Indian Military

The Indian government will soon decide on penal action against an Israeli defense company blacklisted in connection with a graft case filed by the Central Bureau of Investigation (CBI) against a former Ordnance Factory Board (OFB) chief, the Indian Upper House of Parliament, the Rajya Sabha was informed Wednesday.

The CBI filed the case against Sudipto Ghosh, former director general of OFB, in May 2009.

Defense Minister Arackaparambil Kurian Antony, in a written reply, said his ministry has issued show cause notices to Israel Military Industries (IMI) last year, following which the company requested supporting documents on the charges against it, which were provided to it.

“A decision regarding the penal action will be taken after examining the reply of IMI and in consultation with the ministry of law and justice and the Central Vigilance Commission,” Antony said.

After examining the First Information Report (FIR) lodged by the CBI against Ghosh, the defense ministry, through an order May 28, 2009, decided to put on hold all contracts with companies named by the investigating agency in the graft case.

The Indian Defense Minister AK Antony confirmed to Parliament on Tuesday, the recommendation of the Central Bureau of Investigation (CBI) for the blacklisting of six arms firms by the Ministry of Defense. Four of these firms, Singapore Technology (Singapore Technologies), Israeli Military Industries (Israel Military Industries), TS Kissan and Company Private Limited and RK Machine Tools Private Limited, are the subject of such a recommendation for the second time, after they were first blacklisted in June last year, along with three other firms, Media Architecture Private Limited of Singapore, BVT of Poland and HYT Engineering of India.

Two other firms, Rheinmetall Air Defence of Germany and a Russian firm called Cooperation Defence have also been recommended for blacklisting this time around.

All of these firms have been implicated in the corruption case involving the former Director General of Ordnance Factories and Chairman of the Ordnance Factory Board (OFB), Sudipta Ghosh, in May last year.