Govt penalises Israeli defence firm for graft

In a first, India has seized a bank guarantee worth Rs 224 crore furnished by an Israeli defence vendor for breach of integrity pact after the company was blacklisted for alleged involvement in graft cases related to ordnance factories. Defence minister A K Antony was apprised of the development on Monday during a meeting to review the performance of Ordnance Factory Board here. The integrity pact for the foreign vendors bars them from indulging in any corrupt activity ranging from hiring middlemen or influencing government officials.