New Delhi, Oct 11 The Ministry of External Affairs (MEA) has debarred BLS International from participating in all future tenders of MEA and India Mission abroad for a period of two years, according to the company's exchange filing on Saturday, adding that the debarment will not affect its existing contracts.
On October 9, the MEA issued the debarment order, giving a number of reasons for the action.
"MEA issued order to debarred from participation in future tenders of the MEA and India Mission abroad for a period of two years," the exchange filing stated.
In its regulatory filing, the tech-enabled service provider to the government made it clear that the order was issued in response to accusations made against it in court cases and applicant complaints.
"Order for debarment has been issued on the account of allegations, including court cases and complaints of applicants," the exchange filing read.
This two-year suspension prevents BLS International from bidding on any new MEA-related work, both domestically and for Indian Missions globally.
However, the company said that the order would not affect its existing contracts.
"This debarment shall not affect the existing contracts and shall continue as per the existing terms," the company said.
According to the company, it is not expected that this restriction on future business will have an impact on the listed entity's current operations or financial performance.
"This debarment shall not affect the financial performance of the existing operations of the company. Further, the Company is evaluating the said order and will take appropriate action to address it in due course as per the law," the company said.
However, the two-year restriction could cause a major obstacle to BLS International's future growth pipeline with the Ministry of External Affairs.
BLS International shares ended the session slightly higher at Rs 337.90 per share on Friday, up 0.18 per cent. In the last 5 sessions, the stocks jumped over 2.5 per cent; however, in the last 30 days, they fell over 8.5 per cent. To date this year, the scrip decreased by over 30 per cent.
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