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Indian Defence Minister A K Antony announced in parliament Dec. 2 that the following decisions have been taken after consultation with the Central Vigilance Commission (CVC) in respect of seven firms/companies/suppliers /vendors, supplying defence equipment to the armed forces during the last two years and the current year i.e. M/s Israeli Military Industries, Israel; M/s Singapore Technology, Singapore; M/s HYT Engg; M/s TS Kishan and Co. Pvt Ltd, New Delhi; M/s RK Machine Tools; M/s BBT, Poland; M/s Media Architects Pte Ltd, Singapore:-
(a) Where contracts have been concluded and also executed, action should be taken against the companies, as per the provisions of the contract, on completion of the CBI investigation.
(b) In regard to the tender cases of procurement/execution, where the tender process has already been started and where the companies mentioned in the FIR are figuring, each case should be dealt as per the tender conditions, keeping in view the FIR in question. No tender should be awarded to the companies mentioned in the FIR unless the CBI investigation clears them totally.
(c) The tender cases of procurement/execution, where the tender process has not yet started, there should be no dealing with the companies mentioned in the FIR, till the finalization of investigation.
(d) Contracts that have been entered into and are being executed or pending execution, shall remain on hold. In these cases, further action will be taken as per the contractual provisions on receipt of the investigation report of the CBI.
A press release issued by the Defence Ministry stated that Defence Procurement Procedure (DPP) 2008 provides for direct dealing with Original Equipment Manufacturers (OEMs) or Authorised Vendors or Government sponsored Export Agencies (applicable in case of countries where domestic laws do not permit direct export by OEMs). Further, the procedure, inter-alia, incorporate provisions for penalties being imposed if any seller engages any individual or firm, whether Indian or foreign whatsoever, to intercede, facilitate or in any way recommend to the Government of India or any of its functionaries, whether officially or unofficially, to the award of the Contract to the Seller.
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