Q. No. 1749 Lack of transparency in defence deals in India

Question: Will the Minister of DEFENCE be pleased to satate :-

(a) whether there is a lack of transparency in defence deals in India;

(b) if so, the details thereof alongwith the details of defence deals wherein corruption has been reported during last five years;

(c) the response of Government thereto;

(d) whether Government would take concrete measures to root out corruption in defence deals and bring transparency in these deals in view of this report;

(e) if so, the details thereof; and

(f) if not, the reasons therefor?

Answer: Minister of Defence (Shri A.K. Antony)

(a) No, Sir. The Defence Procurement Procedure (DPP) contains stringent provisions aimed at ensuring the highest degree of probity, public accountability and transparency.

(b) to (f): Complaints alleging irregularities / corruption in defence deals are received from various sources from time to time. Whenever any allegation of corruption in defence deals is received, the same is examined by the Ministry and wherever necessary, the case is referred to the appropriate agency for investigation. Suitable action is also taken against the vendors and persons found guilty in such cases.
Further, following six firms have been debarred in March, 2012 from further business dealing for a period of ten years:-

(i) M/s Singapore Technologies Kinetics Ltd. (STK).
(ii) M/s Israel Military Industries Ltd. (IMI).
(iii) M/s Rheinmetall Air Defence (RAD), Zurich.
(iv) M/s Corporation Defence, Russia.
(v) M/s T.S. Kisan & Co. Pvt. Ltd., New Delhi.
(vi) M/s R.K. Machine Tools Ltd., Ludhiana.