India To Seek ‘Negotiated Resolution’ Instead Of Blacklisting Defense Firms

India’s latest Defense Procurement Procedure (DPP) is likely to propose alternative mechanisms to curb corruption instead of blacklisting defense manufacturers.

The new DPP to be announced next month is considering ‘negotiated resolution’ with the accused company similar to ‘deferred prosecution agreements’ (DPA) followed by UK and US, according to Indian Express news daily report on Thursday.

The investigating authorities can negotiate with companies accused of wrongdoing to pay penalties and reparations. Criminal prosecution of the company in a particular case is suspended but criminal prosecution of individuals involved in corruption will continue.

The committee formed by Defense Minister Manohar Parikkar to revise the DPP is likely to hand over the final report and recommendations to the MoD on Thursday. An interim report was submitted last week.

The initial mandate of 45 days of the 10-member committee, headed by Dhirendra Singh, former Home Secretary and Special Secretary (Defense), was subsequently extended to July 31.

The defense policy pursued by the previous government under former Defense Minister A K Anthony insisted on putting defense deals on hold if there were allegations of corruption and the firm concerned automatically blacklisted.

Currently, there are fifteen companies including six foreign firms that are blacklisted by MoD while 23 other companies are under scrutiny for allegations of corruption.