World Bank imposes six-month sanction on L&T

World Bank imposes six-month sanction on L&TGlobal financial body, the World Bank has imposed a six month sanction on Infrastructure giant Larsen & Toubro (L&T) alleging that the company was involved in fraud by committing forgery.

The sanctions will restrict the company from conducting business with the institution or participate in any project funded by the World Bank during the coming six months. The Bank said that the sanctions will restrict the company from dealing with the across the entire World Bank group. It said that the punitive step was taken due to fraudulent practices at the company under the bank's procurement guidelines against fraud and corruption.

Larsen & Toubro (L&T) said on Friday that it has taken necessary steps to avoid any such sections in the future. The company said that an employee involved in the incident has left the company and it has since divested the medical equipment business.

“A junior employee in our medical equipment's business falsified some customer testimonials and submitted them in support of an offer. On discovery of misrepresentation the employee was confronted with the facts and he resigned from the company. L&T has since divested the medical equipment's business,” the company said.

L&T also said that the management has tightened control across the group for avoiding such instances. The company also claimed that the sanctions imposed by the World Bank would not have any significant impact on its business.