India's Defence Ministry on Monday has put on hold all the deals with the UK-firm Rolls-Royce until a CBI probe into allegations of kickbacks and unauthorised use of an outside “commercial adviser” by the British firl in contracts with Hindustan Aeronautics Ltd. (HAL) is completed.
Rolls-Royce contracts, worth nearly $1.6 billion for the supply of aircraft engines to HAL for its trainer aircraft during 2007-2011, are under a cloud.
The controversy evoked sharp reaction from political parties with CPI(M) general secretary Prakash Karat tweeting that as in the Agusta VVIP chopper scam, the UPA government was forced to order a CBI probe only after foreign governments acted against arm dealers.
“The probe progresses only if it is monitored by the courts. The Congress government always hides the scams,” the ministry spokesperson was quoted as saying by The Hindu.
Rolls-Royce said it would cooperate with the authorities and had repeatedly made clear that “we will not tolerate misconduct of any sort”.
Indias Hawk advanced jet trainer (AJT) programme is facing a major blow after a bribery scandal involving Rolls Royce in connection with contracts to supply aircraft engines to state-owned Hindustan Aeronautics Limited surfaced. According to various reports, the Indian government on March 2 has ordered a CBI probe into allegations that global engine manufacturer Rolls-Royce committed irregularities and violated contractual provisions to bag contracts worth over $1
The Indian ministry of defence (MoD) has apparently cleared all the pending queries on the manufacturer of the M-777 ultra-light Howitzers - regarding the proposed acquisition for 145 of these artillery guns, but the deal with the US through the Foreign Military Sales (FMS) programme will not be inked yet. According to various reports, the deal may not be signed until a new government is in place later this year
The Indian MOD has fined BAE Systems for supplying defective components for the Hawk AJT aircraft in service with the Indian Air Force (IAF). The defective components caused delays in supply of the aircraft by Hindustan Aeronautics Limited (HAL) to the IAF, Defence Minister A K Antony told Indian parliament
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