NEW DELHI: A corruption investigation into Indian defence manufacturer SMPP Ltd has cast uncertainty over 10 Indian Army contracts worth more than Rs2,000 crore, following allegations of bribery in a major ammunition procurement deal.
According to India’s The Economic Times, the company has come under scrutiny in a Central Bureau of Investigation (CBI) probe involving alleged payments to a government official to secure a contract valued at approximately Rs500 crore.
The investigation has raised concerns about the future of the company’s military supply agreements, particularly as SMPP provides ammunition, attack and surveillance drones, and protective equipment to the Indian armed forces.
Any cancellation of the contracts could disrupt planned equipment deliveries, although the authorities have yet to announce such a decision.
The allegations have also triggered criticism of Prime Minister Narendra Modi’s government over transparency and accountability in defence procurement.
An Indian journalist accused the government of allowing corruption to undermine military spending, questioning whether public funds allocated to defence were being properly utilised.
The controversy has brought India’s military procurement practices under scrutiny, with questions emerging over oversight of major defence contracts and safeguards against irregularities.
However, the bribery allegations remain under investigation, and no finding of wrongdoing across all 10 contracts has been established.
The outcome of the probe could determine the future of the affected agreements and any subsequent action against those found responsible.