Corruption probe into ₹500-crore ammo contract rattles top defence producer Munitions India

A CBI probe into a ₹500-crore ammunition contract has resulted in the arrest of Munitions India Limited’s executive director Anil Kumar, his brother B Harshavardhan, and SMPP Limited chief Ashish Kansal. The investigation casts a shadow over MIL, which reported the highest profit among the seven defence firms carved out of the former Ordnance Factory Board, posting a ₹1,250 crore profit and ₹10,954 crore revenue for 2025-26.

MIL’s export portfolio, valued at ₹1,500 crore across nine nations, underscores its strategic importance. The Department of Defence Production is closely tracking the case and may impose penalties or suspend SMPP’s government business under the Defence Procurement Manual. Such actions could affect future defence contracts and the broader push for accountability in India’s defence manufacturing reforms.