Kalpataru Power Transmission announced that the World Bank Group on 6 October, 2020 announced a settlement with the Company pertaining to the World Bank's position that the Company had failed to disclose intended payments to third parties when submitting bids in respect of two World Bank-financed projects in the years 2010 and 2012.
Under the settlement, KPTL and its controlled affiliates in transmission line business have agreed to sanctions due to which KPTL and its controlled affiliates in the transmission line business cannot participate in World Bank Group-financed projects and operations for a period of 12 months and 1 day, post which the World Bank will continue to monitor the compliance program for and the Company's continued cooperation with the World Bank Group Integrity Vice Presidency for the next five months, during which period KPTL and its affiliates in transmission line business may participate in such projects and operations.
The settlement does not entail monetary penalty on KPTL and its affiliates.
As per the terms of the settlement, the Company has committed, among other things, to continue developing and enhancing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines.
The debarment of the Company and its controlled transmission line affiliates qualifies for crossdebarment by a few other Multilateral Development Banks (MDBs) under the Agreement for Mutual Enforcement of Debarment Decisions.
KPTL has order book visibility for next two years and the current sanctions will not impact the projects under execution. The Company does not see material impact on its operations and financial position due to the above sanctions.
The settlement does not impose any sanctions on JMC Projects (India) and Shree Shubham Logistics and their respective subsidiaries and joint venture company.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU