The Gurgaon-based company, which makes fighter aircraft pylons, external fuel tanks and defence electronics, has been suspended from any dealings with the defence ministry and its entities for the next six months.
Invoking a clause that stipulates the competent authority to suspend dealings with an entity if information is received on initiation of a criminal investigation or inquiry by the CBI or other agencies, the ministry has conveyed to all departments to strictly follow the order.
Defsys had initially been banned in 2022 by the ministry for its alleged involvement in the helicopter scandal but had approached the courts asking for relief. The MoD had suspended its business after receiving an intimation from the CBI purportedly saying that a former director of the company-Sushen Gupta- was involved in the Rs 3,600 crore VVIP chopper deal. The CBI had also issued two notices to Defsys.