Six defence suppliers, including four from Israel, Germany, Russia and Singapore, were on Monday blacklisted by the government for alleged involvement in the multi-crore ordnance factory scam and barred for further business dealings for 10 years.
Action has been taken by the defence ministry against Singapore Technologies Kinetics Ltd, Israel Military Industries Ltd, Germany’s Rheinmetall Air Defence and Corporation Defence of Russia, an official statement here said.
Two Indian firms — Delhi-based T S Kisan and Co Pvt Ltd and R K Machine Tools of Ludhiana — have also been brought under the scanner. The action came on the heels of a chargesheet relating to illegal gratification being moved against Sudipta Ghosh, former Director General of Ordnance Factories, and others by Central Bureau of Investigation (CBI).
“These firms were issued notice to show cause as to why action against them should not be taken. After considering their replies, it has been decided to debar all these firms from further business dealings with the Ordnance Factory Board, Department of Defence Production and the Defence Ministry for a period of 10 years,” the ministry statement said.
While the Singapore firm is dealing with Howitzers and small arms, the Israeli firm was to help the ordnance factory in production of ammunition for Bofors guns. The German company makes air defence and land systems and the Russian firm deals with military equipment.
In June 2010, the CBI had filed the chargesheet in a special court at Kolkata against Ghosh and 11 others for graft. It was alleged that Ghosh had entered into conspiracy with the other accused with the object of demanding and obtaining illegal gratification for various supply orders placed by OFB and also in matters relating to transfer or posting of the officers of Ordnance Factories.
Following registration of the case and subsequent probe, the CBI had arrested Ghosh and a few other people. During the raids, the agency had seized huge amounts of cash from the residences and bank lockers of the former DG and his wife.
The chargesheet has named Ghosh and his wife, Kajal Ghosh, the director of T S Kishan and Companies Private Ltd, Satish Mahajan, and Sunil Handa, manager of R K Machines Tools. Three cases were also registered by CBI against Ghosh for possessing assets disproportionate to known sources of income.
