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MoD suspends business with Vectra for a year over Tatra case
A circular posted on the defence ministry’s website said the decision to suspend business with Vectra was in line with the government’s penalties for wrongdoing in business dealings
The defence ministry has put on hold all business dealings with Vectra Advanced Engineering Private Limited for one year following earlier corruption charges in the supply of heavy-duty Tatra trucks to the army, defence ministry officials said.
Eight years ago, then army chief General VK Singh had claimed he was offered a bribe to clear the purchase of sub-standard Tatra trucks.
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Vectra supplied the Czech-made all-terrain Tatra trucks to the army through Bharat Earth Movers Limited. A circular posted on the defence ministry’s website said the decision to suspend business with Vectra was in line with the government’s penalties for wrongdoing in business dealings.
The circular said the decision to put all dealings with Vectra on hold for a year was taken in the light of a Central Bureau of Investigation (CBI) investigation into the Tatra deal in 2012 and bribery allegations made by former army chief General VK Singh, who is now a union minister.
In 2012, Singh had alleged that he was offered a bribe of ₹14 crore to clear the purchase of substandard Tatra trucks.
In 2016, defence ministry cleared its new blacklisting policy for “suspending or banning” arms contractors for wrongdoings. Dealings with Vectra have been suspended under the 2016 policy that contains penalties that debars firms from conducting business with the government for a period ranging from one to 10 years to remove corruption in the defence sector.
