India has seized a bank guarantee worth Rs 224 crore furnished by an Israeli defence vendor for breach of integrity pact after the company was blacklisted for alleged involvement in graft cases related to ordnance factories. “It is the first case in which the integrity pact was brought in vogue and the bank guarantee given by the Israeli Military Industry (IMI) was encashed for their involvement in corruption related cases. The bank guarantee amounting to Rs 224 crore has been encashed by the OFB,” Defence Ministry officials said. The integrity pact for the foreign vendors bars them from indulging in any corrupt activity ranging from hiring middlemen or influencing government officials and processes. IMI was blacklisted by the Defence Ministry last month along with three other foreign firms and two Indian companies following action against former Director General of Ordnance Factories (DGOF) Sudipta Ghosh, who was chargesheeted by CBI for his alleged role in defence scams.
Govt Penalises Israeli Defence Firm For Graft
India has seized a bank guarantee worth Rs 224 crore furnished by an Israeli defence vendor for breach of integrity pact after the company was blacklisted for alleged involvement in graft cases related to ordnance factories.
