To 8th April 2015 Hon’ble Shri Narendra Modi Prime Minister PMO, Room No 152 South Block New Delhi-110011
SUBJECT: Corruption in Procurement of Universal Testing Machine (UTM) at DMSRDE,DRDO, Kanpur by Dr. Arvind Kumar Saxena, Director.
DRDO corruption is challenge for your new government; continue constructions without utilizing the existing infrastructure and unnecessary procurement of systems/equipments without justification of needs are the common mechanisms of DRDO officials for minting money.
DRDO Directors are above the all constitution provisions like Dr. A.K. Saxena, Director, DMSRDE, DRDO, Kanpur still continue the corrupt practices on last leg of his service, despite several complaints (12 complaints) at CVC and Defence Minister, DG, DRDO etc.
DG, DRDO made two fact finding committees and it seems that those committees were managed by Dr. A.K. Saxena.
CAG make observation about corrupt practices at DMSRDE in its Report No. 24 (2011-2012)
Dr. A.K. Saxena several highly costly equipment and instruments have been purchased and some are under procurement process having no utility in any project and scientific activity in DMSRDE. Method of Repeat Order is being mis-utilised for getting fatty commission from vendors of his choice.
Further regarding these irregularities at DMSRDE, Kanpur, The Comptroller & Accounts General (CAG) in its report No. 24 of 2011-12 (Defence Services) Chapter 6-DRDO Para 6.2 – Procurement/receipt of equipment after the closure or at the fag end of a project mentioned that “Defence Materials and Stores Research & Development Establishment (DMSRDE) procured equipment worth 1.52 crore after technical completion of the project or at the fag end of a project. The project was completed with the facilities available in DMSRDE and other Labs implying that the procurement was avoidable”.
Corruption is criminal offence under Prevention of Corruption Act 1988, Indian Penal Code and CCS (Conducts) Rules 1964. On issues of Corruption the anti-corruption establishments like CVC, CBI, CVO & Ministries should be more serious as Corruption is crime against Government not against any individual. Corruption is the abuse of entrusted power for private gain. It is like rust that weakens the foundation of the Government System. Corruption is a termite to society and present in every system.
The Hon’ble Supreme Court said in its judgment dated 02 January 2013. Quoted here from judgment passed by a bench of justices B S Chauhan and F M Ibrahim Kalifulla in Civil Appeal Nos. 8814-8815 of 2012 the court said “Corruption in a civilised society is a disease like cancer, which if not detected in time, is sure to spread its malignancy among the polity of the country, leading to disastrous consequences,”.
Government is having policy of “Zero Tolerance for Corruption” as stated in DO letter No. 11017/04/2010-AIS-III dated March 3, 2010 which clearly states in para (3) that “The issue of corruption needs to be addressed fairly and squarely. The Government’s policy of zero tolerance for corruption must be implemented fully and effectively. Preventive vigilance should be strengthened. Transparency must be introduced in decision making and in all our systems. Stringent action must be taken against officers found guilty. Disciplinary proceedings must be expedited“.
Corruption is authority plus monopoly minus transparency. Despite my 12 complaints on corruption costing about 7.5 crores , no action has been taken against Dr. Arvind Kumar Saxena, Director, DMSRDE, Kanpur by CVC, CVO MOD and Director, Vigilance & Security (CVO), DRDO HQ and Ministry of Defence.
This attitude of anti-corruption agencies towards Dr. Arvind Kumar Saxena encourages him upto the extent that he again started corrupt practices in procurement at DMSRDE, Kanpur.
It is very relevant to mention here that based on my compliant to CVC on the subject “Complaint to CVC – DMSRDE FUME HOOD Procurement Case” dated 22 Jan 2014 costing Rs 45,76,005.00 the supply order was cancelled by Dr. Arvind Kumar Saxena and till date Fume Hoods were not purchased in DMSRDE as there was no requirement of the said item. Fume Hoods were procured from China and these Fume Hoods are still lying at Airport, New Delhi. Based on my complaint in said case the public money of Rs. 46 Lacs was saved as Dr. Arvind Kumar Saxena , Director, DMSRDE was procuring the said item on 300% high prices and getting about Rs 25 Lac as commission. The Million Dollar Question is that if there was no corruption in procurement of fume Hood then why the said Supply Order was cancelled?
On the same line a case was again indented on orders of Dr. Arvind Kumar Saxena in DMSRDE, Kanpur for procurement of UTM with following details.
The same instrument was again procured by Dr. Arvind Kumar Saxena who being Competent Financial Authority (CFA) gave sanction the procurement through Rubber & Adhesive Division in the year 2014 under Repeat Order. The supply order (Repeat Order) was placed to Pal Enterprises in Jan-Feb 2015 for the same item Precision UTM for Ceramic Composite (Tech. Spec. Attached) as stated above .
The following irregularities, violation of the Purchase Management 2006 (Purchase Manual of DRDO (PM 2006), criminal conspiracy and corruption establish in procurement of two UTM in DMSRDE, Kanpur on following grounds.
- The item supplied by Pal Enterprises was of INSTRON make which is OEM of the said UTM purchased at DMSRDE. INSTRON (an ITW company) is a Massachusetts based manufacturer of test equipment designed to evaluate the mechanical properties of materials and components, such as Universal Testing Machines (UTM). INSTRON is having its subsidiary in India known as INSTRON INDIA PVT. LTD., 3-C, P.M. TOWER, 37, GREAMS ROAD, Chennai, Tamil Nadu, India.
- Tender inquiry under Limited Tendering was not given to INSTRON India despite it was representative/Subsidiary of OEM in India.
- M/s Pal Enterprises, New Delhi was registered in DMSRDE on 30 July 2013 in category of Glassware & Hardware under 20 Lac capacities. Case was initiated on 13 August 2013 and this vendor was given tender inquiry on 04 September 2013 for Scientific Instrument costing Rs. 48,37,500.00 despite this vendor not supplied in category of Scientific Instruments and even not supplied any single item in DMSRDE.
- R.K. Jain, Scientist E’ was appointed as Chairman, Committee for Registration of Vendors in DMSRDE vide DO No. 10/AD dated 17.01.2013 with gross violation of PM 2006 as Chairman should be of rank Scientist ‘F’ or above.He registered Pal Enterprises on 30 July 2013 in capacity of 20 L under category Glassware and Hardware with registration number DMSRDE 013/02C/42 – 20L.
- The case of Precision UTM for Ceramic Composite was indented by Dr. Suresh Kumar, Scientist ‘E’ with demand No. DMSRDE/14ACD013 dated 13 Aug 2013 and demand cost was 45 Lakh .
- The case was processed under Limited Tender, although the cost of item was Rs. 45 Lakh and as per Purchase Management 2006 of DRDO, the case should be processed under open tender/Global Tender.
- The tender enquiry was send to Pal Enterprises and its dummy firms despite Pal Enterprises were registered in category Glassware and Hardware under capacity of 20Lakh.
- In Dec 2013-Jan 2014, for procurement of another case of Tensile Tester (UTM) from FFIT Division, Global Tender was published in News Papers for demand No. DMSRDE/TEX053 with estimated cost Rs. 49 Lac. Copy of advertisement for procurement under Global Tender is enclosed.
- It clearly establish conspiracy that to procure the UTM under Limited Tender was corruption and placing the Repeat Order establish splitting of the cases as there was demand of two UTM then these should be purchased in single case but since Director Financial powers is limited upto 50 Lac and total of 02 UTM were about 97 Lac which was beyond the Director Financial Limit so bring the case within Director limit the case was spitted in two parts. One UTM was procured through Limited Tender while other through Repeat Order by pet vendor of Dr. A.K. Saxena, M/s Pal Enterprises, New Delhi.
- Pal Enterprises is registered at Department of Trade & Taxes, Government of NCT, New Delhi with TIN No. 07700196997. Details are enclosed.
- The detailed documents like Supply Order, Receipt & Inspection Note (RIN) and specification of the Precision UTM for Ceramic Composite purchased in Applied Chemistry Division are enclosed
- CLAUSE 7.29(b) REPEAT ORDERS of PM 2006- “The repeat order is not placed to split the requirement to avoid sanction of the next higher CFA” was grossly violated as the purpose to place Repeat Order was to split the demands of two UTMs in two cases.
- The Financial Powers of Directors are sanctioned vide letter No. No. DRDO/DBFA/F A/83226/M/OI /2031 /D(R&D) dated 30 July 2010. Accordingly on page 5 of the letter it has been clearly mentioned that extent of financial powers delegated to Lab Director without concurrence of Finance is upto(i) Rs.50 Lakhs in each case Labs/Estts. On Open, Global or Limited Tender basis. (ii) Upto Rs 20 Lakhs in each case concurrence of on PAC basis. (iii) Up to Rs.2 Lakh in each case on Single Tender basis. Copy of the page (5) of the letter dated 3o July 2010 is enclosed.
- CENTRAL ANALYTICAL FACILTY DIVISION is exiting in DMSRDE where all costly scientific instruments and equipment are placed in centralised place to be used for the scientists of DMSRDE. Then why two UTMs costing about Rs. 97 Lakhs were purchased at DMSRDE.
This supply order has been issued on behalf of President of India, it clearly means that the Dr. A.K. Saxena, Director, DMSRDE, Kanpur was involved in criminal misconduct and breach of trust against Government.
It is requested that issue orders for through investigation and corrective measures to stop mishandling of public funds by Dr. Arvind Kumar Saxena, Director, DMSRDE, DRDO, Kanpur
Enclosed Documentary evidences total pages No
The Joint Secretary (Estt.) and Public Grievances & CVO,
Ministry of Defence, of India,
97, South Block,
New Delhi -110 105.
To Chief Vigilance Commissioner Central Vigilance Commission Satarkata Bhawan, A Block, GPO Complex, INA New Delhi – 110004