Amid a raging row over alleged kickbacks in the AgustaWestland helicopter deal, the Foreign Investment Promotion Board has deferred a decision on increase in Foreign Direct Investment in the Italian firm's joint venture with Tata Sons.

Indian Rotorcraft, a joint venture of AgustaWestland (a Finmeccanica company) and Tata Sons for setting up an assembly line for the AW119Ke helicopter, had sought post-facto approval of the FIPB for increased FDI inflow of Rs 19.64 crore as against Rs 17.6 crore approved in September 2011.

Besides the increased FDI inflow, it had also sought approval for 'change of the foreign investor from AgustaWestland SpA, Italy to Finmeccanica SpA by way of merger of AgustaWestland SpA, Italy into Finmeccanica SpA'.

Decision on proposal for Indian Rotorcraft has been 'deferred', said the Finance Ministry in a statement.

It gave no reason for deferring the proposal. The FIPB meeting was held on April 8. Tatas have previously said Indian Rotorcraft has 'no connection whatsoever with AgustaWestland's (AW) supply of AW101 military helicopters to the Government of India'.