The Ministry of Defence has introduced revised guidelines imposing stricter penalties on defence suppliers, including a ban of up to five years for failing to meet contractual obligations or delivering substandard equipment, and up to 10 years for ethical violations.
Replacing the 2016 framework, the updated policy lays out clearer criteria for blacklisting firms and introduces a structured mechanism for financial penalties. It adopts a zero-tolerance approach towards corruption while also holding vendors accountable for delays and underperformance.
Serious breaches such as violations of the Integrity Pact, corruption, bribery, or illegal commissions can attract debarment of up to a decade. Such bans will begin with an initial one-year period, subject to review by a high-level committee, with a maximum cap of 10 years.
In cases of non-performance, suppliers may face an initial six-month ban, extendable up to five years based on parameters like delivery schedules, system reliability, downtime, and failure rates.
The rules also broaden the scope of enforcement to include affiliated entities, joint ventures, and successor firms formed through mergers or restructuring, preventing companies from bypassing penalties.
Additionally, vendors will be given a mandatory 30-day period to respond to any allegations before action is finalised. |
