Pertains to CBI case of illegal gratification against ex-OFB Director General

The Ministry of Defence (MoD) has debarred six companies, including Singapore Technologies Kinetics Ltd. and Israel Military Industries (IMI), from doing business for 10 years in connection with a Central Bureau of Investigation case of illegal gratification against a former Director General of the Ordnance Factories Board (OFB).

The four other companies — Rheinmetall Air Defence, Zurich; Corporation Defence, Russia (CDR); TS Kisan & Co. Pvt. Ltd., New Delhi; and RK Machine Tools Ltd., Ludhiana — were barred from entering into further business dealings with the OFB, the Department of Defence Production. Ministry's chief spokesman Sitanshu Kar said the firms were recommended for blacklisting by the CBI on the basis of evidence collected against them. These firms were issued notice to show cause as to why action should not be taken against them consequent to the filing of a charge sheet in the case related to illegal gratification against the former Director General of the OFB, Sudipto Ghosh, and others.

“The decision to debar was taken today [Monday] after taking into consideration their replies,” the spokesman said. In 2009, the Ministry put procurement from seven firms on hold following allegations of corruption in a deal pertaining to the OFB and the CBI probing it.

The case pertained to reports of wrong-doings in a procurement pertaining to another Ministry but Defence Minister A.K. Antony decided to act to send a strong message that he supported clean and transparent dealings in defence purchases.

IMI had inked a contract with the OFB to set up an ordnance complex of five plants at Nalanda, Bihar, to manufacture 155mm Bi-Modular Charge Systems and other propellant charges for heavy calibre artillery ammunition for the Bofors Howitzers and other guns.

Singapore Technologies Kinetics Ltd. was a strong contender in tenders for 155mm guns and Ultra Light Howitzers (ULH) for the Army. Following the decision to put the tender on hold, the Government is now pursuing procurement of ULHs from the United States under the Foreign Military Sales (government-to-government) route.

TS Kisan & Co. Pvt. Ltd. supplies spares and accessories for the Army's main-battle tanks and RK Machine Tools Ltd. supplies spares for vehicles and machines