The ministry of defence (MoD) has cleared the much awaited blacklisting policy entailing guidelines for suspension or banning of entities indulging in corrupt acts.
The new blacklisting policy will also do away with the blanket bans on companies and will spell out specific guidelines for imposing a ban on companies involved in misdoings. Sources indicated that any such ban imposed will be product and company specific without a cascading effect on the subsidiary companies.
For instance, if such a guideline is spelled out under the policy, this would mean doing away with the blanket ban in cases of companies like the Finmeccanica group.
Parrikar said last month that while “criminal activities” like receiving kickbacks should “normally” be punished with a ban, the decisions will be based on requirement of “national security”.
While officials said the new guidelines of the policy will be uploaded shortly on the website of the MoD, it is learnt that the policy will officially allow middlemen and will define the meaning of “Agents”.