Dot Revokes Blacklisting Of Arm

The department of telecommunications has revoked its decision to blacklist scam-tainted ARM Ltd from all future equipment tenders. DoT's retraction of the ban on ARM hardly a week after the decision was taken has raised eyebrows in the industry.

DoT will now issue a showcause notice to ARM, along with similar letters that are being sent to 16 companies today which are alleged to have formed a cartel in a tender for supply of Rs 250 crore worth of optical fibre cable, sources said.

The 16 companies which participated in the tender are Sudarshan Telecom, Hindustan Cables, Plasman Telecom, Siemens, Gujarat Optical, Sterlite Industries, Surana Telecom, ARM Telecom, Vikas Hybrid Electronics, Bhillai Wires, Himachal Futuristic Communications, RPG Telecom, Aksh India, Birla Ericsson, Uniflex Cables and Optel Telecom.

 

The department had taken a decision to blacklist ARM on December 26 after its vigilance arm suggested that action be initiated against the company. One of the corruption cases filed against former communications minister Sukh Ram is that he favoured ARM while awarding an order for multi-access rural radio (MARR) equipment.

The letter said: "It has been decided by DoT to blacklist and ban business activities with M/s ARM, Hyderabad, with immediate effect." The December 26 order was withdrawn on December 31 in a department letter issued by DoT's material management group.

It stated: "The letter (of December 26) in original may be kindly returned and no further action be taken."

DoT officials said the decision to revoke the ban on ARM was taken for two reasons. One, the alleged wrongdoing by ARM has not been proven in a court of law. And, two, the department rules an elaborate procedure to be followed before blacklisting a company from the department's list of eligible vendors.