Saturday, 9 March 2013

current affair

World Bank Barred Larsen &Turbo for six Months over Forgery

The World Bank in the month of March 2013 barred Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for a period of six months, as it found that a senior executive of the conglomerate indulging in fraud.

The debarment has made L&T ineligible for being awarded of any contract of the World Bank Funded projects and also from receiving any loan proceeds made by the Bank or participating in any Bank-financed project. The debarment is supposed to continue till 6 September 2013.

The World Bank in its sanction order dated 7 March 2013 mentioned the fraudulent practices of L& T as per the bank’s procurement guidelines against fraud and corruption.

Consequences of the Ban imposed on L&T


During the debarment period, L&T as well as any of the entities controlled directly or indirectly by it cannot be nominated even sub-contractor, consultant, manufacturer, supplier or even service provider to an otherwise eligible firm being awarded a World Bank-financed project.

Reason behind the Debarment

The debarment aroused due to the discrepancy in a bid submitted by L&T through the Regional Business Head of its Medical Equipment and Systems unit to a bank-financed project in Tamil Nadu in September 2008

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