In a big setback for the Central Bureau of Investigation probing the AgustaWestland scam, Italy has turned down India’s request to extradite European middleman Carlo Valentino Gerosa. Italy cited lack of an extradition treaty with India as the reason for not extraditing Gerosa. Italy communicated the matter to India earlier this week.Top government sources told ET that CBI will take up the matter with the Ministry of External Affairs now.MEA will try to convince its Italian counterpart that as per Italian law, Gerosa can be remanded to Indian custody. The middleman was apprehended by the Italian authorities last October following an Interpol red-corner notice.CBI will emphasise on having Gerosa’s custody as his questioning is imperative to unearth the conspiracy, according to the agency. CBI believes Gerosa possesses crucial information about other associates allegedly involved in the AgustaWestland scandal. Gerosa is a Swiss passport holder and ‘key player’ in the scam. CBI had charge-sheeted last October, along with others.The CBI charge-sheet had said that the AgustaWestland VVIP chopper scam had caused a loss of 398.21 million euros to India. Besides Gerosa and ex-IAF chief SP Tyagi, others charge-sheeted include middlemen Michel James, Guido Haschke, former AgustaWestland CEO Bruno Spagnolini and former Finmeccanica chariman Giuseppe Orsi.Indicting Tyagi, the agency alleged that he in conspiracy with other accused reduced service ceiling for VVIP helicopters from 6,000 meters to 4,500 meters and operational requirements to make AgustaWestland eligible and eliminate competition.The agency also alleged that AgustaWestland managed to introduce a comparative flight trial with non-functional engine and eventually succeeded in getting the contract for supply of 12 AW-101 VVIP helicopters from the defence ministry mainly due to softening of the IAF service ceiling after SP Tyagi took over as chief.