Bangalore: A new rule passed by Defence Ministry of India is to cost the country’s IT companies deals worth $10 billion with global defence products suppliers. The companies are now lobbying with the government to decrease the severity of the memo which was introduced in May this year, reports Economic Times.

The new rule was conceived by the Defence Ministry in wake of the scam that allegedly involved funnelling kickbacks through fake contracts with software companies. According to the investigations carried out in India and Italy, nearly 400 crore in bribes were routed through IDS Infotech and Aeromatrix under the pretext of mandatory contracts that foreign defence suppliers must award to Indian firms. The main deal involved the Indian purchase of $600 million (3,600 crore) worth of Agusta Westland helicopters from a subsidiary of Italian company Finmeccanica.

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