World Bank bans Larsen & Toubro

The World Bank has banned India's largest contractor, Larsen & Toubro (L&T), from winning contracts it funds for six months following allegations of misconduct.

An investigation by the World Bank’s anti-corruption division, the Integrity Vice Presidency, uncovered evidence of fraudulent bidding on a Bank-financed health care project in India.

“The company submitted 13 forged performance certificates as part of its bid for a contract to supply 130 ultrasound scanners,” the World Bank said.

L&T said the sanctions took effect on 7 March and were imposed “due to the misconduct of an ex-employee of the medical equipment business of L&T, whilst bidding for a tender in the year 2008”.

The contractor said the ex-employee’s conduct was contrary to its code of conduct and did not reflect the values of L&T. It added that it had tightened its controls across the group as a result.