The Supreme Court of India has directed the Central Bureau of Investigation (CBI) to present any fresh evidence it has gathered against Defsys Solutions Private Ltd, a firm suspended from government business over alleged links to the AgustaWestland helicopter deal scandal. The apex court emphasized that "there can’t be any compromise with the defence of the nation" but also expressed skepticism about continuing the firm's suspension when the alleged principal offender, AgustaWestland, had already been granted relief.
Court Questions Logic of Suspension
A bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi was hearing the central government's appeal on Tuesday, December 17, 2025. The appeal challenged a Delhi High Court order dated August 28, 2025, which had set aside suspension orders against Defsys Solutions.
The court pointed out a critical inconsistency in the government's position. Justice Bagchi remarked, "They (AgustaWestland) are the principal accused with regard to that defence purchase. You have withdrawn the suspension from Agusta. The insinuation against this firm (Defsys) is that they were used as a conduit for laundering. If the principal offender is given a reprieve, why should the proceedings against the latter continue?"
Suspicion vs. Concrete Evidence
Additional Solicitor General K M Nataraj, representing the Centre, argued that the suspension was a temporary measure pending a CBI investigation. He stressed that matters involving defence supplies allow for minimal judicial interference. The suspension, he stated, was based on a CBI report.
However, the Supreme Court noted that the latest suspension order dated June 24, 2025, appeared to be founded merely on "suspicion" as the probe was still ongoing. Chief Justice Kant observed, "You ask CBI to conclude the investigation and if some material comes, you can issue a fresh show-cause notice. As of now, there is only suspicion; suspicion of siphoning off… delivering the bribe money which allegedly AgustaWestland supplied to them. They were a conduit of Agusta."
Defsys's Defence and Court's Directive
Senior Advocate N K Kaul, appearing for Defsys Solutions, vehemently denied any wrongdoing. He argued that the company had not been named in any chargesheet and that there was no material on record against it. Kaul highlighted the severe impact of the suspension, stating, "It’s an Atmanirbhar Bharat programme. My only dealing is with the government. You brought my entire business to a standstill over the last 4 years."
After hearing both sides, the Supreme Court granted the ASG three weeks to file an additional affidavit detailing the outcome of the CBI's investigation from June 2025 onwards. The bench made it clear that if the CBI had gathered any reliable material beyond mere suspicion in this period, it should be presented to justify further action.
The court's stance underscores a delicate balance between safeguarding national security interests in defence deals and ensuring that punitive actions like business suspension are backed by substantive evidence, not just suspicion, especially when analogous entities have been let off the hook.
