The order for the truck was placed by BEML in May for the Defence Research and Development Organisation. The Ministry is planing to cancel the order worth over Rs 50 lakh placed by BEML with the UK-based Tatra Sipox, sources said.
When asked about the development, Defence Ministry's Department of Defence Production refused to comment on it.
BEML had written a letter to Tatra Sipox in May this year seeking urgent delivery of a Tatra truck for around Euro 88,000 (over Rs 50 lakh).
The tie-up between BEML and UK-based Tatra Sipox for supplying Tatra trucks to the Indian forces has been under the scanner after former Army Chief Gen VK Singh alleged that he was offered a bribe of Rs 14 crore for clearing a file for procuring over 600 such vehicles.
After the allegations came to light on Mar 27, Defence Minister AK Antony ordered a CBI inquiry into the allegations.
BEML's Chairman and Managing Director VRS Natarajan has also been removed out of his office by the Ministry for ensuring a free and fair probe into the charges.
BEML and Tatra have supplied more than 6,000 such heavy-duty trucks to the armed forces and the DRDO for carrying missiles and other heavy systems.