JOIN USDefence Ministry blacklists 6 companies
After almost three years of investigation to probe their role in bribing Indian officials to bag lucrative military contracts, the government on Monday barred six military firms from having any commercial tie up with Defence Ministry for the next 10 years.
The blacklisted firms include Israeli Military Industries Ltd and Singapore Technologies that was trying to bag an Indian contract for the supply of artillery guns.
Both were expected to put up stalls and showcase their wares at the upcoming edition of DefExpo in Delhi beginning on March 29.
Other firms barred for 10 years are Rheinmetall Air Defence in Zurich, Corporation Defence of Russia, TS Kisan and Co. Pvt. Ltd, New Delhi and RK Machine Tools Ltd in Ludhiana.
Almost two years ago, the Central Bureau of Investigation recommended the blacklisting of these firms on the basis of evidence collected against them since 2009.
Their role came under scanner after CBI arrested Sudipto Ghosh, former director general of the Ordnance Factories Board and other officials who had reportedly accepted bribes from these companies and promised defence contracts worth crores in return.
After CBI filed its first information report in 2009, the Defence Ministry put on hold all contracts with seven companies listed in the FIR, which includes four out of the six firms that have been blacklisted now. They are IMI, Singapore Technologies, TS Kisan and Co and RK Machine Tools.
The government’s decision to put all contracts with these companies on hold was challenged in Delhi High Court, first by RK Machine Tools and then Singapore Technologies.
The Delhi High Court set aside the order and directed the Defence Ministry that penal action against the companies could be taken only after following the principles of natural justice.
Accordingly, show cause notices were issued to all companies. The companies responded by denying the allegations and seeking specific evidence based on which penal action was proposed against them.
The CBI filed charge sheet in June 2010 recommending blacklisting of six firms.
Two new companies that were not named in the original FIR were added to the list of companies recommended for debarment for being involved in illegal gratification.
After considering the responses given by these firms as well as reports from CBI, Central Vigilance Commission and Union Law Ministry, the defence minister A K Antony took the decision on Monday.