Mahindra Defence Systems (MDS) has severed ties with a blacklisted Swiss company for a proposed project to produce radars for naval ships.

MDS, a part of the Mahindra and Mahindra group, had tied up with Rheinmetall Air Defence — a Zurich-based defence firm, for a proposed navy tender to produce surveillance radars for warships.

“We have informed the Defence Ministry that we no longer have any tie-up with Rheinmetall Air Defence (RAD) and we will soon make an announcement about our new partner for the project,” MDS head Brigadier (retd) Khutub Hai told PTI here.

The decision in this regard was taken by the company soon after the Defence Ministry blacklisted RAD along with Israeli IMI, Corporation Defence of Russia and Singapore Technologies Kinetics and two Indian firms for their alleged involvement in the multi-crore ordnance factory scam and debarred them for further business dealings for 10 years.

Due to blacklisting of Rheinmetall, another tender for replacing the air defence guns of the army has also been affected.

India had taken action against these companies after the CBI filed a charge-sheet relating to illegal gratification against former Director General of Ordnance Factories, Sudipta Ghosh and others.

The Defence Ministry had issued a statement saying that these firms were issued notice to show cause as to why action against them should not be taken.

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