India publishes new guidelines for procurement misconduct

22 November 2016

The Indian Ministry of Defence (MoD) published on 21 November long-delayed guidelines on how to deal with suppliers who have been charged with misconduct in defence procurement.

The "guidelines for penalties in business dealings with entities" remove the previous blanket 10-year ban on any company alleged of wrongdoing. Over the past decade more than 10 companies are known to have been subjected to these disbarments.

The new policy provides the MoD with powers to suspend and/or ban a company (foreign or Indian) alleged of misconduct in cases including corruption or other illegal activities; violating the integrity pact; breaching clauses related to the payment of agents; and jeopardising national security.

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