Ministry of Defence has recently issued Guidelines for penalties in business dealings with entities, which have come into effect from 21.11.2016. The Guidelines have also been put in public domain by uploading them on the website of Ministry of Defence (http://mod.nic.in/writereaddata/guideentities.pdf). The Guidelines lay down policy for levy of financial penalties and / or Suspension / Banning of business dealings with entities, seeking to enter into contract with / having entered into a contract for the procurement of goods and services by the Ministry of Defence.
During the last three years, business dealings with six companies / entities have been put on hold and in respect of two other firms restricted procurement was permitted only if such procurements are justified and necessary on the basis of operational urgency, national security and non-availability of other alternatives.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Smt Sarojini Hembram in Rajya Sabha today.
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