New Delhi: The Ministry of Defence has suspended the executive director (operations) of Munitions India Limited, Anil Kumar, following his arrest in an alleged bribery case involving a ₹500 crore ammunition-supply contract. The action comes as the Central Bureau of Investigation expands its scrutiny of contracts handled by the official and investigates allegations that sensitive defence production and procurement information was shared with private contractors.
Kumar’s suspension takes effect from October 13 – the day he was arrested. As RNA Media had reported, the CBI has also arrested the chief executive officer and director of private defence manufacturer SMPP Limited, Ashish Kansal, and Kumar’s brother, B Harshavardhan, in connection with the investigation.
According to a CBI statement quoted by The Indian Express, the three were arrested on October 13 after the agency registered its first information report (FIR) the previous day. A special CBI court subsequently remanded them in the agency’s custody until October 19.
The case centres on allegations that Kumar accepted illicit payments from contractors and vendors in exchange for favourable treatment in official business. Investigators allege that Kansal maintained regular contact with him over a contract awarded to SMPP to supply ammunition to MIL worth ₹500 crore over one year.
The ₹500 crore figure represents the reported value of the ammunition contract, rather than the amount allegedly paid in bribes. The investigation also concerns the alleged disclosure of sensitive information about defence production, procurement and other strategically important activities at MIL.
The CBI said searches at Kumar’s premises in Pune yielded ₹1.73 crore in cash. Searches at premises linked to the accused in Mysuru, Bengaluru and Delhi produced another ₹50 lakh and documents described by the agency as incriminating, bringing the total cash recovery to approximately ₹2.23 crore.
According to allegations recorded in the FIR, Kumar instructed his brother to travel to Pune to collect and conceal suspected proceeds of corruption. The agency has also alleged that money was routed through Kumar’s wife, brother and other relatives to hide its origin.
The inquiry has now widened beyond the SMPP transaction, with investigators seeking records of all contracts handled by Kumar. The Indian Express reported that the agency was examining family bank accounts and considering whether the evidence warranted a separate disproportionate-assets case, while also looking into the possible involvement of other MIL employees.
SMPP could face separate administrative consequences affecting its dealings with the defence ministry. Media reports said the ministry was likely to suspend business dealings with the company, although that report described prospective action rather than an announced suspension order.
According to the newspaper, guidelines issued this year provide for the suspension of dealings with entities named in FIRs registered by the CBI or other central investigative agencies. Such action could extend to allied firms and certain business partners, potentially broadening the commercial impact of the investigation beyond the ammunition contract under scrutiny.
Pune-headquartered MIL is one of seven defence public sector undertakings created through the restructuring of the Ordnance Factory Board, effective October 1, 2021. It inherited 12 ammunition and explosives factories, placing it at the centre of an extensive government-owned production network supporting India’s defence requirements.
The government said the restructuring was intended to improve efficiency, competitiveness and accountability by giving the new companies greater operational and financial autonomy. The present investigation concerns alleged misconduct within that production and procurement system; the allegations against the accused remain subject to investigation and judicial determination.