<p>World Bank (WB) has barred Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for six months, after finding that a senior executive of the Indian conglomerate has indulged in fraud.<br /><br /></p>.<p>The debarment will continue till September 6, making L&T ineligible for being awarded contracts for any World Bank- funded projects, from receiving any loan proceeds made by the Bank or participating in any Bank-financed project. <br /><br />The matter pertains to a bid submitted by L&T through its Regional Business Head (RBH) of its Medical Equipment and Systems unit to a WB-financed project in Tamil Nadu.<br /><br />In January 2005, the WB Group entered into a Development Credit Agreement with the Indian government to provide $110.83 million of International Development Association credit for the Tamil Nadu Health Systems Project.<br /><br />In July 2008, bidding documents were issued by Tamil Nadu Medical Service Corporation for a contract to supply 130 ultrasound scanners under the Project; L&T submitted bid on September 3, 2008 through the RBH. <br /><br />Upon technical and financial evaluation, L&T’s bid was found to be the lowest, but a complaint was received later that some of the 115 certificates submitted with the bid might have been forged. The RBH said that some medical facilities may have mistakenly denied issuing the certificates. In December 2008, L&T was informed that the tender has been cancelled.</p>
<p>World Bank (WB) has barred Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for six months, after finding that a senior executive of the Indian conglomerate has indulged in fraud.<br /><br /></p>.<p>The debarment will continue till September 6, making L&T ineligible for being awarded contracts for any World Bank- funded projects, from receiving any loan proceeds made by the Bank or participating in any Bank-financed project. <br /><br />The matter pertains to a bid submitted by L&T through its Regional Business Head (RBH) of its Medical Equipment and Systems unit to a WB-financed project in Tamil Nadu.<br /><br />In January 2005, the WB Group entered into a Development Credit Agreement with the Indian government to provide $110.83 million of International Development Association credit for the Tamil Nadu Health Systems Project.<br /><br />In July 2008, bidding documents were issued by Tamil Nadu Medical Service Corporation for a contract to supply 130 ultrasound scanners under the Project; L&T submitted bid on September 3, 2008 through the RBH. <br /><br />Upon technical and financial evaluation, L&T’s bid was found to be the lowest, but a complaint was received later that some of the 115 certificates submitted with the bid might have been forged. The RBH said that some medical facilities may have mistakenly denied issuing the certificates. In December 2008, L&T was informed that the tender has been cancelled.</p>