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World Bank blacklists Videocon for violating guidelines

business Updated: May 04, 2010 21:50 IST

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Accusing Venugopal Dhoot-led Videocon of indulging in fraud and corrupt practices in dealings with it, the World Bank has blacklisted the Indian company for three years, ending January 11, 2013.

Videocon Industries Ltd has been barred from doing any business with World Bank for violating "procurement guidelines", for a period of three years, beginning January 11, 2010, a notification on the Bank's website said.

The World Bank had taken a similar tough line with Satyam Computer months before the IT company's founder chairman confessed to an accounting fraud.

Either Dhoot or his spokesperson could not be reached for comments, despite several phone calls and messages.

Videocon was sent a "letter of reprimand subsequent to an administrative process" permitting the company to respond to the allegations, the World Bank said in its latest update of companies blacklisted for doing business due to fraud and corruption charges.

Videocon's name has been listed among firms and individuals ineligible to be awarded a World Bank-financed contract, as it has violated fraud and corruption provisions of the procurement guidelines.

"The period of ineligibility of Videocon Industries Ltd extends to any firm directly or indirectly controlled by the sanctioned firm," World Bank said.

It further said that the ineligibility might be reduced by up to one year, if after two years of ineligibility, the Bank's Sanctions Board finds Videocon of having taken "satisfactory" remedial actions.