(ANSA) - Rome, July 29 - Prosecutors in the northern Italian city of Busto Arsizio on Tuesday shelved proceedings against aerospace and defence giant Finmeccanica for alleged corruption in the sale to the Indian government of 12 AW-101 helicopters made by its AgustaWestland subsidiary. The prosecution found the company had nothing to do with the alleged corruption. AgustaWestland has agreed to pay a fine, while reiterating it knew nothing about the alleged bribery, Finmeccanica said in a statement.

Prosecutors earlier this month asked that former Finmeccanica CEO Giuseppe Orsi be sentenced to six years and former AgustaWestland CEO Bruno Spagnolini get five years in prison for allegedly paying the bribes that secured the 566-million-euro contract for AgustaWestland. Orsi, whose trial has been adjourned to September 30, resigned from the helm of the State-controlled firm last year after being arrested in relation to the probe.

He denied wrongdoing, telling a preliminary investigations judge that all his actions were "motivated by the exclusive interest of Finmeccanica and all its subsidiaries".

He also denied knowing the Tyagi family, members of which prosecutors say received bribes paid by Finmeccanica to secure the contract in India.

India's Central Bureau of Investigation (CBI) last year questioned former Air Force chief of staff Shashindra Pal Tyagi and his cousins Julie and Docsa Tyagi in connection with the alleged kickbacks.

India froze payments on the choppers in early 2013 after only three had been procured in the wake of claims that bribes had been paid to Indian officials to secure the contract.

It cancelled the deal at the start of this year but has agreed to take part in an arbitration process.

Formed in 2000, AgustaWestland is a wholly Italian-owned helicopter design and manufacturing company, and a wholly owned subsidiary of Finmeccanica. Based in Amsterdam, it employs some 13,000 people.

Finmeccanica's largest shareholder is the Italian government, which owns 30% of the defence and transport conglomerate. It employs some 63,000 people and posted profits of 74 million euros on revenue of 16 billion euros in 2013.

