CSD goods finds its way to civil shops

Army stores goods surface in open market
TNN Aug 30, 2001, 01.20am IST
Secunderabad: The shop owners in Secunderabad cantonment -- particularly in Trimulgherry and Lal Bazar -- are selling commodities 'procured' from the canteen stores department (csd) managed by different units of army.
The csd services are for serving defence personnel, retired army personnel and their dependents and civilians who work in defence establishments. some of the shop owners in the cantonment purchase the essential commodities like soap, toothpastes, shampoos and oils on the cards of the defence personnel and sell them at the market rates.
The csd seal can be seen on the commodities sold by the shop owners at Trimulgherry and Lal Bazar. goods like fans, suitcases, pressure cookers, mixer grinders and stoves are purchased from the csds at subsidised rates and sold in the open market in Secunderabad cantonment. the central csd depot of the army at Trimulgherry supplies the commodities to more than 50 csds in the cantonment. As the difference between the market rate of a commodity and the subsidised rate at the csd is nearly 25 per cent, shop owners who sell them get a good profit. the supplies department of the army conducted raids on several csds in July. in the raids, the canteen cards with names included unauthorisedly were recovered.
The army personnel also caught middlemen delivering the goods from csds to shop owners and left them with a warning. Army stores goods surface in open market

Ghost distributors of Reebook India siphon off Rs 870 crores

Reebok India case: Corporate mismanagement led to scam
New Delhi, Sep 23, 2012, (PTI):
Agencies probing the alleged Rs 870 crore corporate fraud in the operation of Reebok India have detected a systemic "mismanagement" in the business planning and running of the company reportedly done by some of its officials and employees.
Three different agencies -- the I-T department under Finance Ministry, the Serious Fraud Investigation Office (SFIO) under Corporate Affairs Ministry and the Economic Offences Wing of Gurgaon police -- have recorded the findings almost four months after a criminal case was filed by Reebok India against two of its former employees.
"The governance and operations in the company were mismanaged. The bills were inflated and not recorded correctly. So, the probe clearly indicates that it was not a corporate scam in the apparel manufacturing firm but it was non-adherence to the rules and guidelines of business procedures in the firm," sources privy to the probe said.M
The guidelines under the Companies Act were violated which is suspected to have led to other contraventions like tax evasion, they said.
The I-T which has indicated to an alleged Rs 140 crore tax evasion in the case, the sources said, will now work to ensure that the company, later, does not claim any "bad debt".
A bad debt is that amount that is owed to a business or individual and has to be written off by the creditor as a loss because the debt cannot be collected because of a host of reasons.
"There were no serious borrowings or lendings of Reebok India. The probe agencies investigation will make sure that the firm does not qualify to claim bad debt from anywhere in the later course," they said.
Probe agencies have also found that some of the officials of the company could have been involved in the inflation of bills and over-valuation of the goods of the firm.
In the much publicised criminal complaint filed at the Gurgaon police's Economic Offence Wing in May, Reebok India had alleged that its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat were involved in a Rs 870-crore fraud by indulging in "criminal conspiracy" and "fraudulent" practises over a period of time.
Gurgaon police had some days back arrested Singh and Bhagat along with three others -- Sanjay Mishra, Prashant Bhatnagar and Surakshit Bhat.
Singh and Bhat were booked for fraud, criminal conspiracy and other charges under IPC for allegedly siphoning off the sportswear company's money by creating ghost distributors across the country and generating forged bills over the last five years.
While the I-T is scrutinising documents related to accounts and imports of the firm, the SFIO is probing the entire governance affairs of the company under Section 235 of the Companies Act.
According to sources, the probe agencies also do not rule out the culpability of accounting officials of the firm at this stage for their "deliberate" or "mistaken oversight" in account books which led to the alleged financial irregularities.
Reebok India duped Rs 870 crores
Comment: Reebok is an American-inspired, global brand that creates and markets sports and lifestyle products built upon a strong heritage and authenticity in sports, fitness and women’s categories. Right now they are learning lessons of Fakes, Business Ethics and Fraud!

Indian Army launches campaign for ex-servicemen

Indian Army launches campaign for ex-servicemen
Lucknow: The Indian Army on Tuesday launched a campaign aimed at deepening its respect for aged and retired soldiers.

The army's Central Command launched the "Year of the Veteran" campaign in the presence of several ex-army men and serving officers.
They were drawn from Uttar Pradesh, Bihar, Uttarakhand, Madhya Pradesh, Odisha and Chhattisgarh, an army official said. Lt Gen Anil Chait opened the event.
With over 300,000 ex-servicemen, the officer said two pilot projects had been taken up.
So far 911 complaints regarding issues like housing and pension have been registered with the army.
In the first phase, an officer said that army teams had fanned out in villages to obtain data about the problems faced by ex-servicemen.
Indian Army launches campaign for ex-servicemen

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

Armed Forces Tribunal will be under Law Ministry

Paralyzed armed forces tribunal. notice to ministry of defence Kudos to Navdeep Maj Navdeep Singh who clarifies the status of the Paralyzed AFT
Armed Forces Tribunal will be under Law Ministry
Clash of interests is being cited as the main reason why this tribunal must be removed from under the Ministry of Defence.
SUMAN SHARMA NEW DELHI | 9th Sep 2012
he Armed Forces Tribunal (AFT) is all set to come under the Ministry of Law, instead of its parent body, the Ministry of Defence. The Supreme Court gave a directive to this effect in 2010 as it felt that the MoD could influence the tribunal's judgements since the latter dealt with decisions pertaining to the ministry. To ensure that fair judgements were given, the Supreme Court, in fact, directed that the administrative control of the AFT and all other tribunals should not be under their parent ministries. It recommended that the tribunals should be placed under one single nodal department, preferably the Department of Legal Affairs.
The SC directive has been under consideration ever since. But the matter got a fresh lease of life with Law Minister Salman Khurshid's recent statement in Parliament that the government was looking at the possibility of removing these tribunals from under their parent ministries and putting them under the Ministry of Law.
Clash of interests is the main reason why these tribunals need to be removed from under their parent ministries. To give an instance, the members comprising the AFT use the various facilities offered by the MoD, but are also required to pass orders against the ministry in the cases coming to them. An RTI query by a retired army officer revealed that the MoD funded AFT chairperson A.K. Mathur's foreign trips worth lakhs of rupees. The AFT also makes use of the infrastructure offered by the MoD to function: the land on which the AFTs are constructed is given by the MoD. The ministry gives the AFT members facilities such as the CSD (Canteen Stores Depot) cards. These are canteen cards that can be used to procure grocery and other household items at subsidised rates from all military canteens.
A senior retired army officer working as an administrative member at one of the AFT benches told this newspaper, "The AFTs should be under the Ministry of Law so that they can give fair judgements. Litigants are always afraid that fairness will go missing as the AFTs function from MoD land and do not have their own premises. Funds for the AFTs are also sanctioned through the MoD. The CSD cards given to the members are actually a privilege."
The Armed Forces Tribunal enjoys the status of a High Court, and came into being in 2009. Each court consists of a judicial member and an administrative member. The administrative member of an AFT is always a retired senior officer, usually a three-star officer. A source told this newspaper, "These retired officers usually know the applicants approaching the Tribunal. This increases the chances of the Tribunal's decisions being influenced. So their decisions are unlikely to be fair. This debate to delink the AFT from the administrative powers of the MoD has been going on for a long time."
Armed Forces Tribunal will be under Law Ministry

Curbs on military canteen booze flow

Curbs on military canteen booze flow
Rajat Pandit, TNN Mar 21, 2012, 01.50AM IST
The move comes in the backdrop of CAG reports and parliamentary committees criticizing the widespread irregularities in the working of the 35 CSD ( canteen stores department) depots, which have a retail network of 3,600 URCs (unit-run canteens) and a turnover of over Rs 8,500 crore.
The new measures include restricting the number of Scotch bottles an officer can draw to 50% of his monthly liquor quota. Major-generals and lieutenant generals will get only seven to eight Scotch bottles in their existing monthly quota of 14-16 bottles.
Similarly, colonels and below will get five to six Scotch bottles in their 10-12 bottle quota. Field Marshals and equivalents and serving and retired Service chiefs, of course, can draw all the liquor they want since they have "no limit".
More importantly, there is a move to "limit" the liquor quota under the "bronze cards" that are used by URCs and others for bulk purchases. "This is the main source of misuse. If the ceiling limit in a bronze card was earlier 10,000 bottles a month, it will be brought down to 1,000," said the source.
Several cases of widespread diversion of the much-cheaper military quota liquor secretly reaching the open market have come to the fore, leading to the court-martial of several senior officers, including a major-general, in recent years.
A performance audit of CSD by CAG had also found that several units were drawing liquor far in excess of what was authorized based on the number of soldiers and ex-servicemen connected with those units.
There is also the move to restrict the sale of cars through CSD, which are about 10%-15% cheaper than market prices. "I recently bought a Honda City through CSD since it cost Rs 1.25 lakh less," said an officer.
If earlier an officer could buy a car through CSD every two years, the new policy restricts it to once in five years. Similarly, JCOs (junior commissioned officers) will be able to buy a car once every 10 years that earlier could be done every five years.
Curbs on military canteen booze flow
Restrictions
Unit Run Canteens management will ensure attractive items are sold only toauthorised personnel as on required basis on not in excess quantity. Strict watch bemaintained where there is large difference in CSD and market rates such as suitcases,watches, pressure cookers, fans and other attractive toiletry and cosmetic items. Profile of customers be strictly watched for spending beyond means.
Monetary limit for all ranks- Purchase of CSD items
Comment: This is a welcome measure. There is gross misuse of CSD facility and the items find its way into the civilian market. Liquor is being openly sold in metro cities. Culprits make around Rs 5000/- (families too get involved in the racket) and more a month profit on one individual canteen card. Liquor is traded and bartared for services. Officers serving and retired must set an example. "Just buy quantum of liquor/ grocery one consumes" only must be the mantra. All Officers who draw their full quota in one go need to be monitored as it is certain that they are selling or bartaring the liquor. Once Officers set an example than JCO's and Jawans will follow the good example. Military personnel and families who have multiple canteen cards and posted in the same station are more prone to misuse the facility. Chennai and Punjab leads in misuse of canteen facilities. Ingenious methods have been evolved to cheat the system. Items are openly traded in civilian shops... and liquor more clandestinely and surreptiously smuggled. In the digital era software can be designed to give the correct picture of those who misuse canteen facility and warnings issued to the offenders electronically with the usage of smart card. This automation will deter offenders from malpractise (no email id no smart card- initially this can be done for Officers and then extended to JCOs and Jawans)). It is important to embed email of all users in the smart card. Once this is done be rest assured that the misuse will reduce tenfold and will vanish in year or so.

AHQ CSD Liquor Smuggling: MOD, Civil Staff and Politicians

Who else is the beneficiary of CSD Liquor?
By Maj Gen Chander Nandwani
Issue: IDR Net Edition | Date: 11 May, 2012
Way back in 1995, I was posted as Additional Director General of Supplies & Transport in Army Headquarters. Apart from my routine responsibilities, I was also given additional charge of managing Army Headquarters (AHQ) canteen, as its Chairman. It wasn’t much of a prized post, since a retired Colonel appointed as the Canteen Manager with around 50 to 60 civilian employees working under him, was essentially accountable, for the day-to-day functioning of the canteen.
Therefore, my area of focus would be to strictly monitor the indenting and sale of such items. For this purpose, computers would be installed in the canteen and sale of liquor strictly regulated through issue of new cards after due verification of the cardholders. Soon after taking over the additional responsibility, I decided to pay a visit to the AHQ canteen during the lunch hour break to get a ‘Feedback’ from the employees with regard to their working conditions as also motivate them to provide better service to the customers. After patiently listening to their woes and giving ‘on-the-spot’ decisions to improve their working conditions, I made a remark that while being posted at Delhi on three earlier occasions, I had never patronized AHQ canteen, as more often than not, all the attractive consumer items including popular brands of liquor were seldom accessible to the customers. Therefore, my area of focus would be to strictly monitor the indenting and sale of such items. For this purpose, computers would be installed in the canteen and sale of liquor strictly regulated through issue of new cards after due verification of the cardholders. Further, the existing liquor cards in use would be discontinued straightaway and destroyed.
The next day, all hell was let loose against me. Big posters were pasted at every nook and corner of Sena Bhawan and South Block, making serious allegations against me. Radhe Shyam (name changed), a labourer and the union leader of AHQ Canteen civilian employees, having three buses and two flats in Delhi, threatened that there would be ‘Mass Joint Self Immolation’ by all employees at Jantar Mantar on the Republic Day (due after 10 days or so), if Maj Gen Chander Nandwani was not immediately removed from the post of Chairman of the canteen. News items on similar lines were also published in the reputed national dailies. The allegations made against me included taking of a big bribe for purchase new computers, favouring purchase of specific liquor brands, coercing women employees for sexual favours and so on. I was particularly tickled by the allegation of sexual favours and cheekily informed my wife that surely my standing in this regard was now far better than what she had imagined during past several years of our married life!!!
I was immediately summoned by the Quarter Master General (QMG), under whom the canteen functioned, and was asked to brief him on this sudden turn of events when everything was going on so smoothly before I took over the charge of the AHQ canteen. I requested for a couple of days time to make discreet enquiries. Before I could say ’Jack Robinson’, there was a note from the MOD signed by a Director level officer asking the Chief of Army Staff (COAS) to comment on the allegations made against me and take all possible measures, including removing me from the post of Chairman, to avoid any embarrassment to the Govt., should the threat of ‘Mass Self-Immolation’ materialize, just prior to the Republic Day. What a joke! The matter did not end there. This note from MOD was followed by another note through which, a memorandum signed by 13 MPs and addressed to the Defence Minister, was also forwarded to the COAS, urging him to remove me from the post. This raised the hackles of the then COAS, late General BC Joshi. He called the QMG to his office and asked him to take the matter very seriously and put up a draft reply to both the notes of the MOD, for his approval. In the meanwhile an interim reply was sent to the MOD that the matter was being investigated.
My preliminary investigations revealed that a perfect nexus existed between the canteen civilian staff union leader Radhe Shyam, a few officials of MOD and a large number of politicians, to whom liquor was being supplied from AHQ canteen, on a regular basis. Of course the demand increased manifold during the time of elections. What intrigued me the most was the ‘modus operandi’ of smuggling out of such large quantities of liquor, with the Military Police and several other security agencies working in the highly sensitive areas of Army Headquarters and MOD. The actuality came to light when a disgruntled ex civilian employee of the canteen spilled the beans to me on promise of strict anonymity. I was shaken out of my bones when the truth came to light and immediately ran to the office of QMG to give him the details. He dis-believed me and decided to get the facts verified through a field security agency of the army and learnt to his horror that what I had disclosed to him was the truth, the whole truth and nothing but the truth.
The court of Inquiry proved these allegations to be false, baseless and malicious with the sole aim of having me removed from the post due to ulterior motives.
Well this is how the system worked. The union leader had in his custody hundreds of old liquor cards of servicemen and/or ex-servicemen who had either left the station or had died. He drew choicest brands of liquor from the canteen in the names of these personnel and had simultaneously perfected a distribution system through which the liquor was delivered right at the doorsteps of the selected MOD officials and several politicians apart from other influential clients in the ministry. Surprisingly, right next to the AHQ canteen was the parking lot of VIP staff cars and some of these staff car drivers had been bought over by Radhe Shyam by giving them free bottles of rum and other lucrative canteen items such as expensive watches etc. During the lunch break when security was lax, these drivers would reverse their cars next to the canteen bulk store, wherefrom crates of liquor were loaded into the dickey of these staff cars. Radhe Shyam instructed these drivers to deliver the liquor crates at various locations after dropping the VIPs at their respective residences. Wow what an ingenuous idea! The irony of the matter is that the staff cars with the flags & star plates of Generals, Admirals and Air Marshals (including the QMG), without the knowledge of the occupants, were being illegitimately used by unscrupulous individuals for their unholy deeds. Sadly these very senior officers had unknowingly become couriers of liquor for the politicians. No wonder there was such a sharp reaction from all quarters, when I had only hinted at introducing computers to check the sale of liquor from the AHQ canteen!
The Chief on being informed of the facts of the case directed the QMG to give me full protection and total support to cleanse the system. I obtained legal advice from a leading civilian lawyer. He advised me to request for an enquiry against myself since I had taken over the post barely 10 days earlier and had nothing to hide. Thereafter, on my specific request on file, a court of inquiry was ordered by the QMG to investigate into the allegations made by Radhe Shyam, which were supported by the MOD and the MPs. The court of Inquiry proved these allegations to be false, baseless and malicious with the sole aim of having me removed from the post due to ulterior motives. To avoid several heads from rolling, the MOD and the MPs were politely told by the then COAS verbally that the matter had been thoroughly investigated by a high-powered court of Inquiry, which had opined that there was no truth in the allegations made by the union leader. Hence the matter was not being pursued further to save all concerned from grave embarrassment.
On directions of the QMG, the services of the union leader were terminated under my signatures and the whole system revamped with the introduction of computers, thus bringing to an end the sordid drama of “The Canteen Liquor Connection of MOD!”
My only regret still remains that the allegation of my so-called sexual exploits with women employees was also quashed in the bargain, thus proving the obvious!!!
Who else is the beneficiary of CSD Liquor?
Comment: We need officers with courage and guts like Maj Gen Chander Nandwani to take on the growing corruption in CSD. Even officers in staff college use liquor for bartering with servants and for other services. The malaise is much more deep routed than in 1995...

Alcoholic Ex Servicemen kills his wife

Retired army officer missing after allegedly killing wife
How did the 'clerk' become an 'officer'! Was he an SL commission officer?
Mumbai: In a shocking incident in surburban Mumbai, a retired army officer, Mahipal Singh, killed his wife at their residence in Kalina Military Camp.
Click here to read more

Man used skills taught in army to strangle wife
By: Saurabh Vaktania Date: 2012-03-16 Place: Mumbai
Autopsy reports state former army man Mahipal Singh choked his spouse by applying pressure with his thumbs -- one of the most basic lessons taught in training
AN army officer who is suspected to have killed his wife and is on the run used the oldest self-defence tactic to murder his spouse, autopsy reports reveal. According to the police, the accused Mahipal Singh choked his wife Anju's throat by applying pressure with his thumbs.
On the lookout: Cops have been combing the local bars in the area as Mahipal Singh is an alcoholic, and is likely to haunt such places.
Authorities say it is the oldest technique in self-defence training and is one of the basic lessons taught during army training. "We have found a thumb impression of the accused on the deceased's throat. It is clear that Singh choked the victim," said an officer from Vakola police station.
On Tuesday evening, army officials from the military camp in Kalina called up the Vakola police to inform them that Anju Kanwar (35), wife of a defence security personnel Singh (40), was found dead at the residential quarters in the campus.
Their 9-year-old son found Anju's body at 6 pm after he returned home from school. The post-mortem report states that the time of death was 2 pm.
The Vakola police have formed a special team to track down Singh. Officials from the Crime Branch and Special squad (west region) are also on the lookout for Singh. One of the officers told MiD DAY that they were looking at all bars around the area, as Singh is a drunkard. Investigators suspect that Singh has fled to Goa.
Meanwhile, Anju's family members arrived from Rajasthan and have taken custody of the body following the post mortem and are also caring for the young son.
A Mid Day Report

Readers responses

Haridas Mandal (13:15:56): And still army issues cheap liquors from it’s 4500 Unit Run Canteens just to earn 1000 crore a year to celebrate 365 days a year in the name of Raising Days, Founder’s dayS, Kargil Days, Bangladesh war days etc etc and end up making its officers as well as jawans permanently addicted to liquors. Will some body from the Medical Council of India will stand up and comment on the very efficacy of issuing freely available cheap liquors to serving troops, to the ex-serving troops and even to their equally addicted widows?

I cannot but agree on this point. I wish all serving/ retired officers take up this point from here. Military service has converted a large percentage of raw recruits to Alcaholics simply through easy and cheap availability of liquor. A few who do not drink, got into the habit of selling their quota to Civilians for a profit. This is true of even very senior officers! Corruption begins right here! What is the logic of a widow of an ESM/ ESO drawing liquor from Canteens? An excellent point to ponder!

Amarinder promises one rank, one pension to ex-servicemen

PTI | Jan 15, 2012, 07.18PM IST
MEHALKALAN: With Punjab going to polls on January 30, state Congress President Amarinder Singh on Sunday promised to ex-servicemen that he will ensure that the one rank one pension scheme was introduced.

He said, he had already taken up the matter with the Central Government and hoped it will be implemented soon.

Addressing a function organised by the Punjab Chapter of the Indian Ex-Service League here, Amarinder, himself an ex-army man, regretted that "some bureaucrats sitting in Delhi who had no idea as what it meant to be a soldier were trying to put hurdles in the implementation."

He appealed to the ex-servicemen to help and support the Congress in the forthcoming assembly elections in Punjab.

He said, ex-servicemen are pride of Punjab but unfortunately they have not received their due after retirement or leaving the services of the armed forces.

"An important step in this direction has already been taken with the Rajya Sabha Committee on Petitions having recommended one rank one pension scheme," he said, while adding, Congress was committed that the rights of ex-servicemen are protected.

He said, the party will pursue with the Central Government for 100 per cent implementation of One Rank One Pension scheme which will benefit 8 lakh ex-servicemen of Punjab.

Among other things he promised included that ex-servicemen would be exempted from paying toll-tax on the state highways to be constructed on Public Private Partnerships basis, every effort shall be made to remove anomalies of the 6th Pay Commission for Defence Personnel and VAT on all CSD items will be exempted.
Amarinder promises one rank, one pension to ex-servicemen

Malpractices in the supply chain management of the Army

Army ration supply practices rotten: Public Accounts Committee
The Hindu: Special Correspondent
In certain cases troops consumed dry rations 6-28 months after expiry
Pointing out that the Army marches on its stomach, the Public Accounts Committee of Parliament has taken exception to its ration supply chain practices and cited several “glaring deficiencies and inadequacies.”

Observing that in certain cases dry rations were consumed by troops even 6-28 months after the expiry of their normal Estimated Storage Life (ESL), the PAC in its report, tabled last week, recommended that the authorities revisit/amend the existing provision of the Army Service Corps technical instructions to ensure that food items were issued in accordance with their ESL.

As for fresh vegetables and fruits, 74 per cent of these items issued to the units by the supply depots were not in accordance with the prescribed norms.

Citing “serious anomalies in receipt and supply of vegetables in one station alone,” the PAC said the Northern Command rations worth Rs. 1.92 crore remained untraceable as on March, 31, 2008. A test check reflected “deep-rooted and widespread malpractices in the supply chain management of the Army.”

Observing “shortcomings” in the procurement procedures of the Army Service Corps, it noted highly non-competitive procurement of fresh rations and deviation from the laid down guidelines.

Deploring the mismatch between the issue and receipt of rations, the PAC said it was inconceivable that such things could happen “without the complicity of officers” concerned.

In another report on the Canteen Stores Department (CSD), the PAC took a serious view of the Army Headquarters denying auditors access to the accounts of the Unit Run Canteens (URCs), which recorded an annual turnover of Rs.8,500 crore during 2008-09.

Noting that the Comptroller and Auditor-General was unable to audit the 3,600 URCs, the report said this restricted parliamentary oversight to the CSD.

The CAG has been seeking to audit the URCs' accounts on the ground that the CSD transfers money from the Consolidated Fund of India in the form of qualitative discounts. But the armed forces are opposed to the move, claiming that the URCs are run with a non-public fund.

“The Committee is dismayed to note that Audit was denied access to records of the URCs by the Army Headquarters in spite of repeated requests…What is more intriguing is the fact that such denial was made despite the directions of the Defence Ministry to make records of the URCs available for audit.”
Army ration supply practices rotten: Public Accounts Committee

PAC smells scam in army canteens after audit denial

India Today, Updated: 29/12/2011
The PAC also claimed that the ration supply chain was in a mess after the CAG highlighted several discrepancies in the system and cartelisation of suppliers.
New Delhi: A parliamentary panel has come down heavily on the army for not allowing audit of the unit-run canteens (URCs) while taking serious note of malpractices in ration supply for the troops.

The Public Accounts Committee (PAC), which had gone into the findings of the comptroller and auditor general (CAG) highlighting that the jawans were being fed food items past the expiry date, has given wide-ranging recommendations to streamline the supply chain management of rations in the Indian Army.

But the decision to not allow the URC audit was fiercely defended by army chief General V.K. Singh when he, along with senior defence ministry officials, appeared before the committee. There are 3,600 URCs in the country with a turnover of over Rs.8,500 crore.

The committee said it was "dismayed" to note that the audit was denied access to the URC records by the army headquarters in spite of repeated requests on the ground that the canteens were being run from a non public fund.

The panel stated that the army resisted attempts to get the URCs audited overlooking the defence ministry's directions. "We fail to understand how the URC audit will be so intrusive as to have an adverse impact on troop morale," it added. PAC chairman Murli Manohar Joshi said these facilities, running on government land and by government employees, should be audited. All the three services had opposed the move.

The PAC also claimed that the ration supply chain was in a mess after the CAG highlighted several discrepancies in the system and cartelisation of suppliers. The committee backed the CAG findings, saying 74 per cent of fresh vegetables and fruits issued were not in accordance with the prescribed norms. The troops were being supplied food items even after their expiry date.

The panel expressed surprise that these dry rations were consumed by troops even six to 28 months after the expiry date.
PAC smells scam in army canteens after audit denial
PAC finds widespread malpractices in Army rations

Surfers' Comments
Posted by: A K SAXENA
DELHI | December 29, 2011
Corruption in Indian army canteens (URC) is an open secret. Let the Army Chief face the stark reality, not run away from it. Resisting URC scrutiny by the statutary Auditor by the army chief, raises strong suspicion against unethical practices. Transparency will boost the morale of the armed forces.

Johnnie Walker Addict- thank Indian Babus?

Johnnie Walker maker in India bribery bottle
SAUMITRA DASGUPTA
Mumbai, July 28: Diageo, the world’s largest liquor maker, has been charged by the US market regulator with paying bribes worth more than $1.7 million (almost Rs 7.5 crore) to government officials in India between 2003 and 2009 to push sales of its famed Johnnie Walker Scotch whisky.
The SEC investigators detected improper payments by Diageo worth more than $2.7 million to government officials in India, Thailand and South Korea — with more than 60 per cent of those illicit payments going to mostly small-time Indian babus.
In an order issued tonight to settle administrative proceedings against the liquor giant, the SEC said Diageo had made the payments to obtain lucrative sales and tax benefits relating to its Johnnie Walker and Windsor Scotch whiskies, among other brands. Johnnie Walker is the biggest-selling Scotch whisky brand in India.
Diageo has agreed to pay more than $16 million to settle the SEC’s charges.
Without admitting or denying the findings, Diageo agreed to cease and desist from further violations and pay $11,306,081 in disgorgement, a pre-judgment interest of $2,067,739, and a financial penalty of $3 million.
Diageo, which operates in 180 countries, has brands like Johnnie Walker, Smirnoff, J&B, Baileys, Captain Morgan, Tanqueray and Guinness in its product portfolio.
“For years, Diageo’s subsidiaries made hundreds of illicit payments to foreign government officials,” said Scott W. Friestad, associate director of the SEC’s division of enforcement. “As a result of Diageo’s lax oversight and deficient controls, the subsidiaries routinely used third parties, inflated invoices, and other deceptive devices to disguise the true nature of the payments.”
The SEC order says the Indian officials were responsible for purchasing or authorising the sale of alcoholic beverages in India.
The order said Diageo and its subsidiaries had failed properly to account for these illicit payments in their books and records. Instead, they concealed the payments to government officials by recording them as legitimate expenses for third-party vendors or private customers, or categorising them in false or overly vague terms.
In some instances, they failed to record them at all. Diageo lacked sufficient internal controls to detect and prevent the wrongful payments and improper accounting.
In India, the illicit payments were made through Diageo’s wholly owned indirect subsidiary called Diageo India Pvt Ltd, which is based in Mumbai.
The SEC investigators found that Diageo — through Diageo India — engaged in a “pervasive practice of making illicit direct and indirect payments to government officials through India to obtain and retain liquor sales”.
Between 2003 and June 2009, Diageo India paid an estimated $792,310 in improper cash payments through its third-party distributors to 900 or more employees of government liquor stores in and around Delhi.
Johnnie Walker maker in India bribery bottle

Defence scam: Demystifying Unit Run CSD Canteens

CAG’s right to probe the way public funds were being handled was questioned. Then, it found that considerable sums of money — about Rs. 80 crore per year — went missing from the system. And that there was resistance to the idea of accountability.
The large network of 3,600 Unit Run Canteens (URCs) are given soft loans at subsidised rates of interest (4.5-6.5 percent) from the Consolidated Fund of India via the CSD for setting up retail outlets and stocking up.
All of them function from government premises, which are made available to them free of cost. Transport of goods is done by defence vehicles using service personnel.
Considerable amount of Central government funds are provided to the URCs every year from the budgetary provisions of CSD by way of quantitative discount. A proposal for disbursement of quantitative discount for 2008-09 to the tune of Rs. 200 crore is under consideration. In order to have a better view on the overall services being provided by CSD to the URC, it is imperative that the audit personnel of DGADS are allowed to have access to information maintained by the URCs.”
But CSD officials maintained that the outlets are managed primarily as a regimental institution. Further, that the Commanding Officers are solely responsible for their functioning and financial aspects are audited by various internal audit boards as well as registered chartered accountants.
But the CAG pointed out that the trade discount given to the outlets was never passed on to the consumer. This adversely affected the CSD’s profitability and therefore government revenues. Since 50 percent of the CSD profit should accrue to the government, treating the discount given as a charge to the trade understated the profit and thereby deprived the government of revenue worth hundreds of crores.
To top it all, CSD doled out grants given out of its profit to various organisations without even insisting on application for funds. Utilisation certificates were never insisted on from major recipients, namely army, navy or air force, for the grants provided.
The CAG discovered other anomalies in the course of its audit. For instance, that the “base depot had not shifted to the new location even after 13 years of taking over the land at Taloja (Navi Mumbai) and continues to occupy the premises leased by the Indian Navy from Mumbai Port Trust. Not only this, rates of transportation paid by the base depot for ferrying of stores to other parts of the country were exorbitantly high compared to the rates set by Mumbai sub-area”.
Moreover, several units under the jurisdiction of five area depots were drawing liquor in excess of that authorised on the basis of the strength of the unit. CSD and the army authorities allowed excess withdrawal of concessional liquor worth Rs. 7.82 crore, the market value of which was Rs. 19.45 crore.
CAG has now suggested that URCs should be recognised as retail outlets integral to CSD and its operational results should be disclosed in CSD accounts. But right now, the armed forces seem reluctant to loosen their grip, irrespective of the fact that the exchequer is losing hundreds of crores. -via Tehelka
Cheap booze comes with a price
Comment: The Military needs to come clean on this perpetuating scam. All URC accounts must be a open book and audited by CAG. This will reduce sycophancy, corruption and primarily set right the flawed ACR system which presently encourages promotion of corrupt officers.

Army holds ex-servicemen rally

DARHAL: An ex-servicemen rally wаѕ organised fοr thе benefit οf ex-servicemen οf armed forces frοm Rajouri District οn Sunday аt Government Boys Higher Secondary School Darhal bу a Rashrtiya Rifles Battalion under thе aegis οf Sector Rashtriya Rifles аnԁ Counter Insurgency Force, Romeo.
Approximatly 500 ex-servicemen attended thе rally. Students frοm Government Higher Secondary School Darhal presented a cultural programme аѕ a mаrk οf respect tο ex-servicemen.
Thе rally wаѕ inaugurated bу Commander Sector Rashtriya Rifle. Eminent personalities frοm civil administration whο graced thе rally include Vijay Kumar, IPS DIG Poonch Rajouri, Raj Kumar, SDPO Rajouri, Maj (Retd) R.S Thakur, Secretary Zila Sainik Welfare Board, Rajouri, representatives frοm Ex-Servicemen Contributory Health Scheme Rajouri, Defence Pension Disbursement Office, Fishery Department, KVIC аnԁ nationalised banks. Thеу addressed thе ex-servicemen аnԁ informed thеm аbουt various welfare activities whісh thе government hаѕ ѕtаrtеԁ fοr thеіr benefit.
Alongside, a medical camp wаѕ аƖѕο organised wherein five army doctors including, surgical specialist, medical officers аnԁ a team οf six civil doctors provided healthcare advice аnԁ free medicines tο thе ex-servicemen. A dental detachment wаѕ аƖѕο available tο treat thе dental cases.
An Ex-servicemen Contributory Health Scheme counter, CSD Smart Card counter, CSD аnԁ Non CSD counter wеrе аƖѕο established аt thе rally site fοr thе benefit οf ex-servicemen. A grievance cell tο register thе grievances аnԁ problems οf ex-servicemen аnԁ аn information cell primarily tο provide multifarious information tο thеm wаѕ аƖѕο established аt thе site.
On thе occasion sixteen Veer Naris wеrе аƖѕο felicitated whose husbands hаԁ sacrificed thеіr lives fοr thе country. Overall thе rally wаѕ a ɡrеаt success wherein thе ex-servicemen wеrе apprised οf numerous schemes/projects conceived fοr thеіr welfare.
Army holds ex-servicemen rally

CDA arm twists top brass for Unit Run Canteens

Dear Editor
what almost all of us know that armed forces personnel are entitled to CSD facilities. Armed forces personnel by definition are those men/women in uniforms in three services namely the Army , Air Force & Navy.
Eligibility criterion though not in black and white had since been diluted. Civilian central govt employees paid out of Defence Estimates have been allowed to draw CSD stores less liquors from the unit run canteens.
Arm twisting the top brass in the armed forces CONTROLLER OF DEFENCE ACCTS whose employees are paid out of CIVIL ESTIMATES are running 38 URCs ( UNIT RUN CANTEENS) in the govt accommodations for their employees.
Neither the central govt civilian employees (the CDA STAFF) are eligible for CSD facilities NOR controllers of defence accounts authorised to run 38 URCs (unit run canteens). Total sale from those 38 Canteens are huge. Profits from sale of CSD goods to unauthorised personnel is also very very large.
Secondly CDA STAFF/ EST is meant for audit of defence grants and its proper utilisation. By extending the facility to this watchdog has been done surely with a vested interest. Canteen Stores Department ADELPHI Navy Mumbai a solely central govt owned organisation responsible for provision of CSD stores to all the appx 3600 URCs in the three Arms OF THE Military. As a matter of rule URCs unless registered with CANTEEN STORES DEPTT Adelphi, Navy Mumbai cannot receive any CSD goods in its URCs. It is therefore obvious that 38 unauthorised CDA Establishment run URCs have been duly registered though not even eligible for CSD goods. And it obvious such compromise is being exploited by the top brass of three services. Mega scam and scandals in the Defence had therefore been very routine. Huge profits accrued from the sale of CSD goods are then clandestinely distributed amongst the CDA staff proportionate to the salary drawn (thereby giving maximum benefit to the TOP CDA officials). But Who cares!
CSD canteens abused by CDA
Posted in Publishaletter.com By :(Not Verified) haridas mandal
Letter to the Editor Sent to : OUTLOOK
Country: India
Date: APR-29-2010
Subject: CSD CANTEENS ARE MOST ABUSED by CDA

Can Canteen Profits be used for Welfare of Veterans?

Audit finds lapses in defence canteen operations
New Delhi, Aug 13 (IANS) India's audit watchdog has found lapses in financial and business operations and the pricing and quality of goods of the Canteen Stores Department (CSD) that sells household products at cheaper than market rates to armed forces personnel and their families.
The report of the Comptroller and Auditor General (CAG) of India, tabled in the Lok Sabha Friday, says the 3,600 unit-run canteens (URCs), or retail outlets, of the CSD across the country have been kept out of the "purview of parliamentary financial oversight as they are considered to be regimental institutions".
This despite the fact that these URCs get soft loans and quantitative discounts through the CSD from the Consolidated Fund of India, it says.
"Neither the budget documents nor the proforma accounts of CSD reflect the operations of the (URCs) that are also not subject to the accountability regime for operations funded by the Consolidated Fund of India," the report says.The CAG said it was denied access to the URC records by the Army Headquarters in Delhi "in spite of repeated requests".
The matter was taken up at the level of the defence minister too but to no avail.
In the interest of transparency, the operational results of the units should be disclosed in the proforma accounts of CSD after ensuring that the units follow uniform accounting principles, the CAG has recommended.
This would enable the financial statements of CSD to provide a "true and fair view of the complete operations of the organisation".
Praising the CSD for its 55 percent increase in gross turnover (Rs. 6,955 crore in 2008-09 from Rs. 4,481 crore in 2003-04), the report says the gross and net profit however had not shown commensurate increase during this period.
"This was mainly due to increase in cost of goods purchased for sale as also increase in quantitative discount given to the units."
It says that evidence indicated that grants given to various organisations of the armed forces out of CSD profits did not follow the provisions of General Financial Rules (GFR) of the government.
"Grants were given to organisations without even insisting on application for funds. Statement of accounts was never sought before sanctioning the grants. Receipt of utilisation certificates was not watched, as required under GFR. Utilisation certificates were never insisted from major recipients namely the army, navy or air force for the grants provided."
The proforma accounts prepared by the CSD did not follow the generally accepted regimen of financial reporting, it said.
During the six years from 2002-2003 to 2007-08, Rs. 883.46 crore was transferred in the form of quantitative discount from the Consolidated Fund of India to the URCs.
Evidence also indicated that benefit of quantitative discount (QD) has never been passed to the consumer.
"Such discount could not be viewed as a trade discount as units operated in a captive market with pricing determined in accordance with the existing policies. QD was in fact another way of transferring money from CFI to non-public fund without conforming to the provisions of the GFR," the report says.
Audit finds lapses in defence canteen operations
Related Reading
Forces, CAG lock horns over audit of unit run canteens
Canteen Stores Department (India) Demystified

DESL Report: Annual General Body Meeting

Dehradun Ex-Services League Honours War Widow & Gaurab Sainani- Release of News Letter No 18 on Welfare Issues Welfare- Annual General Body Meeting

Annual General Body Meeting of Dehradun Ex-Services League was held on 31 Jul 2011 at 1045 hrs at Gorkhali Sudhar Sabha Hall, Garhi Cantt, Dehradun which was attended by more than four hundred members and Maj Gen Shamsher Singh, MVC, Maj Gen R P Singh, Sh Ganesh Joshi, MLA, Brig KG Behl, President DESL, Brig P S Gurung, YSM Vice President State Minor Committee Commission, Lt Col BM Thapa, Gen Secy, Cols B S Chhettri, RP Jairath, R K Arya, K S Mann, SK Taneja, RC Joshi, CB Thapa, CPO(DR) BK Nautiyal PRO and many others. After two minutes silence on recent obituaries, Brig KG Behl, the PresidentDESL in his opening address, highlighted details of the welfare activities carried out during the year especially about rallies held in support of anomalies in 6th CPC and one Rank one Pension issue taken up with higher authorities. He also mentioned about the presentation submitted by him to petition committee in Rajya Sabha on parity in pension ie same rank same pension (OROP) on 16 May 2011f or which Mr Bhagat Singh Koshyari, MP & former CM of UK is the presiding officer and full hope was envisaged for positive results.
Brig Behl mentioned about the problems being faced in ECHS and CSD Canteen due to over crowding and hoped that by coming up of new polyclinics at Clement Town and Vikas Nagar, which has been sanctioned long back by the DG ECHS. With this the pressure on ECHS MH will ease.
The Secretary Lt Col BM Thapa presented his Annual Report and minutes of the last years AGM which were approved by the house by voice vote. Lt Gen Anand Swaroop, PVSM, MVC as new Patron in chief and Maj Gen Shamsher Sigh, MVC as new patron were welcomed alongwith New Shakha presidents Capt VS Thapa (Nawada), Sub DS Thapa (Chhidrawala), Capt NK Thapa (Harrawala) and Capt MS Rawat(Raiwala). Also out going Shakha Presidents Maj YB Thapa (Chhidrawala) and Capt OB Chhettri (Nawada) were thanked for excellent contribution by them. Lt Col RP Jairath, the treasurer presented Annual Accounts and Balance Sheet which was passed by the house with voice vote.
Shri Ganesh Joshi, MLA and Ex- Garhwal unit, in his speech appreciated the activities of DESL and fully supported to help ESM in all respects. Maj Gen Shamsher Singh, MVC who was the chief guest and Maj RP Singh both honoured the 20 widows, veers Narees and very old veterans. Col KL Dewan, the expert on Pension matters, in his address explained latest on pension and what one Rank one pension means and how the matters stand at present. Ranipokhri Shakha was declared best shakha and Hav BP Sharma, President, received the award. Points were raised for over crowding at ECHS & CSD which was noted for implementation. The vote of thanks was presented by Lt Col BS Chhetri, Senior Vice President. The function was compered by Lt Col BM Thapa, Gen Secy DESL and meeting ended with Barakhana.
Input:-Lt Col B M Thapa,
Gen Secy Dehradun Ex-Services League

Canteen Facilities to Retired Assam Rifles Personnel

Friday, 17 June 2011 09:46
Integrated HQ of MOD (Army)
QM Branch
Dy Dte Cen Canteen Services
L1 Block, Room No. 13
New Delhi – 110001
No. 96013/Q/DDGCS 05 April 2011
HQ Directorate Central
Assam Rifles, Shillong, Pin-793010

GRANT OF CANTEEN FACILITIES TO RETIRED ASSAM RIFLES PERSONNEL
1. Reference Your statement of Case click here, forwarded vide DO No. A/ pers/ DO/2010 dated 02 Dec 2010 and MHA ltter No. 27011/18/2006/ R&W dated 15 Nov 2010, for grant of CSD facilities to the retired personnel of Assam Rifles.
2. Sanction is hereby accorded for the grant of canteen facilities to the retired personnel of Assam Rifles, till their own Central Police Canteens are established.
3. This has the approval of the competent authority.
Sd/-
(HS Brar)
Brig
Dy Dir Gen, Canteen Services
click here to read more

Defence Land scam in the offing in Andhra Pradesh

Ex-servicemen to stage protest today Special Correspondent
The hindu Online edition of India's National Newspaper Wednesday, Apr 06, 2011

Association seeks allotment of house sites for the welfare of ex-servicemen

Alleges handing over of Defence lands to others without permission

KADAPA: Ex-Servicemen's Association members will stage a protest rally and demonstrate before the Tahsildar office in Badvel on Wednesday against non-implementation of GOs 1241, 243 and 244 issued for allotting house sites to them on payment basis since four years.
No response
The association has represented to the Governor and Chief Minister Peshi and several leaders that house sites be allotted for the welfare of ex-servicemen, shift the congested military canteen, allotment of land to a military hospital and against handing over of Defence reserve lands to others without any permissions, but there was no response from the powers that be, association president P. Lakshminarayana, general secretary M. Penchalaiah, treasurer M.C. Ramaiah and members alleged in a statement.
The 30 Andhra NCC Battalion want to shift the CSM military canteen from its present congested location to any government accommodation. Sites reserved for defence personnel were being distributed to others without permission from higher officials, they said.
Site for ECHS Polyclinic
The Ex-Servicemen Association sought allotment of a building or sites for a hospital for men's contributory health scheme, but the plea was pending although thousands of rupees were paid to the government, they said.
Brig. Vidyasagar wrote five D.O. letters to the Secretary, Revenue.
They represented to the Collector Shashi Bhushan Kumar, Superintendent of Police Tarun Joshi, 30 Andhra NCC Battalion Commandant Lt. Col. V.N. Shasidharan, Zilla Sainik Welfare Officer Major A. Ahmad Basha and Director of Sainik Welfare Brig. C.S. Vidyasagar.
Ex-servicemen to stage protest today

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.
'Big scam in sale of CSD items to civilians'
CAG bares it all!
CSD(I) Demystified
Ex-serviceman held for selling defence liquor

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!