The CBI has asked the Delhi High Court to set aside the trial court order discharging Rheinmetall and three individuals on corruption charges and revive an arrest warrant against a former employee of the company.
Dismissal of these criminal charges, however, does not mean Rheinmetall would be able to do business with the defense ministry.
Here’s why the first India-Singapore defense industry joint working group held last May didn’t include Singapore’s biggest defense company.
In purely dollar terms, the new price represents a 37 percent hike in the cost of the offer to India, but would effectively be even higher given the fall in the value of the rupee against the dollar since 2010.
The Delhi High Court has dismissed the challenge filed by Israel Military Industries (IMI) to its blacklisting, saying there was no merit in its petition.
In a statement issued on Thursday, the company said, “In all of its R&D and supply programs in India IMI has always acted legally, ethically, and in full compliance with its established corporate policy which mandates ethical business dealings.”
In the background of these challenges and the defence ministry’s inaction on a decision to blacklist the Singapore-based company, the OFB mandate should not become an excuse for lack of movement on the procurement of artillery by the army. Already, the ministry has been reported to have indicated it cannot move on the procurement as the matter is sub judice. At the same time, it has not decided the issue either, as is evident from the observations of the court. This has held up the acquisition of crucial types of artillery again, after the multiple cancellation of tenders since the Bofors buy.
“The hearing qua the issue of black-listing of the petitioner (Singapore Technologies Kinetics) was concluded on 18.05.2011. Despite this, we are still informed that the final order qua the issue of black-listing of the petitioner has still not been issued,” observed the Delhi High Court.
The Delhi High Court has placed a hold on the acquisition of artillery guns by the Indian Army without its clearance. In the course of hearings of writ petitions filed by arms company, Singapore Technologies Kinetics, a bench comprising Justice Sanjay Kishen Kaul and Justice Rajiv Shakdher passed an interim order on May 02, 2011, asking the Ministry of Defense to refrain from awarding the tender without ‘leave and liberty of the court’.
The arms company has contradicted the basis of the CAG audit, saying it signed a Memorandum of Understanding on offsets and collaborated production with the Ordnance Factory Board.
The CAG submitted a report to Parliament last week, that testifies to the acts of omission and commission, based on incompetence, lack of foresight or mala fide intent, that led to the recommendation for the blacklisting of Singapore Technologies, arising from the issue of the supply of carbines to paramilitary forces.
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, Singapore Technologies, Israel Military Industries, TS Kissan and Company Private Limited and RK Machine Tools Private Limited, Rheinmetall Air Defence of Germany and a Russian firm called Cooperation Defence.
The army chief, General Deepak Kapoor has indicated that the long-pending artillery guns procurement may be further delayed due to the ongoing investigations into the corruption scandal involving former Ordinance Factory Board Director General Sudipta Ghosh.
The Indian Ministry of Defense has blacklisted seven defense companies for alleged involvement in the deals tainted by corruption discovered with the arrest of the former Director General of Ordinance Factories, Sudipta Ghosh.
