Blacklisted defense companies may continue to do business with India until charges against them are proved; the Indian MoD is understood to have made this decision, according to media reports.
The decision was reportedly made at a recent meeting of senior MoD officials and Indian Defense Minister, Arun Jaitley.
The decision will come as a major relief to international companies who found the blacklisting clause particularly harsh to deal with when they have not even been indicted in a court of law.
International companies including Singapore Technologies, Israeli Military Industry, Germany's Rheinmetall Air Defense, and South Africa’s Denel are under an indefinite blacklist. Though AgustaWestland has not been blacklisted yet, the Indian MoD has put all contact with it on hold including servicing of helicopters already delivered to India
Former Defense Minister, A.K.Anthony had cancelled major contracts of six companies that included four foreign and two Indian defense companies and had been blacklisted for 10 years by the government. Action had to be taken based on the recommendations by the Central Bureau of Investigation.
"We have cancelled many major contracts following corruption charges. We have very strong safeguards on integrity form. For any contract beyond Rs100 crore integrity pacts is a must," he had said at a press conference at the DEFEXPO in Delhi.