CAG Report: Can the Generals deliver if they are indicted?

Root out corruption to improve standard of administration: CAG
Shillong, Nov 6, 2012 (PTI)
India will not be able to raise the standards of efficiency in administration unless corruption in high places is not destroyed and nepotism and black marketing is rooted out, Comptroller and Auditor General of India (CAG) Vinod Rai said today.
The CAG also noted that citizen groups have become very discerning and more demanding.
"Unless we destroy corruption in high places, root out every trace of nepotism, love of power, profiteering and black marketing which have spoilt the good name of this country in recent times, we will not be able to raise the standards of efficiency in administration as well as in the production and distribution of the necessary goods of life," he said quoting the speech of first Vice President S Radhakrishnan on the eve of India's Independence, towards midnight on August 14, 1947.
The CAG was addressing the 20th convocation of the North Eastern Hills University here which conferred degrees to 8,035 students including 94 who received doctorate degrees in various disciplines.
Reminding the students that there are great opportunities ahead in their career, Rai warned that "when power outstrips ability, we will fall on evil days." He said, today the issues of ethics, accountability, probity and transparency have come at centre stage.
"Citizen groups have become very discerning and more demanding. What was earlier the silent and hence probably the suffering majority has begun to speak up," the CAG said, adding, "Time has come when we will all be held responsible for our actions, the way the foundation of an ideal society are laid."
Maintaining that ethical management and leadership is the corner stone for any business enterprise, Vinod Rai said, one "cannot compromise" with integrity whether in public administration or in corporate administration.
Stating that while the world is emerging from a severe economic stress and resetting itself to face newer economic realities, Rai said "India is becoming a major economic power."
The CAG urged the graduates to ingrain integrity and honesty in their subconscious and not to compromise under any circumstances despite the testing times and temptations.
"History tells us that many countries have been destroyed not by external aggression but by internal malfeasance," he said.
Expressing concern that the country’s performance in events such as the Olympics, Nobel Prize and registration of patents globally is low, Rai said, "the performance appears even more discerning in the context of our population, number of universities and contribution to global economy."
He said, "This poses a question of quality of education and a mindset of being content with mediocrity rather than being wrong."
Acknowledging that knowledge is power, Rai said the fact that we were conditioned to the hero worshipping of success and frowning upon failure makes us "risk averse".
"We need to strive for excellence, walk the extra mile with clear vision and mission taking every member of the team along," he said.
Root out corruption to improve standard of administration: CAG Comment: The Military needs to improve its image when resorting to local purchases including all types of grants. The commission/ bribe regime should end from top to bottom.

Culpability for Wastage of Funds by the Army Commanders

Reference: Army chief, top generals wasted crores, shows defence ministry audit
Response
Culpability for Wastage of Funds by the Army Commanders by Major General Mrinal Suman
Elements inimical to the services are at it once again. Senior army commanders are being accused of wasting crores of rupees through improper purchases made under Special Financial Powers of the Army Commanders. As per the press reports, a post-audit has been carried out of 55 transactions pertaining to financial years 2009-10 and 2010-11 by the Controller of Defence Accounts. The audit report has estimated the total loss to be to the tune of Rupees 103.11 crores. It is a serious indictment and deserves elaboration.
With a view to impart enhanced autonomy in administrative and operational functioning, various financial powers have been delegated to the Army Commanders. As per the recommendations of the Committee on Defence Expenditure, the Ministry of Defence decided in November 1991 that exercise of such delegated financial powers should be with the concurrence of local financial advisors. It implies that such delegated financial powers are neither absolute nor discretionary, and can be exercised by the Army Commanders only with the prior consent of their Integrated Financial Advisor (IFA).
The system of IFA aims to reduce delays and provide pre-contract expert advice to the executives for ensuring financial prudence and prevent irregularities.
Role of Financial Advisors
Commanders have to obtain prior financial concurrence of their IFA before incurring any expenditure as there is no provision for ex-post facto acquiescence.
IFAs are tasked to carry out a careful and intelligent scrutiny of all proposals involving expenditure from the public funds to ensure economy, efficiency and propriety in public finance. Before according financial concurrence, it is their duty to seek complete and comprehensive justification for the proposals. They are authorised to even challenge the necessity for incurring projected expenditure for a given purchase.
Unless IFA accords Acceptance of Necessity and approves the quantity to be procured, no proposal can be progressed. He questions the proposed mode of tendering and checks the list of prospective vendors. All tender documents are vetted by IFA prior to their issuance.
Most importantly, IFA is always a member of the Commercial Negotiation Committee and participates in the following functions:

Appraisal of bids as regards commercial terms, delivery schedule, performance warranty, guarantee terms and acceptance criteria.

Determination of fair and reasonable price of the product. Preparation of a ‘Comparative Statement of Tenders’ to determine lowest bidder. Undertaking negotiations with the lowest bidder to obtain best possible terms. Diligent drafting of contract to safeguard Government’s interests.

Post-contract management to monitor adherence to the terms of the deal and timely invocation of penalty provisions in case of default.

As is obvious, IFA exercises total and all-encompassing oversight over the complete procurement process. He can stall any procurement proposal if not convinced of its financial propriety.
The Question of Culpability
The said audit report faults the Army Commanders for disregarding guideline while buying foreign equipment, procuring equipment from Indian agents, accepting equipment rejected by another army entity and purchase of Chinese products which may have been embedded with malignant software.
As seen above, IFAs guide commanders at every stage of the procurement process and keep a close oversight. If that be so, onus for rendering faulty financial advice or clearing faulty cases rests on them. They should be asked to explain alleged irregularities and infirmities. How can an Army Commander be blamed for adhering to the advice of his IFA? If that be so, why have IFAs at all?
Most outrageously, the audit report states that the local financial advisors are intimidated by military officers in command. One has not come across a more preposterous and bizarre statement. No IFA ever gets intimidated. On the contrary, they are overbearing, domineering and suffer from an acute ‘rank-equivalence-complex’. They keep comparing their pay scales with those of the service officers to draw equations with different ranks. This complex manifests itself in their condescending attitude as they tend to assume the role of dispenser of favours while according financial concurrence. Therefore, the question of their getting intimidated is all baloney.
Inadequacies of the Current Dispensation
It is incongruous that a duly pre-audited procurement process is found to be flawed in post-audit. Interestingly, both pre-audit and post-audit are carried out by the officials of the Defence Finance and their roles are inter-changeable.
Unfortunately, the prime reason for the current weakness of the system is the failure of the Defence Finance officials to deliver. They are expected to act as defence financial advisors but are ill-equipped for the task.
They know nothing about the armed forces, their equipment and functioning. Worse, most are equally ignorant of financial management tools. During a survey of the educational qualifications of the top 50 Defence Finance officers, it was seen that most of them did not possess even elementary knowledge of finance/economics – only 8 percent had studied economics at the post-graduate level. Most were post-graduates in subjects like Political Science, English, Sociology and Sanskrit. Such officials cannot be expected to grasp minutiae of financial imperatives and perform defence economic advisory functions.
Finally
Let us look at the unenviable position of the Army Commanders. They have been asked to follow the advice of their IFAs while exercising their delegated financial powers. They are justified in assuming that all procurement proposals vetted and cleared by IFAs are in consonance with the Government rules and regulations. Therefore, it is absurd that the Army Commanders be held responsible for any alleged irregularities or omissions.
It should be for IFAs to justify the procedure followed. They and they alone should be held accountable for faulty advice and oversight. Quite appallingly, IFAs disown any responsibility under the plea that decision making is the prerogative of the executives and they cannot be held accountable for the same. It is a most ludicrous excuse.
The fact of the matter is that the armed forces are a soft target. The said audit report is a part of the well-orchestrated campaign to denigrate them through planted selective leaks.
Comment: No Army Commander will sign a purchase order unless the FA certifies that every thing is in order. The media has lost all perspective and is out to make headlines even at the cost of reputation of senior army generals. The nexus of IFA Officers and dealers/ spurious vendors need to be investigated.
Of Matters Military - Probity and Formation Commanders
Of the last dozen cases of corruption that we heard about, how many involved officers from the EME, ASC or Ord? It is common knowledge in formations today that the 'meat' lies in op wks, S&S Imprest, ACG/ATG, MI Fund and CHT Fund. Rations and spares are passe.
Probity and Formation Commanders

Assam Rifles funds used to shower gifts on home ministry officials

One scam after the other hits one of India's oldest paramilitary force. Recent investigations reveal that the Assam Rifles fund, meant for the welfare of the jawans, were spent on silk sarees and scotch whisky

100 crore scam exposed in Indian Army?

100 crore scam exposed in Indian Army?
23 Oct 2012, 5:06PM IST| Duration: 08:02

Comment: Local Purchase Powers are misused by Generals who are assured of 20% commission by the spurious dealers and vendors. The purchases are mired in paper work conducive for syphoning off funds. Some of these generals get employed by these dubious firms. This is a route to money and re- employment too.

MES officers held in bribe case

Four naval MES officers held in bribe case date: 22/10/2012
The CBI on Thursday evening arrested four officers of the Military Engineering Services (MES), Navy, Lonavla for allegedly taking a bribe of Rs 5 lakh from a contractor for passing his bills.
The arrested officers are garrison engineer Joy Thomas, assistant garrison engineers A K Khan and K Saravanan, and junior engineer (civil) Ravi Paul.
According to the CBI, contractor Kuldeep Jain from Market Yard was awarded two contracts, totally worth Rs 2 crore, for construction work at the navy’s training institute INS Shivaji in Lonavla.
Jain received running bills of Rs 72 lakh for one contract on October 10, and Rs 13 lakh for the other contract on October 12. However, the officers had allegedly demanded a bribe to pass the other bills, for the work was still going on.
Jain lodged a complaint with the CBI’s anti-corruption bureau on Wednesday. The CBI laid a trap in the office of Joy Thomas on Thursday and caught the suspects red-handed. The investigation agency seized Rs 1.5 lakh from Thomas and Rs 1 lakh from his cupboard, Rs 1 lakh from Khan, Rs 50,000 from Saravanan and Rs 1 lakh, which was meant for Paul, from the car of Saravanan.
On Friday, inspector D K Bali produced the suspects before special court judge D R Mahajan. Seeking five days’ CBI custody for the suspects, special public prosecutors Vivek Saxena and Ayub Pathan told the court that custodial interrogation of the suspects was essential to investigate their individual roles in the case. They also said that the CBI needed time to investigate the role of the suspects in connection with dealing of files and passing bills at various levels.
The court sent the suspects to CBI custody till October 22, 2012
-via The Times of India.
MES officers held in bribe case

Tatra Scam: Will Corrupt Babus and Generals still get their kickbacks?

HT New Delhi, September 17, 2012
The defence ministry is planning to cancel the BEML order, worth over Rs. 50 lakh, given to UK-based Tatra Sipox for supplying one truck, in the wake of the CBI probe into the allegations of irregularities in the supply of these vehicles. 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 told PTI here.
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 March 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.
Defence ministry to cancel DRDO's Tatra truck order PTI

Adarsh Scam: Judicial Commission being bombed by lies!

Had no idea of kin having flats in Adarsh: Chavan
Thursday, October, 04 2012 - 17:35
MUMBAI:Former Maharashtra Chief Minister Ashok Chavan, whose three relatives got flats in Adarsh, today claimed before the judicial commission probing the scam he came to know of their membership in the housing society only after the news of alleged irregularities was broken by the media.
"It was at the end of October 2010 that I came to know that some of my relatives had applied for membership in Adarsh society and the same was granted to them," he told the two-member inquiry commission led by Justice (retd) J A Patil set up by the Maharashtra government to probe the Adarsh scam.
Chavan's mother-in-law Bhagvati Sharma, his father-in- law's brother Madanlal Sharma and his sister-in-law Seema Sharma had flats in the building.
Chavan, who had to step down as chief minister after it emerged that his relatives had flats in the scam-tainted housing society, appeared before the commission today for the second time.
He had earlier deposed before the commission in June to answer allegations against him of bestowing undue favours while granting permission for construction of 31-storey Adarsh building in high-end Colaba in south Mumbai.
Replying to questions put forth by commission's counsel Dipan Merchant, Chavan said he was not aware that his relatives had applied for membership in the Adarsh society.
In his brief appearance that lasted barely 10 minutes, Chavan said he was also not aware if Seema Sharma's application for membership of the society was rejected in 2004 but approved in 2008 when he was the chief minister.
He said soon after he came to know of the membership of his relatives "at the end of October 2010", they relinquished it on October 29 the same year.
Had no idea of kin having flats in Adarsh: Chavan

IAS Officer wants the military command and control chain to be tinkered constantly by bureaucrats

Ref: Making A Public Issue Of Demands by Ashok Kapur IAS
Ashok Kapur, IAS (Retd): Who was he?
A former bureaucrat, he served as Director, Central Vigilance & Jt Secretary, Govt of India, Chairman, Drafting Committee of UN Disarmament Conference on Biological Weapons, Geneva, among other postings. Following retirement as Principal Secretary, Govt of West Bengal, he did MICA and FICA. Currently he is Secretary General, Institute of Directors (an NGO) and Arbitrator, Member, Board of Governors, International Academy of Law, headed by former CJI, Justice Bhagwati. A post-graduate from Delhi Univ, he joined the IPS and stood first in all-India, 1966 and joined the IAS in 1967. He is an LLB from Delhi Univ and has a Ph.D in Urban Planning from NIUA, Delhi & appointed as Associate Prof (Urban & Environmental Planning).
Ashok Kapur favours corruption as against Lokpal Bill- Under the guise of a basic postulate of the rule of law is that all laws placed on the statute book must conform to the Constitution
Please don’t pass the Lokpal Bill
Comment: Bureaucrats have turned India into a den of thieves- It is now a safe haven for thugs and culprits. Thanks to IAS! Ashok Kapur should, after retirement, confine his expertise in Urban planning in all Metros which is now barely livable.

The article by Mr Ashok Kapur, a former IAS officer- Click Here
It needs a rebuttal. Matter of fact. Unemotional. Contesting the vast number of irrelevant, misinformed points raised by him.
It is fortunate that we now know how the Bureaucratic mind works. Transparent in this spiteful article, the contents reflect the sort of conversation that obviously takes place behind closed doors and minute sheets in MOD and other closely confined decision making bodies.
Few observations I have on this are:

Inadequate research, ie statements unsubstantiated by facts.

A desperate bid to counter the COS appointment being currently talked about,

Mistaking Civil Control as control by Bureaucracy- that, as he says, needs strengthening,

Need for Parity in Pay and Pensions with civilians- he forgets that the parity in pay and even status has been tinkered by civil services even after Pay Commissions gave an award,

He forgets that we don't have representation on Pay commissions and so an 'unscrambling of the omelette' has to take place when there are anomalies introduced surreptitiously even after the finalization of the CPC report.

The bottom line seems the aim to stop COS as a concept, and to introduce methods to strengthen the Civil Services. I am working on and would be responding. Other Veterans may do the same. As they say, One good deed deserves another. Please don't restrict your response to Veteran circles.
With Warm Regards,
Veteran Col RP Chaturvedi

NDA Scam: CBI tight lipped

CBI grills former NDA commandant for 2 days
Published: Wednesday, Sep 19, 2012, 13:55 IST
By DNA Correspondent | Place: Pune | Agency: DNA
Former commandant of the National Defence Academy (NDA), Lt General Jatinder Singh, was grilled by a team of Central Bureau of Investigation (CBI) officials in the NDA job scam case for the second consecutive day on Tuesday.
Lt Gen Singh was the NDA commandant when a Rs2 crore scam in the recruitment of class III and IV officers came to light in July.
Lt Gen Singh was later transferred to the Army Headquarters as a staffer.
The CBI officials, however, were tight-lipped about the outcome of the interrogations. Superintendent of CBI-Anti Corruption Bureau (ACB) Rajkumar Vhatkar said, “We have been interrogating Lt Gen Singh for the last two days. We questioned him on various aspects of the case from 10 am on Tuesday till late evening. We cannot disclose what was the outcome of the questioning. Information about the revelations will be included in the chargesheet which will be submitted to the court.”
The CBI-ACB had already arrested eight people including two serving Colonels in the case. The arrested people include Colonel Kulbir Singh, Colonel AK Singh, Suhas Waghmare, Manoj Shitkal, Dattatray Shitkal, Balkishan Kanojia, Vishnu Sharma and Ramesh Gaikwad. All the arrested people have been granted bail.
CBI grills former NDA commandant for 2 days
Comment: CBI is famous for cover ups. This is a straight case where bribes were taken under the command of NDA Commandant- without his knowledge such scale of scam in Military parlance cannot be executed.

Newton's Law of Corruption in India

Nitin Gupta (Rivaldo) is a stand-up comedian & is an alumnus of IIT Bombay (Chemical Engg) and founder of Entertainment Engineers.
Here he is seen performing for the students at the S.P. Jain College and the subject is the CWG, 2G and other scams - the Archimedes Principle and Newton laws are a brilliant take why nobody gets caught in the scams in India – this can be explained by the Archimedes Principle for corruption "Any minister fully or partially immersed in corruption is pushed up by a buoyant force which is equal to the weight of the money displaced by him in the scams".
Laws of corruption should be passed – similar to Newton laws of motion

Black money at rest will remain at rest, scams in motion will remain in motion, until unless an external force like the Jan Lokpal Bill is applied to them by people outside the parliament...
See and enjoy the hilarious video for more - unfortunately its not a laughing matter, it is the current state of affairs in India.
click here for more funny comments

NDA job scam: CBI grills ex-commandant

NDA job scam: CBI grills ex-commandant for 10 hours
Pranav Kulkarni , SushantKulkarni : Pune, Tue Sep 18 2012, 00:52 hrs
The Central Bureau of Investigation (CBI) on Monday grilled Lt Gen Jatinder Singh for 10 hours in connection with the alleged recruitment scam that had unseated him in July from the post of National Defence Academy (NDA) commandant.
Now attached to the Army Headquarters as a staffer to the Deputy Chief of Army Staff, Lt Gen Singh arrived at the CBI office in Pune at 10 am in a Pune HQ Sub Area car and emerged at 8 pm through a backdoor in a bid to evade reporters. CBI sources said he will be called again at 10 am Tuesday.
Rajkumar Vahtkar, superintendent of the CBI-ACB, confirmed that Lt Gen Singh was questioned in connection with the case on Monday morning. He refused to divulge details.
The alleged scam involving recruitment of class ‘C’ employees had come to light in June last week. His staff officer Col Kulbir Singh and Physical Training Officer (PTO) Col A K Singh, besides a civilian staffer and five others who acted as “agents”, have already been questioned by the CBI and are currently out on bail.
Lt Gen Singh was shifted on July 4 after the CBI wrote to Defence Minister A K Antony, seeking his transfer to facilitate an “unbiased probe”.
The CBI had said they recovered Rs 1.76 crore of the alleged recruitment scam money, and that “trails are also being traced” of about Rs 4 lakh Lt Gen Singh’s staff officer Col Kulbir Singh is believed to have handed over to Lt Gen Singh’s brother in a five star hotel in Mumbai on June 23.
“Lt Gen Singh claimed Kulbir Singh had handed over money he had borrowed. Why would the amount be in cash, when his brother had paid him by cheque? Interestingly, we also seized 12 bottles of expensive whisky along with the Rs 4 lakh in cash,” said an officer.
A 7000 sq ft post-retirement bungalow Lt Gen Singh has been constructing at Ambala has also come under the scanner of the agency. The CBI is reportedly looking into various payments made for the house valued at approximately Rs 1 crore. “We are looking into modes of payment for the house. Our teams have carried out searches in Delhi and other places,” said a CBI officer.
Another officer said, “During questioning, we asked Singh about relations between him and his staff officer as well as PTO. He was cooperative during questioning though he opted not to answer many questions. We will be questioning him again on Tuesday.”
When The Indian Express team visited the CBI office in Akurdi, the car was parked outside. Lt Gen Singh was accompanied by his son-in-law, a doctor at the Military Hospital, Pune, and other relatives. Lt Gen Singh tried to evade the Express team. In fact, one of the persons who accompanied him sat in the car, while Lt Gen Singh opted to exit through a back door. One of the persons who accompanied him tried to prevent The Indian Express photographer from taking pictures.
NDA job scam: CBI grills ex-commandant for 10 hours

NDA Scam: Lt Gen Jatinder Singh to be grilled by CBI

Ex-NDA chief to be grilled in job scam
Rajshri Mehta, TNN | Sep 16, 2012, 01.33AM IST
MUMBAI: The CBI will question Lt Gen Jatinder Singh, former Commandant of the National Defence Academy, on September 17 in the recruitment scam.
According to an investigation, Rs 3-5 lakh was allegedly paid in bribe for C-grade posts of as C-grade staff like cooks, gardeners, clerks etc at NDA while Lt Gen Singh was the commandant there. The total bribe amount came close to Rs 1.76 crore. The accused allegedly took signatures of the candidates, who agreed to pay the bribe, on blank sheets and later filled them with correct answers, the investigation said.
The defence ministry granted the permission to quiz Singh after the CBI reportedly reportedly established a "money link", connecting Singh and his brother to the alleged scam. The CBI probe showed prime accused Col Kulbir Singh, also the staff officer to the Commandant, gave Rs 4 lakh in cash to Singh's brother during a meeting in a five-star hotel in Mumbai on June 23. After the CBI arrested six of NDA's employees, including Singh's staff officer, for allegedly taking bribe from candidates appearing for the subordinate jobs, Singh lieutenant general was earlier transferred out of NDA and attached to the Army Headquarters.
Singh declined to comment when contacted by TOI.
The CBI has already questioned Singh's brother who works in a leading corporate house. "He told us Singh took Rs 4 lakh from him which was returned by Kulbir Singh. The money was for building a home in Ambala. It's odd that Singh should take money from a staff officer to repay his brother and that too, in a five-star hotel. Singh took the money from his brother in cheque and paid it back in cash," said an agency official.
Singh will be asked to explain the source of funds for his under-construction 7,000 sq-ft bungalow in Ambala, worth over Rs 2 crore. The agency will ask Singh questions like his powers in approving and preventing any mischief in the recruitment process and action taken on complaints of malpractices in exams.
According to the probe, bribes of Rs 3-5 lakh were allegedly paid for jobs as C-grade staff like cooks, gardners, clerks at NDA while Singh was the commandant there.
Ex-NDA chief to be grilled in job scam
Comment: The commandant is obviously privy to the scam and author of the same. He was cultivating 5 Star Culture and VIP status in the Academy. He should go down in NDA history as a scamster. The law should catch up and confine him in his rightful quarters.

Adarsh Scam: Military Officers who tell lies repeatedly

After former Army chief Deepak Kapoor, another senior officer says Adarsh Society isn't a security threat
Edited by Prasad Sanyal | Updated: July 31, 2012 13:07 IST
Mumbai: After three former Chief Ministers, a number of retired senior army men, including former chiefs General N C Vij and General Deepak Kapoor have been summoned by the judicial commission probing the Adarsh housing society scam.
Former general officer commanding of Maharashtra, Gujarat and Goa region, Lieutenant General (Retd) Tejinder Singh told the two-member inquiry panel today that the high-rise was not a threat to military installations in Colaba, in south Mumbai.
In his deposition earlier this month General Deepak Kapoor has contradicted the Defence Ministry's stand and maintained that the Adarsh building is not a security threat for the nearby defence installation as compared to other high-rise buildings in the area. General Kapoor had given up the Adarsh membership after the news of the scam broke out.
The Defence Ministry has always maintained that Adarsh Society was illegally built on their land.
There are multiple agencies probing the Adarsh scandal, including the judicial commission which was set up by the Maharashtra government after the outcry over the scam. The commission is probing the ownership of the land and whether it was reserved for Kargil War heroes.
The interim report submitted by the commission stated that the land belongs to the state. Three former chief ministers of Maharashtra who have deposed before the panel - Ashok Chavan, Sushilkumar Shinde and Vilasrao Deshmukh - too have maintained that the land belonged to the state.
Mr Chavan is among 13 people who have been charge-sheeted by CBI in the multi-crore scam. He has been charged with cheating and criminal conspiracy for recommending the allotment of 40 per cent of flats to civilians in what was supposed to be a society for defence personnel.

After former Army chief Deepak Kapoor, another senior officer says Adarsh Society isn't a security threat

Enforcement Directorate to attach Adarsh properties
To Gentlemen Military Scamsters Wake Up
You have let down the proud institutions you headed. You have let down your colleagues who must suffer the suspicions you have aroused. You have let down your country that decorated you so much. Worst of all, you have let down that soldier who saluted you day in and day out. You owe him an apology, not just a glib explanation. About others, the less said the better. They occupy some of the most plum posts and yet possess all the integrity of a pickpocket. It is no wonder India has climbed further in corruption ladder. Merely dispossessing these scamsters of their ill-gotten apartment would be no punishment. They need to be dismissed from service and prosecuted for being unworthy custodians of our trust......Sochlo?
Extracted Click here

CSD: Defence canteen products under scanner

The CDA believes that Hygiene is not the only matter of concern. The defence auditor has also objected to the 'arbitrary and opaque' manner of functioning of the CSD, leading to 'poor quality products with little brand value' being supplied to the defence personnel.

Curry, toothbrushes, pasta and whisky are under scrutiny after the Controller of Defence Accounts charged that the canteen did not follow guidelines, including hygiene checks.

Read more: Click here

Gross irregularities in CSD

04 sep 2012
A series of communications between Controller of Defence Accounts and the Defence Ministry reveals how gross irregularities occurred in the purchases in defence canteens across the country.
The exchange of letters between the auditors and Ministry exposes the tough resistance by forces to adhere to financial transparency in canteen purchases, involving thousands of crores per year.
“I am writing to highlight the malady that ails the Canteen Stores Department (CSD) and requires immediate attention. CSD has been held in such high esteem that it is almost sacrilegious to doubt their infallibility. Instead of groping in the dark about the functioning of CSD, which is considered to be a mascot of organised procurement system, an insight will reveal the labyrinthine corruption prevailing in the organisation.
“On the one hand the Government is endeavoring to climb the ladders of transparency, accountability, probity in public procurement process and to enhance public confidence in procurement by introducing the “The Public Procurement Bill, 2012” in Parliament, the system followed in CSD is highly opaque, discretionary, providing high degree of arbitrariness,” said Savitur Prasad, the Principal Controller of Defence Accounts in a communication to several officials of Defence Ministry including the Defence Secretary.
The series of letters between the Auditor and Ministry, obtained through RTI by activist Subhash Chandra Agrawal, says the procurements through nearly half of the vendors are by doubtful methods.
“There are about 600 firms supplying more than 4,000 items to CSD. Almost 200-300 firms provide product whose credentials in consumer market are hardly established. The details of factory inspection and hygiene report be made public by placing on the internet, which may unravel the truth of empanelling such firms.
“It is a travesty of faith that the age old loyalties of defence personnel being stoically dependent on CSD, have been breached by PSC (Preliminary Screening Committee), by introducing product from ineligible firm,” said the auditor of defence accounts.
The auditor has pointed out several malpractices in listing a product and absence of obtaining hygiene certificates for the items sold in canteens.
There are around 34 CSDs across the country and more than 4,500 Unit Run Canteens under it to cater the 17 lakh soldiers of Army, Navy and Air Force and their families.
Two years back, the CAG was allowed to audit CSD accounts after countering stiff opposition from forces. But till date, forces are adamant not to allow the audit by CAG in its 4,500 Unit Run Canteens.
Public Accounts Committee of Parliament headed by Murli Manohar Joshi had directed Defence Ministry to go for the CAG auditing in Unit Run Canteens in December 2011. But till date, forces as well as the Defence Ministry have not yet responded positively to the mandatory directions of the PAC. The Ministry is expected to revert back to PAC by September first week, after having sought postponement of implementation deadlines many a times.-via The Pioneer
Gross irregularities in CSD

Graft flourishing in defence CSD Stores

Graft flourishing in defence canteen stores: Official Himanshi Dhawan, TNN Aug 21, 2012, 03.15AM IST
NEW DELHI: The defense personnel standing guard at the country's border deserve the best. But not everyone appears to agree. The canteen stores department (CSD) run by the defence ministry could be embroiled in gross irregularities in procurement of material that could compromise the health of the armed forces.
Describing CSD as a "labyrinth of corruption" the controller of defense accounts and integrated financial advisor (principal controller) Savitur Prasad has called the procurement system in CSD as "highly opaque, discretionary and providing a high degree of arbitrariness". Through a series of communications the financial advisor has highlighted that procurement and financial norms are being flouted to provide poor quality products to the armed forces. The letters have been accessed through an RTI in response to an application filed by activist Subhash Agrawal.
CSD is the largest supplier of consumer goods and edible products, notably alcohol, for serving and retired defense personnel and their families across the country. The government purchases Rs 10,000 crore worth of material every year and runs about 3,500 units of canteen stores and shops with various military units attached to CSD.
The communication comes to light at a time when the defense establishment is reeling under the impact of last month's CBI raids at its stores in Himachal Pradesh, Haryana and Chandigarh following allegations of irregularities in purchases and distribution.
Prasad in a letter dated May 16 has brought to the attention of the defense ministry, including defense secretary, that of the 600 firms supplying more than 4,000 items to CSD almost 200-300 firms do not have established credentials in the market. The letter lists over 80 companies that are little known in the Indian market but supply their products to the armed forces.
He also points at a system of "introducing" items and then deleting them arbitrarily from the system. In the letter he says, "more number of items have been introduced and deleted than the total number of days available in the last three years." According to the data available, 1,844 items have been introduced in the last three years, while 1,288 have been deleted hinting at irregularities in including and excluding products eligible for procurement arbitrarily.
The letter also indicates that a rule that allows the procurement board to disqualify any firm if it makes sales lower than 2% of its value and volume makes it vulnerable for deletion from the eligible list has been misused.
The executive and financial powers exercised by the CSD unit's general manager in placing orders under the category of special and supplementary orders, "reflects mockery of transparency in procurement process" because the orders are made without approval from financial authorities. This, according to Prasad, is in violation of government orders and guidelines issued by CVC.
Graft flourishing in defence canteen stores: Official

Spurious Stuff from CSD: Health and medical safety of defense forces compromised!

Irregularities in CSD buys under scrutiny by Himanshi Dhawan.

Hi-tech floor wiper is categorized as a manufacturer, which also supplies thandai as brand owner

An “importer” supplying ayurvedic hair oil morphs as a manufacturer supplying ginger cough drops

The Board of Administration cleared 17 food and beverage items for sale at the defense canteen stores without receiving hygiene inspection reports to certify the products
These are just some of the irregularities pointed out by the controller of defense accounts and integrated financial advisor (principal controller) Savitur Prasad to the defense establishment. The communication accessed through an RTI filed by activist Subhash Agrawal indicates blatant violation of the rules and regulations framed for procurement of supplies through the canteen stores department (CSD) that has put the health and lives of millions of defense personnel at risk.
CSD caters to the daily requirements of the armed forces personnel and their families and is expected to provide consumer goods of high quality to the troops at a price cheaper than the prevailing market rates. In order to ensure that service personnel get the maximum range of necessary items with best quality, the Board of Administration (BOA) meets every month to approve items keeping in view the troops’ needs. The annual spending of the public exchequer for these products amounts to Rs 10,000 crore.
Prasad, in a letter in April 19, 2012, has pointed out that the exact opposite of these intentions was happening. As financial advisor he received no communication regarding the factory inspections and hygiene checks for 589 products, which had been cleared by five previous BOAs between December, 2010 and December, 2011.
Referring to the BOA held in March, 2012, Prasad said that 91 items were introduced from 45 firms. Of these, 17 items were in the category of edible, beverage and liquor. “Hygiene reports for none of these reports have been received,” he wrote a month after the BOA had cleared them. Pointing out that a company, S.A.I Brushes, supplied hi-tech floor wiper was categorized as a manufacturer in one section, while the same firm was described as a brand owner supplying thandai, Prasad said, “It is incomprehensible how a wiper manufacturer is also accepted for supply of thandai (which is an edible item), to CSD, that too without factory inspection and hygiene report.”
Citing other examples, the letter said, “It is not clear whether the mandatory condition of hygiene certificate are being fulfilled by obtaining the same from Army Medical Authorities before placing the order, for cases approved in earlier BOAs.”
Recommending a review of all BOA decisions, Prasad wrote that procurement without fulfilling the condition of mandatory hygiene certification was a “serious violation” and could jeopardize the “health and medical safety of defense forces.”
In his defense, BOA chairman and general manager admitted that hygiene inspection reports are delayed. In response to Prasad’s letter Major General R Suresh replied that since the hygiene inspection was a multi-stage process and there were delays it had been decided in a meeting in 1999 that all cases of new introduction, where initial orders had not been placed beyond three months after the date of approval of an item by BOA, would be reviewed by the Board with related reports including factory inspection and hygiene reports. -via The Times of India.
Irregularities in CSD buys under scrutiny

Tatra Mantra: Commission Cheat and Confuse

Tatra asked BEML to do away with agents and offered discount
Press Trust of India | Updated: July 29, 2012 15:17 IST
New Delhi: In its probe in the Tatra truck scam, the CBI has found a 1994 offer letter from Czech manufacturer Tatra expressing willingness for direct collaboration with BEML for supplying completely built trucks at 40 per cent discount on their retail price, on condition to do away with intermediaries.
CBI sources said they have recovered the letter, a crucial evidence, from an official of Tatra offering the deal in 1994 and is now trying to find if there was any sabotage.
They said despite the offer of completely built trucks at nearly Rs. 23 lakh a piece in 1994 directly from the manufacturer, the BEML entered into a deal with Ravinder Rishi promoted Tatra Sipox UK in 1997, which was an intermediary, at much higher rates.
Tatra trucks for Army: CBI likely to question Ravi Rishi again today The agency feels that this act was allegedly at the behest of some interested parties and is investigating this further in its probe, they said.
The sources said India had entered into the truck supply deal with Czechoslovakia-based Tatra in 1986 through its authorised representative Omnipol.
After the division of the country in 1992, the company also got divided between Czech Republic-based Tatra, which manufactured 70 per cent of the truck and Slovakia-based Tatra Sipox which manufactured axles and chasis, they said.
They said close to the division of Czechoslovakia, there was chaos between 1991-94 when there was almost no supply and BEML, without any formal agreement, allegedly started procuring trucks from Venus, a representative of Tatra.
The sources said in the letter the Tatra official also mentions about the "comfort level" BEML enjoyed with Venus, which was an intermediary.
In the proposal, he had offered BEML to enter into a fresh agreement with the company on two conditions - terminate the 1986 agreement with Omnipol and remove any intermediary, they said.
Sources said the proposal was very much in line with the Defence Procurement Rules which said defence purchases should either be through the manufacturer or its authorised representatives and Tatra was insisting to do away with any intermediaries.
The agency, which found this document during one of its searches, is likely to carry out another inspection of BEML facilities in Bangalore, they said, adding that inspection of another BEML facility was carried out this week.
CBI will also be seeking the details of this proposal and other offers from Tatra to BEML through the judicial request it is planning to send to five countries, including Czech Republic and Slovakia, they said.
The sources alleged that despite Tatra not having any formal agreement with Tatra Sipox UK for marketing its product and the latter not being its authorised representative, BEML still chose to enter into an agreement with it in 1997, which was a violation of Defence Procurement Rules.
They said Tatra had entered into an agreement with Venus projects to market its products, while Tatra Sipox UK, claimed to be a representative of Slovak-based Tatra Sipox, they said.
CBI sources said Rishi allegedly gave 50 per cent stake to Venus projects in Tatra Sipox UK to ensure he is able to supply products of both the companies to BEML, which assembled them in India and supplied them to the Army at a premium.
In its judicial request, the agency will seek help from Hong Kong and the United Kingdom on the ownership structure and financial transaction of Venus and Tatra Sipox UK.
Rishi, who is named as an accused in the CBI FIR has denied any wrongdoing in the supply of trucks to BEML.
The agency is probing alleged irregularities in assigning supply from Tatra, with which the agreement was originally signed in 1986, to the Tatra-Sipox UK owned by Rishi in 1997 showing it as Original Equipment manufacturer and the fully-owned subsidiary of the Czech company which was against rules, they said.
Tatra asked BEML to do away with agents and offered discount
Comment: Ravi Rishi is a clued up conman and can beat the Indian Criminal Laws- he is likely to bribe his way out to freedom!

Adarsh Scam: Gen Kapoor trying to save his skin?

KRISHNA KUMAR | MAIL TODAY | MUMBAI, JULY 19, 2012 | UPDATED 09:42 IST
Former army chief trying to save his skin? Gen Kapoor says Adarsh not a security threat
In a significant development, former Indian Army chief General Deepak Kapoor on Thursday said that he didn't believe that the Adarsh building in Colaba, which overlooks a military station, was a security threat. Kapoor said this before the two-member judicial panel that has been formed by the Maharashtra government to probe the Adarsh scam.
This claim made by Kapoor, who retired as the Chief of Army Staff in 2010, is not surprising. He had applied for and was allotted a flat in the Adarsh society building in 2005. According to him, he surrendered the flat in 2010 after the Adarsh scam broke out.
"I am aware that the site of Adarsh building is in the vicinity of the Army area in Colaba. But I did not find out whether construction of a high-rise building so close to an Army installation would be a security threat," Kapoor said.
He went on to add: "It did not occur to me that the building would pose a security threat because there are number of buildings of similar height in the area (in Colaba)."
The former Army chief's statement is at odds with that of the Defence Ministry that has all along been objecting to the Adarsh construction on two grounds: one, that it is a security threat as it overlooks a military installation; second, that the land was in their possession and it belonged to them.
The defence wants to demolish the 31-storey building as it poses a threat and has even filed a petition in the Bombay High Court for this.
Kapoor felt that the local military authority would be in the best position to determine whether a building is a security threat or not. However, he seemed to contradict himself when he said that a number of factors go into deciding whether a building can be classified as a security threat.
"The height of the building, proximity to a sensitive area and ability to overlook into the sensitive area needs to be considered," Kapoor said.
According to the Defence Ministy, Adarsh fulfills all these criteria. It is quite near to the military installation, and being 31-storey high, it also overlooks the military installations.
Read more at: Former army chief trying to save his skin?

NDA Scam: Will Senior Army Officers be investigated?

NDA scam: ‘Col A K Singh gave over a lakh to friend’
Express news service : Mumbai, Thu Jul 12 2012, 04:26 hrs
The Central Bureau of Investigation’s Anti-Corruption Bureau (CBI-ACB) on Wednesday said that of the Rs 74.5 lakh Col Anil Kumar Singh — the presiding officer of examinations at National Defence Academy (NDA) —received as bribe, Rs 1.5 lakh was given to his friend, a retired army officer. Col Singh’s friend in turn used the money to pay his son’s fees in Symbiosis College.
The CBI-ACB told CBI special judge D R Mahajan that at Col Singh’s behest, a witness burnt some documents on June 23 when they had raided the NDA. “Those partially burnt papers have been recovered and CBI wants to decipher the matter written on them,” said CBI special prosecutor Vivek Saxena, while seeking Singh’s CBI custody for six more days. He added that the CBI needs to recover the Rs 1.5 lakh Singh allegedly paid to the retired army officer.
The CBI-ACB also seized a pen drive and Singh’s laptop on Tuesday. “The CBI wants to confront Singh with the data recovered from the them,” Saxena told the court.
Singh’s counsel, S K Jain, objected to the CBI’s demand of extension of Singh’s custody. The court denied CBI Singh’s custody and remanded him in magisterial custody till July 25. “For the purpose of recovery of Rs 1.5 lakh which the accused allegedly gave a witness who paid it to Symbiosis College towards fees, the further CBI custody of the accused is not required,” the court said. The court added that Singh’s custody was not required for confrontation of the accused with the data recovered from the pen drive and laptop.
Singh immediately tendered his bail application, which will be heard on Thursday along with that of the other four accused — Col Kulbir Singh, staff officer to NDA commandant, Balkrishna Kanojia, a food stall owner, Kanojia’s employee Vishnu Prasad Sharma and NDA employee Ramesh Gaikwad.
Col A K Singh gave over a lakh to friend
Comment: The commandant Lt Jatinder Singh is responsible for the scam. He and his family financial dealings for the last five years must be investigated to get to the bottom of this scam.