World Bank Sanctions Indian Company Larsen & Toubro Limited for Fraudulent Practices

March 8, 2013

WASHINGTON, March 8, 2013 - The World Bank Group today announced the debarment of Larsen & Toubro Limited (L&T), a technology, engineering, construction and manufacturing company in India, for a period of six months following the World Bank Sanction Board's decision in relation to fraudulent practices in a Bank-financed health care project in India.

Evidence relating to the company's pattern of misconduct was revealed in an investigation by the World Bank Integrity Vice Presidency into allegations of fraudulent practices in a bid submission for a contract to supply medical equipment under the India Tamil Nadu Health Systems Project.  The company submitted 13 forged performance certificates as part of its bid for a contract to supply 130 ultrasound scanners.  These performance certificates, which were to demonstrate the adequacy of the firm, were revealed by the World Bank investigation to be false.  Forgeries such as these constitute a violation the World Bank's 2004 Procurement Guidelines and necessitate Bank action.  The six-month debarment is effective March 7, 2013.  As a result, Larsen & Toubro Limited, together with any affiliate that it directly or indirectly controls, is ineligible for any World Bank-financed project during this period.

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