September 10, 2018:

Delhi High Court has stated that every Defence Contractor has to face "innuendoes" of graft and thus it cannot be a basis for 'Blacklisting' any Company. Court called it as "the Nature of the Beast".During the hearing of petition of two Defence Contractors - Singapore-based S T Kinetics (STK) and Swiss Armament Manufacturer Rheinmetall Air Defence (RAD) -against their blacklisting by the Centre in connection with a 2009 Ordnance Factory Board Bribery Scandal.

STK and RAD had moved to the High Court in 2012 in stand of the 10-year ban on them on participating in any tender issued by the Ordnance Factory Board (OFB).

They were 'Blacklisted' after 2 years of the arrest of OFB Director General 'Sudipta Ghosh' for accepting bribes from Potential Vendors.

In Petition, the Singapore-based firm has claimed that it was not named in the Charge Sheet and has not been given the documents which form the basis for blacklisting it.

Centre had came out with its 'New Policy' in July. Guidelines of the Ministry of Defence for Penalties in Business Dealings with Entities that reduces the ban period to FIVE years from TEN years. Thus STK moved a representation that its blacklisting be reconsidered as per to the latest norms.

When Centre did not respond, STK moved the court to seek direction to the Defence Ministry to decide the representation.

Court directed the Competent Authority of the Central Government on Sep 6 to decide the representation made by STK preferably within 4 weeks and place the official determination before it on the following date of hearing which is on November 12.

STK was in the race for contracts to Supply Light Howitzers, Small Arms and all-terrain vehicles while Rheinmetall was vying for Air Defence and Land System deals before getting blacklisted.

CBI had filed a Charge Sheet in a Special Court at Kolkata against Ghosh and 11 others for graft in June 2010 in which Ghosh was alleged to enter into Conspiracy with the other accused. The objective so suspected is to demand and obtain illegal gratification for various supply orders placed by OFB and also in matters relating to transfer or posting of the officers of ordnance factories.

Three other cases were also registered by CBI against Ghosh for Possessing Assets disproportionate to known sources of income.

Source:PTI

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