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The Ministry of Home Affairs (MHA) is a tight spot. The Inter-Ministerial Industrial Licensing Committee (ILC) does not want MHA to get away with penning down damaging financial/accounting comments that it gives about the companies seeking permits to produce defence equipment. Such comments are considered additional inputs for security clearance/rejection that MHA recommends to ILC. 
MHA often peppers its recommendations by mentioning some overseas scam (which is already in public domain) relating to the prospective technical/financial collaborator of the Indian applicant for industrial licence. A case in point is SAAB of Sweden with which a few Indian firms have proposed seperate tie-ups for different equipment. 
There are also instances of MHA putting on record information about domestic scams that are household names such as Satyam scam that Tech Mahindra inherited by acquiring Satyam Computers. Such information about scams puts ILC on the guard. It often defers decisions on the applications and ultimately rejects them. 
MHA stance is that while security clearance/rejection is conceived from the standpoint of national security, the additional inputs primarily deal with financial irregularities allegedly committed by the applicant/its foreign partner that it comes across while undertaking due diligence. 
ILC does not agree with MHA’s explanation. The former has taken the stand that financial irregularities cannot be taken in isolation. ILC believes there is little difference between white collar crimes and violent crimes as both can comprise India's national security.
 ILC has thus requested MHA to take a holistic view inclusive of financial irregularities about the applicants. An official quoting ILC as stating that "MHA should take responsibility and give a categorical clearance/rejection" while furnishing its comments on the background of applicants.    
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