The defence ministry has extended an earlier order suspending business dealings with Vectra Advanced Engineering Private Limited for another six months in connection with previous corruption charges in the supply of heavy-duty Tatra trucks to the army, officials aware of the matter said on Tuesday.
The first such order was passed in August 2020, putting on hold all business with Vectra for a year, followed by a series of six-monthly extensions of the suspension of business order, the officials said.
These orders were in line with guidelines issued by the defence ministry in November 2016 for penalties in business dealing with entities.
Also Read: MoD suspends business with Vectra for a year over Tatra case
In 2012, then army chief General VK Singh had claimed he was offered a bribe of ₹14 crore to clear the purchase of sub-standard Tatra trucks.
Vectra supplied the Czech-made all-terrain Tatra trucks to the army through Bharat Earth Movers Limited.
The latest order, dated March 6, extended the decision to suspend business with Vectra from February 14, 2024, for six months.
The decision to put all dealings with Vectra on hold for a year in 2020 was taken in the light of a Central Bureau of Investigation (CBI) investigation into the Tatra deal in 2012 and bribery allegations made by Singh, who is now a union minister.
In 2016, the ministry cleared its new blacklisting policy for “suspending or banning” arms contractors for wrongdoings.
Dealings with Vectra were suspended under the 2016 policy that contains penalties that debar firms from conducting business with the government for a period ranging from one to 10 years to remove corruption in the defence sector.
