Defence Land Scams an update

Ministry of Defence
21-December, 2011 15:03 IST Defence Land Scams
Adarsh Housing Society and Kandivili cases are being investigated by CBI. Action shall be taken based on the recommendations of the investigation. No defence personnel has been found involved in Pune land case. Suitable action has been taken against Army personnel found involved in the Sukna land case.
It has been decided to resume Audit of defence lands which among others shall cover encroachments also.
The details of Adarsh Housing Society scam, Kandivili land scam, Pune land scam and Sukna land scam are as under:
1. Adarsh Co-operative Housing Society Case
Adarsh Co-operative Housing Society (ACHS) has constructed a multi-storied building on a land measuring approximately 3837.57 sq. mtrs, at Block VI, Colaba, Mumbai. ACHS had sought allotment of land from Government of Maharashtra for the welfare of serving and retired personnel of defence services. Prima facie, there have been irregularities and issues of concern in this regard include issue of `NOC by the Army to inter alia alienate the land in its possession in favour of ACHS; by¬passing Coastal Land Regulation Zone clearance; inclusion of civilians in the membership of the society; change of Floor Space Index; deviation from the commitments made for the welfare of defence services; disregard to security concerns of defence services etc. The Government has entrusted enquiry to CBI with a view to getting the matter thoroughly investigated and fix responsibilities.
2. Kandivili land case
As reported by Director General of Defence Estates, 13.28 acres of State Government land in village Akurli was held on hire by Army since long. In 2007, Collector, Mumbai Suburban District, allotted 5166.50 Sq Mtrs of land adjacent to Central Ordnance Depot (COD) to M/s Neo Pharma Ltd. after receiving its market value. This was objected to by COD and Defence Estates Officer (DEO) on the grounds that this formed part of Defence land on hire. Collector was also informed that COD will not permit any agency to take possession of Defence Land without approval of Ministry of Defence. However, their objections were overruled by the Collector. COD persisted with its objections and resisted handing over possession of the said land. Subsequently, at the direction of Headquarters, Southern Command, all obstacles were removed and Neo Pharma was permitted to go ahead with the planned development of the Plot.
Head Quarters Southern Command has sought that the matter be investigated at appropriate level. Army Headquarters (AHQ) recommended that the case be investigated by the CBI. After considering the matter, Government has asked AHQ to ascertain either by holding a Court of Inquiry or otherwise as to how Head Quarters Southern Command relinquished claim on the said land. The case has been investigated by a Court of Inquiry by Head Quarters Southern Command. The Court of Inquiry has been completed and case has been handed over to CBI on 30th November 2011.
3. Pune Land case
In March 2008 sanction was issued for transferring an area admeasuring 4498.56 sq. mtr. lo the Pune Municipal Corporation (PMC). When sanction was issued, it came to notice that while the subject land was entered in Revenue Records as `Military Line Kade’, it was not entered in the Military Lands Register of the Defence Estates Officer, Pune. There were some claimant(s) and the State Government authorities changed entry` in the Revenue records. The matter was therefore referred to the Central Bureau of Investigation (CBI). The case is under investigation
Corrective action has been taken and "Military Line Kade" has been restored in the Revenue records, the land has also been entered in the Military Lands Register.
4. Sukna land case
Sukna Land case pertains to land in Chumta Tea Estate neighbouring defence land and not defence land. This is a case of incorrect issue of No Objection Certificate (NOC) by HQ 33 Corps. A Court of Inquiry was ordered by HQ Eastern Command to investigate the circumstances under which No Objection Certificate was allowed to be given and MoU agreed by HQ 33 Corps for land in Chumta Tea Estate. The Court of Inquiry has been finalized and suitable action taken against erring officials.

This information was given by Defence Minister Shri AK Antony in written reply to Dr. Gyan Prakash Pilania in Rajya Sabha today. HH/NN (Release ID :79106)
Defence Land Scams
CBI to probe defence land scam

Gymkhana Clubs flout land lease rules

Annadale ground dispute with army in Shimla arbitration court
Ravinder Makhaik.
Not being able to dispossess the army authorities from the prized Annadale ground, the district administration has evoked an arbitration clause to resume a property that has been occupied by the army since 1955.
Talking to Hill Post, Onkar Sharma, deputy commissioner said, “Over 130 bighas of land at Annadale ground is under ownership of the government which on paper is recorded to be in possession of Gymkhana Club.”
“A lease signed between the government and the army authorities ended in 1982, and clause 4 in the lease agreement provides for arbitration should a dispute arise. We have evoked that arbitration clause before the divisional commissioner court at Shimla,” he added.
While the district administration has moved court, a signature campaign by the district cricket association (DCA) to get the ground vacated by the army has found tremendous support as over 75,000 till date have signed up.
“Annadale is the only big public ground in the state capital,” says Surinder Thakur, DCA president, “and the army should vacate it as the city desperately needs it.”
The association intends to collect 1 lakh signatures and submit a memorandum to defense minister AK Antony through state chief minister Prem Kumar Dhumal.
Relations between the state and the army authorities over the ground usage remain strained for the army even restricts helicopter landing facilities for civilian use on it.
Read more

A closer look at the Gymkhana clubs under scrutiny reveals:
The clubs have lease agreements for a period of 30 to 60 years. Defence lands— often huge tracts given to run the clubs to ensure "betterment of Members including the Garrison Officers". One needs to zero in on the terms and conditions of the lease agreements, which are grossly violated. These are: restricting public entry and use, discriminatory membership practices, non-payment of dues, non-submission of audited accounts and earning illegal revenue by letting out premises for weddings, parties, guest rooms and Guest fees. The Garrison Officers are relegated as second class members. The managements and Governing body owes an explanation to the nation for violating the Rules of the land. Even capital gains taxes are cleverly evaded.
Besides, the management and Governing Body are minting money by hiring out premises without paying a dime for tax. It's nothing but a robbery of citizens' resources, If these conserves of the privileged governing body can be brought to the negotiating table to renew their leases at reasonable rates and made to follow terms, the bigger battle of fighting corruption in high places can be won!

Adarsh Housing Society: Cases booked under IPC

PIB- Ministry of Defence 14-March, 2011 20:18 IST
Central Bureau of Investigation (CBI) had registered a Preliminary Enquiry on 15.11.2010 which has been completed and a regular case registered on 29.1.2011 against 13 persons under various sections of Indian Penal Code and Prevention of Corruption Act, 1988. Searches have been conducted at 13 places and large number of documents have been seized, which are under scrutiny by CBI. The names of accused persons are :(1) Shri R.C. Thakur, the then sub. Divisional Officer, Defence Estate Office, Mumbai, (2) Brigadier (Brig) [Retd]. Madan Mohan Wanchu, (3) Shri Kanhaiyalal Gidwani, Ex-MLC, (4) Major General (Maj Gen) [Retd], A.R. Kumar, the then General Officer Commanding in-charge (GOC), Maharashtra, Gujarat and Goa (MG&G) Area, Mumbai, (5) Brig.(Retd) Romesh Chandra Sharma, the then Deputy GOC, MG&G area, Mumbai, (6) Maj Gen Tej Krishan Kaul, the then GOC, Indian Army Mumbai, (7) Brig (Retd.) Tara Kant Sinha, the then Colonel, MG&G Area, Mumbai, (8) Brig P.K. Rampal, the then Commandant, sub area Mumbai, (9) Sh. P.V. Deshmukh, the then Dy. Secretary D/o Urban Development, Government of Maharashtra, (10) Shri Ramanand Tiwari, the then Principal Secretary, D/o Urban Development, Government of Maharashtra, (11) Shri Subhash Lala, the then Principal Secretary to Chief Minister, Government of Maharashtra, (12) Dr. Pradeep Vyas, the then Collector, Mumbai, (13) Shri Ashok Rao Chavan, the then Revenue Minister and the then Chief Minister, Government of Maharashtra and private persons. Investigation is in progress. The details of violation of rules/ regulation can be ascertained only after completion of investigation.
Some note sheets of a Adarsh Housing Society related file of Department of Urban Development, Government of Maharashtra have been found missing. In this regard, FIR has been filed with Mumbai Police against unknown persons.
This information was given by Defence Minister Shri AK Antony in a written reply to S DR. Arvind Kumar Sharma and others in Lok Sabha today. PK/NN
(Release ID :70979)
Adarsh Housing Society

Adarsh case: Babus deflect, delay and evade disciplinary action

Adarsh case: Pressure on Maha govt to initiate action against babus
Sanjay Jog / Mumbai December 25, 2010, 0:15 IST
Pressure is mounting on the Maharashtra government to take action against bureaucrats and officials for their alleged involvement in the Adarsh society scam.

Ministers in the Prithviraj Chavan-led led cabinet got a shot in their arm following the Bombay High Court observation that everyone who cleared the files was gifted a flat. The Shiv Sena has also stepped up its demand for action against officials.

Chief Minister Chavan has already announced a probe under the Commission of Inquiry Act into the Adarsh scam and the Central Bureau of Investigations and the Army are carrying out independent inquiries.

However, the government is yet to appoint the two-member commission comprising a retired judge of the Supreme Court or the Bombay High Court and a retired official of the rank of chief secretary. Deputy Chief Minister Ajit Pawar has announced that the bureaucrats and officials will face action and they will not be spared.

Preliminary findings have revealed that senior defence personnel, bureaucrats and politicians had allegedly formed a nexus to get flats in the building meant for the widows of Kargil war heroes.

The government has sent notices to 12 top bureaucrats, who own flats in the Adarsh Housing Society in Mumbai, asking them to respond to allegations of a breach of conduct of civil service rules.

The bureaucrats who have been issued notices include former BMC chief Jairaj Phatak, former urban development secretary and the incumbent information commissioner Ramanand Tiwari, former urban development deputy secretary PV Deshmukh, former chief secretary DK Shankaran, former agriculture secretary Shivajirao Deshmukh and Human Rights Commission member Subhash Lala.

Sons and daughters of all the officials have a flat at Adarsh. Some of the officers have already sent their replies to the government. At least five bureaucrats, who were contacted, declined to comment on the issue.

A senior Congress minister, requesting anonymity, told Business Standard: “It is ironical that Ashok Chavan had to step down as the chief minister in the wake of the expose on the Adarsh scam. His mistake was that three of his relatives have flats in the Adarsh society. However, it is disappointing that despite Bombay High Court’s snub, the government has not taken action against the concerned bureaucrats and officials.”

“To begin with, Tiwari and Lala must immediately be removed from their present posts and severe action against them should be initiated under the civil services rules,” he said.

Currently, the high court is hearing a petition filed by the members of Adarsh society challenging the suspension of occupational certificates and the decision to disconnect water and power supplies to the building.
Adarsh case: Pressure on Maha govt to initiate action against babus

Land Scam: Swift action by the Army

Army orders probe into Adarsh Society scam, role of officers
NDTV December 11, 2010 22:06 IST
New Delhi: The Army today ordered a court of inquiry into the Adarsh Housing Society scam in Mumbai and the alleged role of senior serving and retired officers, including Major General R K Hooda, in it.

"Yes, a court of inquiry has been ordered in the Adarsh Society episode and certainly Major General R K Hooda figures among those who will be examined," a senior officer in the Army headquarters here told PTI.

The Army's Pune-based Southern Command headquarters ordered the probe to find out how these officers had issued a No-Objection Certificate to the private housing society to construct a 31-storeyed complex on a plot in Kolaba.

Maj Gen Hooda was the Mumbai-based Area Commander for Maharashtra, Gujarat and Goa.

The 104-apartment Society got embroiled in a controversy after the Navy had raised concerns over security as the building over-looked important military installations.
NDTV Report- Read more click here
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Will CBI relentlessly pursue the case to its logical collusion or conclusion?

CBI likely to file case in Adarsh scam today.

The CBI is likely to file a case in the Adarsh Cooperative Housing Society scam on Friday and a team of its officials from Mumbai will go to the agency headquarters in Delhi to apprise higher officials of its findings.

A CBI spokesman in Delhi said a letter from the Defence Ministry asking the agency to conduct the probe has been received. The CBI is in the process of collecting relevant records and documents, and “no case has been registered as yet”, he added.

CBI officials in Mumbai said a team would be going to the Delhi head office on Friday for discussion on the Adarsh scam. “Only after discussion, further course of action will be decided,” the officials said.

Official sources said a case was likely to be registered on Friday when CBI Director Ashwini Kumar, who is at present out of country attending an Interpol Conference, returns.

Defence Minister A.K. Antony had announced on Tuesday that a CBI probe into the housing society scam, in which some senior Army officials, including former Army chiefs Gen Deepak Kapoor and NC Vij, had flats allotted in their names.

The CBI, which had made in-house investigations into the case following complaints since October, will apprise the officials at the headquarters about the findings from documents received from several departments, the sources said.

The CBI had sought documents relating to the Society from various departments of the Government, Indian Navy and Army and the Society, the sources added.

“While we had received over 4,000-page documents from the city collector’s office, the Society members have sent us a letter requesting more time to submit the documents. We have also received documents from other departments,” a senior CBI official said.

Adarsh Housing Society members’ lawyer Satish Maneshinde had said, “We have given certain documents to CBI and have sought further time to submit the remaining. We have also written to MMRDA officials asking them to take back the notice revoking the occupancy certificate of the society.

“The notice violated principles of natural justice. The building was constructed legally and necessary sanction had been granted by authorities including the MMRDA.”

CBI officials said, “We are verifying all the information and documents, after which a decision would be made on the course of action. Before registering a case, we need to gather information.”

The plush housing society, built on prime defence land, has been constructed in alleged violation of rules. The building was originally meant to be a six-storey structure to house Kargil war heroes and their kin but was later extended to 31 floors without mandatory permission.

The scam has already taken its first political casualty with Ashok Chavan resigning as Chief Minister of Maharashtra.
Read more- Click here

Action against Adarsh Society by this week: Jairam

The scam-hit Adarsh Housing Society will face action for its violation of green norms by the end of the week, according to Environment Minister Jairam Ramesh.

While the Maharashtra environment department and coastal zone authority have both submitted their reports to the Union Ministry, denying that they granted any clearance to the controversial project, Mr. Ramesh said he is still awaiting the state urban development department’s report.

The Adarsh building is 31-storeys tall, in blatant violation of coastal zone regulations that permit only a six-storey building in that area. Speaking to reporters, Mr. Ramesh made it clear that state urban development department was not authorised to grant such clearances.
Read more- Click here

Mumbai Military Estate Scam Shames Sukhna

Man sets up land grab from army
Samar Halarnkar and Rahul Singh, Hindustan Times
New Delhi/ Mumbai, October 26, 2010

A retired junior defence estates officer once probed for corruption coordinated the takeover of a south Mumbai army park that is now a 31-storey super-luxury building on one of Asia’s costliest swathes of real estate — cleared on the fake condition it would be a six-storey structure housing war veterans and widows.

India’s defence ministry is now struggling with a request from its Western naval commander to investigate the repeated subversion of various laws that eventually allowed Ramchandra Sonelal Thakur to become general secretary of the Adarsh Cooperative Housing Society within the bounds of the Colaba Military Station in south Mumbai’s Cuffe Parade, where flats sell for Rs 50,000 to Rs 80,000 per sq ft.

The flats, including the land, cost the society and its members Rs 26 crore. The market value is anywhere between Rs 500 to Rs 800 crore. The society got an occupation certificate last week.

“There is very big money, and very powerful people involved,” said a highly placed source in the defence ministry, refusing to be quoted given the sensitivity of the case. “Frankly, it is going to be very difficult to probe the complaint (made earlier this year by the admiral heading the Western Naval Command in Mumbai), but we are perusing it.”

Once a lush 6,490 sq m of about 100 trees called the Khukri Eco Park (named after an Indian frigate sunk during the 1971 war), the owner’s list in Adarsh now includes a former naval chief, two former army chiefs — among a host of other senior officers — top Maharashtra bureaucrats, members of Parliament and Thakur, who retired this year from the defence estates department.

In 2003, thakur was being probed by the Central Bureau of Investigation for the illegal transfer of defence land in Nagpur.

Investigations by the Hindustan Times — which has a list of beneficiaries; fake, past and present — reveal a pattern to this ownership: A collective manipulation of laws that led Thakur’s Adarsh deal to be cleared in stages since 2003 by Congress chief ministers, Sushilkumar Shinde and Vilasrao Deshmukh (both now Union ministers), the then army commander, Maharashtra and Goa Sub Area, Maj Gen T N Kaul, and a host of Maharashtra government bureaucrats, including Managing Director of the Rural Electrification Corporation (REC) and former Mumbai municipal commission Jairaj Phatak.

"I don't remember the case," said Deshmukh, union minister for heavy industry. Shinde could not be reached for comment. Defence Minister A K Antony said the government was “examining the matter seriously”.

Contacted in Nagpur, Adarsh society’s Thakur said “those who failed to get flats” were now complaining, including, he implied, Vice Admiral Sanjiv Bhasin, chief of the Western Naval Command.

“Khatte angoor kaun khaya (who’s eaten sour grapes)?” asked Thakur with a laugh. “He (Admiral Bhasin) should know why he has complained. We told so many people, sorry, you cannot be accommodated.”

"Do you expect me to respond to that statement?" said Admiral Bhasin. He said had been writing to "all authorities concerned for the past six-seven months" to get the clearances revoked. "No one is aware of who the members are. We wrote to the registrar of properties,” said Bhasin, who regards the towering building as a threat to security and naval air operations. “The registrar told us to approach the society. The society did not respond for a month and said the list was being finalised by the government of Maharashtra."

Bhasin said he then requested the Chief Secretary to withhold an occupation certificate until the names are made public. "We want to do a scrutiny of all officers, and if they are civilians, we will ask the police department to verify their antecedants. The MMRDA (Mumbai Metropolitan Region Development Authority) may have been pressured to issue the certificate last week because of the influential people involved." Bhasin has again asked for a revocation of the occupancy certificate.

MMRDA denied any letter from Bhasin requesting a denial of an occupation certificate.

"We (MMRDA) issued the occupation certificate to the building on September 16, 2010, on the basis of structural plan and documents submitted...they had obtained all necessary permissions," said MMRDA spokesman Dilip Kawathkar, who said they did get a letter asking for a list of society members.

"We replied to the letter saying that the list could be obtained by the Collector, who was the appropriate authority for the same."

Chief Minister Ashok Chavan said the Adarsh affair was an "old issue". He then denied knowing any details: "Before ordering any probe, we will have to first look into ownership issue of the plot, whether it is a state government-owned plot or no (sic)."

Since 2004, when the building was first cleared, there has been a spate of additions and deletions to the list of Adarsh society members, often coinciding with their stints in power. The junior officers have been dropped.

Among the “Kargil Heroes” named on the original list of 71 members of the Adarsh Society — there are now nearly 100 flats — are Subedar Ramnarain Achelal Thakur and Major Rajiv Kumar Hitnarain Singh. They never owned flats in Adarsh and army sources told the Hindustan Times they had no record of these soldiers.

They were replaced with senior defence officers, an influential set of politicians, two MPs, an MLC (member of the legislative council) and bureaucrats. That included an IAS officer married to the then Mumbai district collector, who deleted 34 names from the first list questioning their “eligibility”.

With such manipulation and reach, clearances came thick and fast, said the defence ministry source. One of those whose son got a flat was REC MD Phatak.

"My son became a member of the society in 2003-04, when I was the secretary of school education and had no say in land allotment or town planning permissions,” said Phatak. “He met all the eligibility criteria. No sane person would have refused the membership."

But Phatak was municipal commissioner in 2007, when the society got additional floor space and clearance from the municipal corporation, allowing a 31-storey skyscraper in a coastal regulatory zone with restrictive building laws.

Phatak said the land development approvals came from the MMRDA, and the municipal corporation’s High Rise Committee evaluated the building “only because MMRDA does not have in house committee to clear skyscrapers”.(With Shailesh Gaikwad and Ketaki Ghoge)
Defence Estate Officer sets up land grab from army: Hindustan Times Report
Top Army Brass in Mumbai land row: NDTV Report

Nationwide rampant encroachment of Defence Lands

LOK SABHA
Some Defence land under the management of various authorities is under encroachment or illegal occupation. The state-wise details are as follows:

click image to read data
Any encroachment of Defence lands is liable for removal and also for payment of damage charges as per the law. Hence loss caused, if any, is recoverable. The action for eviction of the encroached lands is taken under the provisions of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 and Cantonments Act, 2006.

This information was given by Defence Minister Shri AK Antony in a written reply to Shri Somen Mitra in Lok Sabha on 30 Nov 2009. PK / RAJ
Encroachment of Defence Lands

Comment:
The AHQ need to vigorously pursue encroachment cases diligently. Area Commanders are responsible for securing and upkeep of Defence Lands. Sadly they close their eyes when they get paltry personal favours from the encroachers, conmen, hoodlums and Political Criminals. Sukhna Land scam is only the tip of the iceberg. The Defence Minister instead of preaching in the Lok Sabha need to fight the Land Grabbers and MOD bureaucrats on the ground and not on paper!

Bureaucrats grab Defence Lands in Mumbai

NDTV Correspondent, Wednesday March 31, 2010, Mumbai
The Golibar slum in Mumbai's Santa Cruz suburb is the site of a new controversy over Defence Land.

The Air Force alleges that a set of six buildings have illegally come up on 12 acres of its land which could be worth several hundred crores, with the connivance of government officials.

The buildings are part of government slum rehabilitation scheme but the Air Force has alleged that it is defence land which the state government has grabbed without permission.

The Air Force has taken the state housing agency MHADA and the private developer Shivalik Ventures to a city court. It wants the buildings to be demolished.

Nearly 26,000 slum dwellers are to be rehabilitated through this multi-crore project and now many are worried as to what will happen if land ownership is being disputed.

Kalimuddin Sheikh says, "All the locals here were supposed to be rehabilitated on plot number 13 ...MHADA was claiming that it is their land now the defence has made counter claim..."

"I don't think so the project is being carried keeping the SRA norms in mind...", adds another resident, S Atamaram.

Government officials refused to come on record, but they say the Air Force had already lost control of the land because it was encroached by slums. The state housing board says they have documents showing the land belongs to them. Also the project was cleared by another department, the Slum Rehabilitation Authority.

Shivalik Ventures has denied any illegality. It claims it has not built anything on Air Force Land.

"The buildings have not come up on Air Force land but on an adjoining plot. We have received all the necessary clearances from the government. We have not been served any notice on the case", they say.

The claims and counter-claims on this disputed land will now be tested in court.
Air Force moves court over land grab in Mumbai

MOD Land Lease scam: Prestigious Chennai Clubs Cheat the Nation

Gymkhana Club, Chennai
The then Madras Gymkhana Club was in occupation of 44.13 acres of Defence land in a prime part of the city from December 1977 to November 1986 on payment of annual rent of Rs 3,526. Though a formal lease agreement had not been entered into with the Club till then, the Ministry of Defence sanctioned, in October 1990, the continuance of the lease only in respect of 8.608 acres of land retrospectively from November 1986 onwards at the increased annual rent of Rs.8,608 based on agricultural rates. No lease agreement was concluded even thereafter.

The DEO, Chennai, recovered rent from the Club up to November 1991. Thereafter, he stopped accepting rent from the Club on the ground that it had resorted to unauthorised construction on the leased land and had also made alterations to the building thereon without the prior permission of the lessor and in violation of the lease agreement.

Audit scrutiny disclosed the following:
The Club had constructed 14 air-conditioned guest rooms, in respect of which rent ranging from Rs 900 to Rs 1,950 per day was levied, a beauty parlour, a Chinese kitchen, ice-cream parlour, etc. It had also sub-let a portion of the land to a bank without the prior permission of the lessor.
Keeping in view the Club’s commercial activities, the DEO had assessed that rent amounting to Rs 33.10 crore was recoverable for the period from November 1991 to June 2001, based on only 2.5 per cent of the land value, as against 5 per cent adopted for determining the rent payable by another club in the same station, that was also involved in similar commercial activities, which has been discussed in paragraph 2.6.2.2.
Government’s approval for revision of rent as proposed by the DEO had not been obtained even after the lapse of over 4 years as of March 2002.
The Directorate General of Defence Estates informed Audit in September 2002 that the draft lease for the period from December 1977 onwards and rate at which damages were to be recovered from the Club had not yet been finalised by Ministry.

Cosmopolitan Club, Chennai
The Cosmopolitan Club, Chennai, had been occupying 2.327 acres of land, in the heart of the city, since July 1962/July 1965 without renewal of the earlier lease agreement which was effective only up to June 1970. The Club also unauthorisedly occupied an additional area of 3.925 acres from April 1993.

Audit scrutiny of the case disclosed the following:
Though the lease in respect of the 2.327 acres of land expired in June 1970 itself, the DEO did not take any action till September 1975 when an application from the Club for renewal of the lease beyond June 1970 was received. The matter was taken up with the Directorate General of Defence Estates only in November 1975.
The DEO brought to the notice of the Directorate General in March 1997 that the Club had been functioning as a commercial organization and rent should consequently be charged on a commercial basis. Based on 5 per cent of the land value, rent totalling Rs 3.29 crore was determined as recoverable for the period from July 1970 to March 2000, which would increase to Rs 4 crore up to June 2001.
No Lease agreement had been concluded with the Club beyond June 1970 in respect of the 2.327 acres of land initially leased to it or in respect of the 3.925 acres that had been unauthorizedly occupied since April 1993. Recovery of rent at commercial rates proposed by the DEO had also not been effected as of March 2002.
The Directorate General informed Audit in September 2002 that the question of renewal of the lease and damages to be charged from the club was under examination.
Prestigious Chennai clubs owe Rs 50 Crore rentals to MOD

Comment:
This scam is perpetuated by Politicians, Bureaucrats in connivance with the MOD and AHQ. The Sukhna Scam fades into insignificance compared to revenue loss of over Rs 50 Crore to the exchequer for a period of over 2 decades as black money has been used by vested interests to evade legitimate revenue due to the Government!

A closer look at the clubs under scrutiny reveals:
The clubs have lease agreements for a period of 30 to 60 years. Defence lands— often huge tracts given to run the clubs to ensure "betterment of Members including the Garrison Officers". One needs to zero in on the terms and conditions of the lease agreements, which are grossly violated. These are: restricting public entry and use, discriminatory membership practices, non-payment of dues, non-submission of audited accounts and earning illegal revenue by letting out premises for weddings, parties, guest rooms and Guest fees. The Garrison Officers are relegated as second class members. The managements and Governing body owes an explanation to the nation for violating the Rules of the land. Even capital gains taxes are cleverly evaded.

Besides, the management and Governing Body are minting money by hiring out premises without paying a dime for tax. It's nothing but a robbery of citizens' resources, If these conserves of the privileged governing body can be brought to the negotiating table to renew their leases at reasonable rates and made to follow terms, the bigger battle of fighting corruption in high places can be won!

Misuse of Defence Lands by Commercial agents thwarted by the High Court

Thursday, Mar 25, 2010: The Hindu
Special Correspondent: Single judge's order to permit conversion set aside
CHENNAI: The Madras High Court has allowed appeals by the Cantonment Board, St. Thomas Mount-cum-Pallavaram, and the Defence Ministry challenging a single Judge's order directing the authorities to permit conversion of a piece of land, leased by the Defence Ministry to a person, from residential to commercial purpose.

U. Venkatesh was the lessee of 19,200 sq.ft. of land at St. Thomas Mount-cum-Pallavaram Cantonment and the lease granted was only for residential use and not commercial purpose. The conversion was not granted by the Defence Ministry. He filed petitions praying for permission to use the leasehold right for commercial purpose for 90 years by fixing and collecting annual rent and premium of the year 1997 and a direction to the Executive Officer, Cantonment Office, to sanction the building plan in his favour. He also challenged the rejection of his request for conversion of land use. By a common order the single Judge allowed the petitions.

As against the orders, the present appeals were filed. The appellants said the request for change of land use having been rejected and without obtaining the Defence Ministry's permission, approval of the building plan was sought for, which was also returned. The petitioner ought not to have commenced construction on the land for commercial purpose.

M. Ravindran, Additional Solicitor-General, submitted that the petitioner was a lessee of the land, owned by the Defence Ministry, and he was bound by the lease deed which contained a clause to use the land only for residential and not for commercial purpose.

Allowing the appeals and setting aside the single Judge's order, a Division Bench comprising Justices Elipe Dharma Rao and N. Paul Vasanthakumar said the petitioner's conduct in approaching the court and obtaining an interim order without disclosing the non-grant of permission for using the land for commercial purpose and completing the building construction was illegal. The petitioner was bound by the lease agreement.

The Bench said the Supreme Court in a decision had held that buildings constructed unauthorisedly were bound to be demolished. In this case, the petitioner admittedly constructed the building without the Defence Ministry's permission regarding change of land use and also without obtaining building plan approval from the Estate Officer.
Land use conversion case: High Court allows Defence Ministry's appeals

Related article:
Gymkhana Club which is governed by civilians (though land and premises belong to the Military) now need to get licences to operate eateries within the club. The hygiene parameters are bound to improve in the clubs devoid of flies, mosquitoes, bird droppings and foul smell in the dining areas. The Military need to get back the defence lands leased to the Gymkhana Club. The lease has been renewed by corrupt and dubious means and premises used for commercial gains by the Gymkhana Governing Body whose main aim is to spin money. The above case illustrates how the lease can be revoked through court order. The Area Commander who is the Patron of Gymkhana Club should take the initiative of preserving the defence lands in his custody or else it will graduate to land Scam of Sukhna proportions.
Licences mandatory for club restaurants

High Court to MoD: Crack down on encroachment in Cantonments

LUCKNOW: In a significant judgment, the Allahabad high court has directed the secretary, ministry of defence, to instruct all the command heads of Indian military to map all defence lands and estates and ensure zero unauthorised occupancy or encroachment thereon.

The judgment may have far-reaching consequences as it could lead to prompt eviction of tens of thousands of civilians who have been occupying the military land in the absence of any clear-cut ruling on the real ownership of the land.

Justice Rakesh Sharma issued the directives in his judgment on a petition filed by Vishnu Narain Garg against the Government of India (GoI) over possession of a 62 bigha land in Sachendi village of Kanpur City district. The case pertained to the dispute over ownership of the land that was acquired to serve as Military Camping Ground (padaao) after the uprising of 1857 when the Britishers strengthened their army establishments particularly in cities which witnessed action during the First War of Independence.

Emphasising on the need of land for the military, the bench stated that the army was already short of land required for "military purposes" for its day to day affairs and operations including regular training. Highlighting the role of the Indian Army, the bench noted that it was essential that the military was provided with the required elements including land to maintain its training levels and guard our nation.

After having reasoned out the importance and necessity of the defence land, the court expressed concern over the encroachment of defence land by land mafia and land-grabbers around the defence estates in different districts of Uttar Pradesh and beyond. "It has been brought to the notice of the court that entertainment centres and commercial establishments run by private parties are being brought up uninterruptedly on army land," the judgment stated.

The court also observed that the military commanders heading the commands owe it to the nation to ensure that the land earmarked for military purposes does not go into unauthorised hands.
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High Court to MoD: Crack down on encroachment in Cantonments

MoD employs double standards on Land Scams

Gymkhana Club Chennai owes 33 crores as rent arrears on occupation of Military assets
The prestigious Gymkhana Club, situated close to the TN area headquarters, was an exclusive facility for military officers. Until 1920, its membership was restricted to garrison officers only and, even today, the club grounds belong to the armed services. This club is now hijacked by Civilians, Industrialists and Bureaucrats and Garrison Officers reduced to personae non gratae (literally non entities) without voting rights. This is height of bureaucratic arrogance subjected on the defence forces! The Area Commander is made a dummy Patron of the Club to hoodwink the Garrison Officer- Members serving and retired.

The then Madras Gymkhana Club was in occupation of 44.13 acres of Defence land in a prime part of the city from December 1977 to November 1986 on payment of annual rent of Rs 3,526. Though a formal lease agreement had not been entered into with the Club till then, the Ministry of Defence sanctioned, in October 1990, the continuance of the lease only in respect of 8.608 acres of land retrospectively from November 1986 onwards at the increased annual rent of Rs.8,608 based on agricultural rates. No lease agreement was concluded even thereafter. Gymkhana Club, Chennai in occupation of 44.13 acres has an outstanding dues Rs 33.10 crores, which has not been recovered over the years.

The DEO, Chennai, recovered rent from the Club up to November 1991. Thereafter, he stopped accepting rent from the Club on the ground that it had resorted to unauthorised construction on the leased land and had also made alterations to the building thereon without the prior permission of the lessor and in violation of the lease agreement.

Audit scrutiny disclosed the following:
The Club had constructed 14 air-conditioned guest rooms, in respect of which rent ranging from Rs 900 to Rs 1,950 per day was levied, a beauty parlour, a Chinese kitchen, ice-cream parlour, etc. It had also sub-let a portion of the land to a bank without the prior permission of the lessor.
Keeping in view the Club’s commercial activities, the DEO had assessed that rent amounting to Rs 33.10 crore was recoverable for the period from November 1991 to June 2001, based on only 2.5 per cent of the land value, as against 5 per cent adopted for determining the rent payable by another club in the same station, that was also involved in similar commercial activities. Government’s approval for revision of rent as proposed by the DEO had not been obtained even after the lapse of over 4 years as of March 2002. The Directorate General of Defence Estates informed Audit in September 2002 that the draft lease for the period from December 1977 onwards and rate at which damages were to be recovered from the Club had not yet been finalised by Ministry.
MINISTRY OF DEFENCE: Status of encroached lands
Exploitation of Defence Lands and listed scams

The MoD in connivance with Politicians have hijacked the prestigious and Exclusive Military Club. The present Committee Members of the club are spinning and reeking in crores of Rupees from membership fees from Industrialists, Bureaucrats and Civilians. The Bye- laws suitably framed by the Governing Body is a farce and passed by proxy to ensure the outstanding rentals are not paid to the Military. The Military Officers are made joker members divested of any honour or dignity in the club! When the Military is fighting for upholding Warrant of Precedence of Military ranks, here we see slew of dishonour bestowed on Military Officers and Retired Officers. Defence Minister should intervene and ensure that dignity of Military Officers are upheld at all forums.
Gymkhana Club Chennai- hijacked? Military made a scapegoat!

Sukhna Land Scam
Kolkata: Indian Army will begin trials in the Sukhna land scam case against Lt Gen PK Rath and Lt Gen Avadesh Prakash in Kolkata.

Lt Gen P Goel will be the presiding officer for the proceedings. The Army is going ahead with the proceedings even as a case is going on at the Armed Forces Tribunal where Lt Gen Prakash is seeking a stay. The tribunal has reserved its verdict in the land scam case.

Sources in Army Headquarters say the trials cannot be treated as contempt since the tribunal did not ask for stay of disciplinary proceedings.

Army's Eastern Command in Kolkata will carry out disciplinary proceedings which start on Wednesday and will begin with "hearing of the charge" - that is the charge will be read out to accused officers.

Lt Gen Prakash was the military secretary and responsible for the promotions and postings of army officers. He is among the army's most senior officers to face court martial on charges of corruption.
Top generals to be charged in Sukhna land scam

Sukhna Land Scam?

Almost all institutions in the country, including that of PMO, have been destroyed / subverted/ weakened by the politico-bureaucratic nexus. Military is the only institution still intact but the vested interest (bureaucracy) wants to systematically do the same to it also. In the so called Sukhna land case, the bureaucracy has misguided the Raksha Mantri into interfering in centuries old and well tested military judicial and justice system. This is a most dangerous trend.

Sukhna episode is not a SCAM, nor even a scandal, and a mountain has been made out of a mole hill. The land belongs neither to the army nor the Government, nor it has been occupied by Army but is a private tea estate. Since the land is still with the owner, where is the scam? The issuing of NOC for the construction of a school, within the prohibited area around the cantonment is the issue. Don’t ALL our cantonments have civilian pockets within them? Aren’t ALL our military stations surrounded by civilian areas? If there is no security threat to all such stations what is so peculiar with Sukhna? Law of ‘No Construction with in 1000 yards’ of the boundary of a military establishments is violated and flouted everywhere with impunity, without any exception. The DCs routinely issue ‘change of land use,’ orders, maybe for a consideration. The most glaring cases are construction near vast ammunition depot at Badowal (Ludhiana) and a most sensitive Air Force establishment at Kasauli. These affect National Security far more seriously than the Sukna case. The media must go into these violations and seek strict actions against the guilty.

For all issues arising out of giving of NOC, the Army Chief, after examining the Court of Inquiry, other evidence and the recommendations of the army commander, is well within his legal and administrative rights to decide on the further course of action. In the instant case, his decision to take only administrative action can be as debatable as any judicial order. Sometimes ‘administrative’ action can be quicker and harsher than a Court Martial, where a person has a right to defend himself.

Unprecedented Intervention by the RM is irregular and is beset with grave implications, besides impinging on the rights and sanctity of military’s judicial system. He appears to be goaded in this matter by the MOD bureaucracy, for obvious reasons related to our ongoing agitation for Parity in Pension and thus to show military in bad light. Both the RM and the Army Chief can be put in a very embarrassing position when called as defence witnesses by a clever defence counsel in the Court Martial. What happens if the case is lost? Can the institutional damage inflicted on the Military be then undone?

Aspersions have been cast on the integrity of the COAS himself. Why should Civil–Military rivalry or infighting amongst top few Generals be allowed to erode the faith of the soldiers deployed on borders or at 21000 feet in Siachen, in their military’s justice system and its leadership, thus lowering their morale, which is a ‘Battle Winning’ factor?

The real ‘SCAMS’ are grabbing of defence land of military camping grounds and around the cantonments by the big fish are real land scams. Govt must NOT apply entirely different yardsticks for civil and military personnel. It is all right that armed forces ought to be clean, but scale to measure guilt must be same. It takes 19 years to convict a DGP for molesting a minor girl, whereas in the army those involved even an underweight egg are dealt with expeditiously. Military Soldiers accused in the Tehelka case were severely punished while nothing happened to any civilian. Bureaucrats involved in proven corruption cases are promoted or even go as Governors. Is it JUSTICE? Let ‘justice’ be equitable for all.

As per the media reports, black money of US$ 1.4 trillion (about Rs 75 LAKH CRORES) is stashed away in Swiss banks by our corrupt politicians, bureaucrats and the like. Yet not a whimper is heard about it. The dead horse of Sukhna is being flogged, by all, rather noisily.
Brig Harwant Singh (Retd)
President,
The All India Defence Brotherhood (Regd)
Related reading
The Generals and their labyrinth

62nd Army Day Greetings

PTI: Army chief General Deepak Kapoor addresses a press conference ahead of the 62nd Army Day in New Delhi on Thursday. Photo: AP
{COAS Press Conference: Click here}

“REPORT MY SIGNAL”

WISHES ALL ITS MEMBERS

A VERY HAPPY ARMY DAY

HAVE A NICE TIME.

In service of Indian Military Veterans
Chander Kamboj

Corruption in the Armed Forces- an open letter to COAS

Dear Colleagues,
Having spent 33 very fruitful and fulfilling years in the Army, I feel empty after reading the open letter by Col Rajinder Singh to COAS. Access the letter here along with comments of Air Cmde Raghubir Singh (Retd)
I have come across such officers but their number is minuscule. We were 20 odd COs in an infantry division, all open to 14000 soldiers. I recall only one CO who probably fits in the scenario as he escaped and became a Major General. My technical boss at the Corps HQ, who fitted in absolutely was court- martialed and sentenced severely. The latter also took some innocents along, one of whom was so honest that you could not find office stationery in his home but he signed some routine supply orders which got him in.
I am now 7 years in retirement. I do not think rot is as deep as the long letter says. Yes, it is getting worse and it needs to be arrested. And I think it will get arrested by the Internet era not by this or that COAS. They are products of the same system. There is no place left to hide now. If you think IAS etc are better, think again... If you think Corporate world is better, think Raju of Satyam. Every family owned business is a potential Raju Story...
Indian Armed Forces continue to be on the top of honesty charts in the public mind. I hope it continues.
Best Regards,
Brig KS Bhoon (Retd)



The Sukhna Land Scam: Corruption in army: Dent in the brass

Antony discusses scam report with Army chief

PTI First Published: 25 Dec 2009 11:47:24 AM IST
NEW DELHI: With four Generals coming under cloud over alleged fraud in the sale of a civilian land near Darjeeling, Defence Minister A K Antony summoned Army Chief General Deepak Kapoor for a meeting in which they reportedly discussed the contents of the probe on the issue.

Antony, on his return from Hyderabad in the afternoon, called for a meeting with Kapoor and the two were closeted for about 40 minutes, Defence Ministry officials said this evening.

"It was a closed door, one-on-one meeting," officials said, denying knowledge of the meeting's agenda.

Army military secretary Lt Gen Avadesh Prakash, Deputy Chief of Army Staff-designate Lt Gen P K Rath, 11 Corps Commander Lt Gen Ramesh Halgalli and Major General P C Sen were reportedly found culpable for issuing a No-Objection Certificate to a private institution, which falsely claimed to set up an affiliate of the famed Ajmer-based Mayo College, adjacent to Sukhna military station.

The Court of Inquiry into the fraud, which was completed a fortnight ago, had submitted its report, on the basis of which Eastern Army Commander Lt Gen V K Singh reportedly made recommendations to Army Chief to initiate strict action against these senior officers, who had a role in the NOC episode.
Antony discusses scam report with Army chief

Illegal encroachment of defence lands
What has MoD done to evict illegal encroachment of defence lands by unscrupulous elements having local political criminal connections? The DEO's are silent spectators to illegal occupation of defence lands in all the Military Cantonments.

Gymkhana Club Chennai- hijacked? Military made a scapegoat!

The prestigious Gymkhana Club, sited close to the TN area headquarters, was an exclusive facility for military officers. Until 1920, its membership was restricted to garrison officers only and, even today, the club grounds belong to the armed services. This club is now hijacked by Civilians, Industrialists and Bureaucrats and Garrison Officers reduced to personae non gratae (literally non entities) without voting rights. This is height of bureaucratic arrogance subjected on the defence forces! The Area Commander is made a dummy Patron of the Club to hoodwink the Garrison Officer- Members serving and retired.

Gymkhana Club, Chennai
The then Madras Gymkhana Club was in occupation of 44.13 acres of Defence land in a prime part of the city from December 1977 to November 1986 on payment of annual rent of Rs 3,526. Though a formal lease agreement had not been entered into with the Club till then, the Ministry of Defence sanctioned, in October 1990, the continuance of the lease only in respect of 8.608 acres of land retrospectively from November 1986 onwards at the increased annual rent of Rs.8,608 based on agricultural rates. No lease agreement was concluded even thereafter. Gymkhana Club, Chennai in occupation of 44.13 acres has an outstanding dues Rs 33.10 crores, which has not been recovered over the years.

The DEO, Chennai, recovered rent from the Club up to November 1991. Thereafter, he stopped accepting rent from the Club on the ground that it had resorted to unauthorised construction on the leased land and had also made alterations to the building thereon without the prior permission of the lessor and in violation of the lease agreement.

Audit scrutiny disclosed the following:
The Club had constructed 14 air-conditioned guest rooms, in respect of which rent ranging from Rs 900 to Rs 1,950 per day was levied, a beauty parlour, a Chinese kitchen, ice-cream parlour, etc. It had also sub-let a portion of the land to a bank without the prior permission of the lessor.
Keeping in view the Club’s commercial activities, the DEO had assessed that rent amounting to Rs 33.10 crore was recoverable for the period from November 1991 to June 2001, based on only 2.5 per cent of the land value, as against 5 per cent adopted for determining the rent payable by another club in the same station, that was also involved in similar commercial activities. Government’s approval for revision of rent as proposed by the DEO had not been obtained even after the lapse of over 4 years as of March 2002. The Directorate General of Defence Estates informed Audit in September 2002 that the draft lease for the period from December 1977 onwards and rate at which damages were to be recovered from the Club had not yet been finalised by Ministry.
MINISTRY OF DEFENCE: Status of encroached lands

Tailpiece
The MoD in connivance with Politicians have hijacked the prestigious and Exclusive Military Club. The present Committee Members of the club are spinning and reeking in crores of Rupees from membership fees from Industrialists, Bureaucrats and Civilians. The Military Officers are made joker members divested of any honour or dignity in the club! When the Military is fighting for upholding Warrant of Precedence of Military ranks, here we see slew of dishonour bestowed on Military Officers and Retired Officers. Defence Minister should intervene and ensure that dignity of Military Officers are upheld at all forums.

MoD: PIB Press Releases

Ministry of Defence
Shelling on line of control
Year-wise details of ceasefire violations along the Line of Control (LoC) in Jammu & Kashmir, including incidents of shelling since 2006 are given below...
Resettlement of Ex-Servicemen
There is no proposal to extend minimum pensionary benefits to the ex-servicemen who render less than 15 years of service...Important inputs and information presented to Lok Sabha in variance to ground realities! Number of ESM trained/ self employed/ resettled or details PBORs who have availed of facilities and concessions? DGR does not have the crucial statistics?
Utilisation of Defence Lands
Defence land is meant primarily for various defence needs. The requirement of defence land is gradually increasing and hence cannot be frozen at... What about Defence lands already encroached upon and its eviction status? Exploitation of Defence Lands: click me
NCC Units in Senior Secondary Schools
The Government does not propose to set up National Cadet Corps (NCC) Units in all Senior Secondary Schools in the country...
Sale of troops ration in open market
During the period from 2006 to 2009, one case of pilferage of special rations meant for Army to certain civilian shops at Chumathang in Ladakh region by personnel of a Unit in July, 2007 was ...
Review of Defence Procurement Policy
There is a provision of periodical review of Defence Procurement Procedure (DPP) every two years...
Condition of families of martyrs
Number of soldiers from various states killed on duty (Battle Casualties) during the last three years are as under...

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