officials. Finmeccanica beat US rival Sikorsky to seal the deal in February 2010, giving the Italian company a firm foothold in the fast-growing Indian defence market where it has been involved for more than 40 years, supplying aircraft, weapons and radar systems. AgustaWestland, which is building the helicopters for India in the UK, is bidding for other helicopter contracts in India for the navy, air force and coastguard. It denied wrongdoing and said the price of its contract had been lowered on the signing of the deal in 2010 from that offered when it made the bid two years earlier. State-controlled Finmeccanica is under investigation in Italy for allegedly inflating contracts, with proceeds then moved into slush funds used to bribe Italian and foreign officials. Pier Francesco Guarguaglini resigned as group chairman over the probes last December, to be followed by his wife, Marina Grossi, who was chief executive of Selex Sistemi Integrati, a subsidiary. Both denied the accusations. Mr Guarguaglini was replaced by Giuseppe Orsi, who had been head of AgustaWestland at the time of the Indian helicopter deal. Il Messaggero, an Italian daily, reported on Monday that A.K. Anthony, India's defence minister, had ordered the probe into the purchase after suspicions were raised in India from leaks of the Italian investigations. Giulio Terzi, Italy's foreign minister, is due to arrive in India on Tuesday. Relations between the two countries have been complicated by the arrest this month of two Italian marines who had been on board an Italian oil tanker to protect it from pirates.