New Blacklisting policy

Indian Ministry of Defence has come up with the new blacklisting policy. The new policy moves away from blanket blacklisting and will apply to companies accused of impropriety and will not be automatically extended to its allied firms. Also, the Government has reduced the ban period from earlier 10 years to minimum five years. The blacklisting criteria is segregated into six categories - the violation of the pre-contract integrity pact, corrupt practices, and illegal activities during any stage of bid/contract to secure a contract would be treated as serious defaults and the ban period will not be less than five years. Whereas cases like non-performance or under-performance under the terms and conditions of contracts and suspension/banning in the public interest, would be treated less harshly -the ban period in this case will not ordinarily exceed three years. The banning of business dealings, in turn, may be ordered only if a company accepts its misconduct, the CBI files a charge sheet against it or a court or tribunal finds it guilty. However, there is no clarity in as to how companies already blacklisted will be allowed to participate in future defence projects.


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