CBI Probe Over ₹500‑Crore Ammo Deal Triggers Clean‑Up at Top Defence Firm MIL

A Central Bureau of Investigation probe into a ₹500‑crore ammunition contract has placed Munitions India Limited under intense scrutiny. The investigation led to the arrest of MIL executive director Anil Kumar, his brother B Harshavardhan, and SMPP Limited chief Ashish Kansal. The defence production department is monitoring the case closely and plans a clean‑up and renewed push for accountability.

Financials

MIL posted a record profit after tax of ₹1,250 crore for 2025‑26, the highest among the seven defence companies created after the Ordnance Factory Board was split. Collectively, the seven firms earned ₹2,801 crore in profit and MIL generated ₹10,954 crore in revenue, a 33 % jump from the previous year. Export orders worth ₹1,500 crore for 28 products across nine countries have boosted its overseas presence.

Possible Sanctions

SMPP Limited, which makes ammunition, loitering munitions, and protective gear, could face suspension or a ban on government contracts under the Defence Procurement Manual. The manual allows penalties, suspension for up to a year, or longer in national‑security cases when corruption is proven or a CBI probe is underway.

Context

The corporatisation of the former Ordnance Factory Board aimed to make India’s defence manufacturing more efficient and competitive. Corruption probes like this test the new structure’s ability to enforce transparency and maintain investor confidence.