Big bucks in sale of CSD items to civilians

'Big scam in sale of CSD items to civilians' May 18, 2011, 04.06am IST TNN
CHANDIGARH: Acting on a petition on the alleged sale of canteen sales department (CSD) items to unauthorised people with the connivance of defence authorities, the Punjab and Haryana high court, on Tuesday, issued notice to the secretary, ministry of defence (MoD), and a Sector-22 dealer, asking them to respond to the contentions raised.
Justice Nawab Singh of the high court sent the notice after hearing a plea filed by Arun Gupta, a local resident, regarding alleged forging/ fabrication of documents to sell items exempted from excise/ VAT to the general public. The case would come up for hearing on May 28.
The petitioner has also sought directions to Chandigarh office of CBI to register a case against the proprietor of Sector 22-based Modern Sales, in charge of Ambala CSD, regional manager and MD of LG Electronics, and a major general-rank officer posted as general manager of CSD, Mumbai, for forgery, cheating and corruption charges.
Gupta stated that a big scam is being perpetrated by some greedy persons who are acting against the interests of serving and retired military personnel.
Giving details of the modus operandi used in the alleged scam, involving dealers and military officials, the petitioner said the Modern Sales received some articles from LG Electronics under CSD billing on concessional rates, but these were neither sold to the defence personnel nor returned to the company.
Giving an example of such transactions, the petitioner informed the HC that in 2003-04, LG sold items totalling Rs 4 crore to the dealer under the CSD category. ''The latter has only shown sale of CSD goods amounting to Rs 13.5 lakh, while the balance stock was shown to be sold to the fictitious defence persons. This has led to misappropriation of goods worth crores of rupees in collusion with military officers,'' the petitioner alleged.
He had also informed the court that a representation was filed before the CBI office, but the agency is yet to take any action on the issue.
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Comment: Bartering of CSD items with civilians is commonplace and trading liquor for services as well as substitute for wages is predominant in all the Cantonments, Peace Stations and Military Colleges (Staff College being the trend setter) throughtout the length and breadth of the country and not confined to the State of Punjab alone!