Israeli defence companies involved in irregularities: Indian Minister

Irregularities in respect of some Israeli Defence companies operating in India have come to notice and appropriate restrictions have been placed on dealing with the companies, Defence Minister A.K. Antony told Parliament without naming the companies. In another case involving alleged bribery of an Indian Ordnance Factory Board (OFB) former chief, it has been decided to issue fresh show cause notices to the companies involved (including Israeli ones). A decision regarding penal action will be taken after examining the replies of the companies and in consultation with the Ministry of Law, the minister said. Recalling the case, the minister said that the Central Bureau of Investigation had registered a case against former OFB chief and some others in May, 2009 regarding receipt of illegal gratification from some suppliers of Ordnance Factories. After examining the FIR lodged by CBI, the Ministry of Defence had decided to put on hold all contracts with the companies involved in the CBI case, in its order dated May 28, 2009. The order was challenged by some of the companies before the Delhi High Court. The High Court in its judgement dated February 11, 2010 directing that penal action against the companies can be taken only after following the principles of natural justice. Accordingly, show cause notices were issued to all the companies based on the contents of the FIR lodged by CBI. Replies were submitted by the companies denying the allegations and seeking specific evidence based on which penal action was proposed against them. The CBI provided this information in a later charge sheet.