The Supreme Court has dismissed the Centre's appeal against the Delhi High Court's order to lift the suspension of business with Defsys Solutions Private Ltd, a defense manufacturer implicated in the AgustaWestland VVIP chopper case. The ruling effectively lifts the ban on Defsys, allowing them to resume business dealings with the government.

The decision came after the Central Bureau of Investigation (CBI) informed the court that it had not found any fresh incriminating evidence against the company. Additional Solicitor General K.M. Nataraj, representing the CBI, conveyed this information to a bench comprising Chief Justice of India Surya Kant and Justices Dipankar Datta and Joymalya Bagchi.

Defsys Solutions had been under suspension due to allegations of involvement in the ₹3,600-crore AgustaWestland VVIP chopper case. The Ministry of Defence (MoD) had initially banned Defsys in 2022, and had suspended business dealings with the company for six months in July 2024, citing fresh information on its involvement in the case. These actions followed CBI reports implicating a former director, Sushen Gupta, in the controversial chopper deal. Gupta was accused by the Enforcement Directorate (ED) of playing a key role in the AgustaWestland helicopter scam. He was arrested in March 2019 under the Prevention of Money Laundering Act but was later released on bail.

The Delhi High Court had previously quashed a series of suspension orders against Defsys, terming the government's conduct as a "gross abuse of process". The High Court struck down suspension orders dated July 5, 2024, January 1, 2025, and June 24, 2025, each imposing a six-month ban on the company's business. The High Court observed that Defsys had not been named as an accused in any of the chargesheets filed by the CBI in the AgustaWestland case and emphasized that Defsys had not directly transacted with AgustaWestland.

During the Supreme Court hearing, Justice Bagchi questioned the logic of proceeding against Defsys when AgustaWestland, the primary offender, had already been granted relief. Senior Advocate Mukul Rohatgi, appearing for Defsys, argued that the CBI investigation had been ongoing for over 12 years without yielding any concrete evidence against the company and stated that Defsys had not taken a single rupee from AgustaWestland.

The Supreme Court clarified that if the CBI obtains any new evidence in the future, it reserves the right to proceed against Defsys in accordance with the law. The court stated, "That being so, we see no reason to interfere with the impugned judgement of the high court. The SLP is accordingly dismissed". The Supreme Court bench also noted Defsys is free to petition the Ministry of Defence to address its concerns about the suspension order.

Defsys Solutions is a Gurgaon-based company that manufactures fighter aircraft pylons, external fuel tanks, and defense electronics. The company had argued that the suspension orders were passed without any show cause notice and were based on vague inputs. The recent Supreme Court decision brings an end to a prolonged legal battle, allowing Defsys Solutions to resume its operations in the defense sector.