The probe will look into the legal aspects and whether there is any violation of rules set up by government for a public sector enterprise before entering into a JV contract with private parties, officials said.
MDL--a defence shipyard-- is looking forward to form a Joint Venture with Pipavav Shipyard, Larsen and Toubro and ABG Shipyard to construct warships which are in the pipeline for over last few years.
Sources here said the step has been taken to ensure there is no violation of government rules set up earlier this year for defence public sector companies to enter into Joint Venture contracts with private bodies.
The legalities of the proposed contract are being looked into as a defence company needs to adhere to rules set by the government, sources said.
MDL's move to sign a JV with Pipavav came out last year, leading to protests by other private shipyards.
Consequently, the defence ministry decided to put the entire matter on hold and issued detailed guidelines for governing any such future move.
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