Durban, October 04, 2005 (PTI)

India has said that no contract with state-owned South African arms manufacturing firm Denel, whose supply of rifles and ammo to Indian army is mired in charges of commission payment, has been cancelled.

Indian military attache in Pretoria Samir Advani said in response to inquiries by journalists that there was no truth in rumours that any contract between Denel and Indian government had been cancelled.

He said the contracts were under investigation and until this exercise was completed, no contracts would be ended.

His remarks came on a statement by a spokesperson for Denel Priya Pillay on Monday that the company for the last six months had been aware that the contracts had been suspended by the India pending an investigation into corruption allegations.

Denel is accused of having paid an intermediary company in England money in order to secure the contracts from the Indian Defence Force for supply of 400 anti-material rifles as well as deals for an ammunition plant and artillery.