Ordnance scam: Defence ministry blacklists six firms

New Delhi: The defence ministry today blacklisted six companies including Singapore Technologies, Israeli Military Industry and Germany’s Rheinmetall Air Defence for 10 years for their alleged role in the ordnance factory scam. The firms, including two Indian and one Russian, were blacklisted following action against former Director General of Ordnance Factories (DGOF) Sudipta Ghosh who was charge sheeted by CBI for his alleged role in defence scams.[caption id=“attachment_234784” align=“alignleft” width=“380” caption=“Doubtful deals. Image courtesy IMI”]  [/caption] “Consequent to the filing of the charge sheet in the case related to illegal gratification against Sudipta Ghosh, former DGOF, the firms were recommended for blacklisting by CBI on basis of evidence collected against them,” a defence ministry official said in New Delhi today. Two Indian firms—Delhi-based TS Kisan and Company and RK Machine Tool based in Ludhiana, were blacklisted. Russian firm Corporation Defence also figured in the list of the companies against whom action has been taken. The firms are debarred from further business dealings with Ordnance Factory Board (OFB), Department of Defence Production under the defence ministry for a period of 10 year, the official said. “These firms were issued notice to show cause as to why action against them should not be taken, consequent to filing of the charge sheet in the case related to illegal gratification against former DGOF Sudipto Ghosh,” the official said. In June 2010, the CBI had filed the charge sheet in a special court at Kolkata against Ghosh and 11 others people for graft. It was alleged that Ghosh had entered into conspiracy with other accused with the object of demanding and obtaining illegal gratification for various supply orders placed by OFB and also in the matters relating to transfer or posting of the officers of Ordnance Factories. Following registration of case and subsequent probe, the CBI had arrested Ghosh and few other people. During the raids conducted by CBI, the agency had seized huge amount of cash from the residences and bank lockers of the former DG and his wife. The charge sheet has named Ghosh and his wife Kajal Ghosh, director of TS Kishan and Companies Private Ltd, Satish Mahajan, and Sunil Handa, manager of RK Machines Tools. Three separate cases were also registered by CBI against Ghosh for possessing assets disproportionate to known sources of income. PTI