In a punitive action, the Indian Navy has encashed a bank guarantee given by the Reliance Naval Engineering Ltd due to inordinate delay in supplying five offshore patrol vessels, and said on Monday, 3 November, the deal is being looked into.
The Navy Chief was asked about the huge delay in delivery of the vessels by the company and whether Navy is under any pressure to not initiate any action against the company.
The Navy chief also said that the company is undergoing corporate debt restructuring.
There was no immediate reaction from RNEL about the Navy chief's comments.
Anil Ambani's Reliance Defence has been at the centre of a controversy over the Rs 58,000-crore Rafale fighter jet deal. The Congress party has accused the government of favouring the company.
The company as well as the government have rejected the charges.
According to the original contract, the first vessel was to be delivered by early 2015. However, the deadline was pushed several times.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)