The defence ministry has decided not to conduct any business with seven defence firms.
The names of these firms figure in the FIR registered by the Central Bureau of Investigation (CBI) in Kolkata against former Director General of Ordnance Factory Board Sudipto Ghosh.
Defence Minister AK Antony on Monday put on hold all proposed acquisitions from Israeli Military Industries (IMI), M/s Singapore Technology, M/s HYT Engg, Delhi-based M/s TS Kishan and Co Pvt Ltd, M/s RK Machine Tools, M/s BVT of Poland and M/s Media Architects Pvt Ltd, Singapore.
Defence ministry sources said: “Although no chargesheet has yet been filed by the CBI, concrete evidence such as transfer of money to personal accounts have been detected.”
“The government views both receiving and giving bribes as an offence and no lenient view can be taken.”
The sources said the matter would be reviewed as and when the investigating agency provided more evidence.
Ghosh, arrested last month, had allegedly received kickbacks from several defence firms to favour them with lucrative deals.
The IMI is likely to face the immediate fallout of the decision as it had bagged Rs 1,200-crore contract this March to build five artillery munitions factories over three years in Bihar’s Nalanda district.