India wary of defence deals with Israel | Israel | | Indian Express
NEW DELHI: Israel is Indias second biggest defence partner, but some Israeli companies are under scanner for inappropriate conduct in striking deals. The Ministry of Defence has admitted in Parliament this week that some Israeli companies have committed irregularities, but stopped short of naming them.
The countrys powerful Israel Aerospace Industries (IAI) has already been blacklisted by the MoD along with several other foreign companies for their alleged involvement in Ordnance Factory Board scam.
The Israeli company, along with others, has been issued fresh show-cause notice following a Delhi High Court judgment in the graft case involving former director of OFB Sudipto Ghosh. The show-cause notice was based on the case lodged by CBI and the MoD is seeking legal advice on taking penal action.
The companies have replied.
Despite blacklisting of the IAI, Israeli companies have managed to bag big contracts as they eye Indias big defence budget. The last major contract was with Libit Systems for supply of unmanned aircraft systems.
An unprecedented level of secrecy is maintained by New Delhi about its contracts with Israel. This leaves a big room for irregularities which are not subjected to scrutiny. The governments admission that irregularities have taken place has brought to light the way business is being done.
There has been a strong criticism from within the defence community in the country that Israelis were overpricing their products. The Indian domestic defence production industry suffers from big technology handicap and has to rely on foreign vendors.
Israels technological edge makes it an easy choice.
But in the name of this edge, they are selling just everything to India, said an official.
It was cited that Israeli companies sourced some material from India and sold it at much higher price. The officials have called for greater scrutiny of the deals and stressed that the ties should be more open.
NEW DELHI: Israel is Indias second biggest defence partner, but some Israeli companies are under scanner for inappropriate conduct in striking deals. The Ministry of Defence has admitted in Parliament this week that some Israeli companies have committed irregularities, but stopped short of naming them.
The countrys powerful Israel Aerospace Industries (IAI) has already been blacklisted by the MoD along with several other foreign companies for their alleged involvement in Ordnance Factory Board scam.
The Israeli company, along with others, has been issued fresh show-cause notice following a Delhi High Court judgment in the graft case involving former director of OFB Sudipto Ghosh. The show-cause notice was based on the case lodged by CBI and the MoD is seeking legal advice on taking penal action.
The companies have replied.
Despite blacklisting of the IAI, Israeli companies have managed to bag big contracts as they eye Indias big defence budget. The last major contract was with Libit Systems for supply of unmanned aircraft systems.
An unprecedented level of secrecy is maintained by New Delhi about its contracts with Israel. This leaves a big room for irregularities which are not subjected to scrutiny. The governments admission that irregularities have taken place has brought to light the way business is being done.
There has been a strong criticism from within the defence community in the country that Israelis were overpricing their products. The Indian domestic defence production industry suffers from big technology handicap and has to rely on foreign vendors.
Israels technological edge makes it an easy choice.
But in the name of this edge, they are selling just everything to India, said an official.
It was cited that Israeli companies sourced some material from India and sold it at much higher price. The officials have called for greater scrutiny of the deals and stressed that the ties should be more open.
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