Agusta case: Supreme Court rejects Centre plea, Defsys business ban lifted

New Delhi: The apex court has dismissed the Centre's appeal against the Delhi High Court order, lifting the suspension of business with Defsys Solutions after the CBI counsel submitted it has no adverse material against the company.

The Centre had suspended Defsys from doing business with the government over its alleged role in the ₹3,600-crore VVIP chopper case.

Last August, HC quashed a series of suspension orders against Defsys, describing the government's conduct as a "gross abuse of process". It had struck down suspension orders dated July 5, 2024, January 1, 2025, and June 24, 2025, each of which imposed a six-month ban on the company's business dealings with the government. Appearing on behalf of Defsys, senior advocate Mukul Rohatgi submitted that even after about 12 years, CBI probe is still ongoing.


At the last hearing on December 17, SC had asked CBI to produce any fresh evidence it may have collected against the company. On Monday, CBI's counsel apprised "as of now, no adverse material" has been found against Defsys.

"That being so, we see no reason to interfere with the impugned judgement of the high court. The SLP is accordingly dismissed," SC ordered, adding if CBI lays its hands on any fresh material, it will be entitled to proceed in accordance with the law.

SC bench said in view of its order, Defsys is at liberty to "approach the competent authority in the Ministry of Defence for redressal of its grievance regarding the suspension order".

Justice Joymalya Bagchi asked the Centre's counsel: "Your case before the HC was Augusta is the principal offender, chargesheeted, and money from Augusta moves through Defsys. Now, Augusta being given a reprieve, how can you proceed against Defsys?"

Defsys counsel Advocate Major Nirvikar Singh (retd) confirmed to ET that the appeal by the Centre has been dismissed. A copy of the order is awaited.