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The Ministry of Defence (MoD) has announced the suspension of business dealings with M/s Defsys Solutions Pvt. Ltd., effective from June 9, 2024. This suspension will last for six months or until further orders are issued.

The suspension stems from the ongoing Central Bureau of Investigation (CBI) probe into the AgustaWestland case, a high-profile corruption scandal involving the procurement of helicopters.

The MoD cites its own guidelines, established in November 2016, which authorize the suspension of business dealings with entities under investigation by the CBI or other agencies. Additionally, the MoD references a recent Delhi High Court judgement from May 2024, which grants the MoD the liberty to suspend companies potentially involved in the AgustaWestland case based on investigative findings.

The MoD’s decision appears prompted by “further new inputs” received from the CBI in their investigation of Defsys Solutions Pvt. Ltd.’s role in the AgustaWestland case.

This suspension prohibits the MoD and all its branches from engaging in any business dealings with Defsys Solutions Pvt. Ltd. for the specified period. All wings within the MoD and Service Headquarters are instructed to strictly adhere to this decision.

The order raises questions about the nature of the new information received by the MoD and the potential consequences for Defsys Solutions Pvt. Ltd. beyond the six-month suspension.