Indian MoD To Review Suspension, Ban, Blacklisting Against Defense Companies

The Indian ministry of defense (MoD) will review existing cases of suspension, ban, blacklisting of business dealings with entities, seeking to enter into contract with or having entered into a contract for the procurement of goods and services by the ministry in the wake of new guidelines.

The guidelines lay down policy for levy of financial penalties and/or suspension or banning of business dealings with entities, seeking to enter into contract with or having entered into a contract for the procurement of goods and services by the ministry, Defense Minister Manohar Parrikar said in a statement in the Lower House of the parliament Friday.

No firm or entity has been blacklisted for misconduct or wrongdoing in defence deals in the last three years, Parrikar said.

He, however, said six firms have been debarred from carrying out further business dealings with Ministry of Defence for a period of ten years.

“This was further made applicable to all allied/ subsidiary firms of each of the debarred firms until further orders or until such time as the order of debarring of the firm subsists, whichever is earlier,” he informed the Lok Sabha during Question Hour.

The minister also said that business dealings have been suspended or put on hold in respect of 13 firms.

“In respect of another four firms, orders have been issued restricting procurement from the concerned firms to cases where procurements are justified and necessary on the basis of operational urgency, national security and non-availability of other alternatives,” he added.

Parrikar said the ministry has recently issued guidelines for penalties in business dealings with entities, which have come into effect from November 21.