Defence ministry goes tough on tainted companies involved in scams

India Today, Ajit Kumar Dubey, Feb 20, 2018

Continuing its strict policy against the firms facing action for indulging in wrongdoings, the Defence ministry on Monday issued a comprehensive list of firms who have either been blacklisted or business with whom has been put on hold.
The documents issued by the Defence ministry also feature the name of VVIP chopper scam accused firm Finmecannica, which has changed its name to Leonardo in order to participate in the defence deals.
The ministry reviewed the situation and decided to suspend its dealings with the new entity as well.
The list also includes firm Offset India Solutions, which is under the scanner for its role in the alleged Pilatus aircraft scam and one of its senior functionaries Sanjay Bhandari.
The dealings with the firm were put on hold on January 5 this year.
The list includes six firms which have been debarred from doing business, 14 firms with whom business has been put on hold or transactions have been suspended and four firms who can do business with the Defence Ministry with restrictions.
The list of firms who are allowed to do restricted business with the Defence ministry includes global engine manufacturer Rolls Royce, which is in the list for alleged irregularities it committed while dealing with defence sector undertaking HAL in 2014 and a CBI probe is underway into the matter.
"It has been decided that further procurements from Rolls Royce and its allied and subsidiary companies may be done only if they are justified and necessary on the basis of operational urgency, national security non-availability of other alternatives and the requirements are justified by senior officers," the Ministry order said.
The chopper scam accused firm Finmeccannica, which was under the scanner for bribery allegations in the acquisition of 12 VVIP AW-101 helicopters, has been banned from doing business for six months in May last year and it was extended again in November last year.

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