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Defence Ministry mulling blacklisting of defence firms: Antony

The government is examining a CBI recommendation for blacklisting of four foreign and two Indian defence firms, Defence Minister A K Antony said on Tuesday.



New Delhi: The government is examining a CBI
recommendation for blacklisting of four foreign and two Indian
defence firms and action will be taken in consultation with
Law Ministry and Central Vigilance Commission (CVC), Defence
Minister A K Antony said on Tuesday.
Replying to written questions in the Lok Sabha, Antony
said the CBI had made its recommendations after naming the
companies in a charge-sheet filed in a special court in
Kolkata in a corruption case against former Ordnance Factory
Board Chairman Sudipto Ghosh.

The CBI has recommended blacklisting of foreign firms--
Singapore Technology Kinetics, Israeli Military Industries,
Rheinmetall Air Defence and Corporation Defence Russia--and
Indian firms T S Kissan and Company and R K Machine Tools.

The CBI had registered a case against Ghosh and some
others regarding receipt of illegal gratification from various
suppliers of ordnance factories before a special court in
Kolkata in May last year.

Based on the evidence available so far, the CBI charge
sheeted T S Kissan Company Limited from Delhi and R K Machine
Tools from Ludhiana.
The CBI alleged in its report that illegal gratification
was paid to Ghosh on behalf of some other firms also and that
some of them may be liable for prosecution at a later stage
depending on the evidence that is collected during the ongoing
investigation.

Antony said the report of the CBI indicated that T S
Kissan Company allegedly paid Rs 30 lakh as illegal
gratification to Ghosh for getting certain supply orders from
Avadi-based Heavy Vehicles Factory and R K Machine Tools paid
over Rs 2.5 lakh for obtaining certain orders from Chanda-
based Ordnance Factory and HVF.

"The investigations conducted by CBI have not implicated
other officers of the OFB. In respect of other companies the
CBI report indicates that there is a prima facie or
circumstantial evidence of payment of illegal gratification to
Ghosh. The matter is under further investigation by CBI," he
said.

The Defence Ministry is yet to sign any deal with
Singapore Technology Kinetics, Rheinmetall and Corporation
Defence Russia.

PTI

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