Antony pushed aside any suggestions that the IAF’s original requirements were modified to suit the Italian firm. “The recommendation was made by the IAF and the Special Protection Group on security considerations,” he said. “The government accepted this.”

Asked whether other deals with Finmeccanica will be affected, Antony says it will depend on the CBI report on the deal.

Finmeccanica officials were expected to meet late on Feb. 13 to discuss governance during the crisis. The arrests have essentially decapitated two of Italy’s largest companies. Shares in the conglomerate, which is 30% owned by the Italian government, closed down 4% that evening.