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Rolls-Royce contracts on hold, may hit IAF, navy

A defence ministry source told HT that the engine maker had admitted in a letter to state-owned Hindustan Aeronautics Limited (HAL), last December, that it had employed a Singapore-based firm Aashmore Private Limited as its “commercial advisor” in India. The firm’s job was to provide strategic advice for which it was paid commission. Defence procurement rules debar middlemen or agents. As a result, the CBI has been asked to probe bribery allegations and investigate all contracts the firm signed with HAL from 2007-11.

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