Complaint against Dr A K Saxena, Director, DMSRDE, DRDO, Kanpur – Purchasing of Laboratory Microprocessor Based Programmable High Temperature Furnace

SUBJECT : Purchasing of Laboratory Microprocessor Based Programmable High Temperature Furnace at Exorbitant Price

Sir,

1. Sh.Rakesh Kumar Gupta, Scientist ‘C’ raised a demand of Laboratory Microprocessor Based Programmable High Temperature Furnace vide Demand No. DMSRDE/13552009 dated 30 August 2012.
2. SPC date 13^th September 2012
3. DRDO Hqrs approval 1^st October 2012
4.  Tender Date 1^st October 2012 (see the efficiency)
5.  Limited tender enquiries will be issued to vendors registered with R&D Labs/Estts, DGS&D, NSIC, other Government departments and to the firms of national repute who will be registered before their bid is considered as per Para 3.2.2.  Such tenders may also be invited from the Government designated agencies. While inviting limited tender enquiries, due care will be observed in selecting vendors, especially in the case of traders who are not the actual manufacturers/authorized agent, to ensure better after sale service. (Rule 7.6.1 PM 2006)
6.  Seven firms were mentioned in demand to which tender enquiries were sent. Out of these Modern Scientific Centre, Kanpur, Dhankar Enterprises, Kanpur,  Manglam Traders, Kanpur, Scientific Aid and Omega Furnace Industries, Banglore were registered in July 2013 at DMSRDE.
7.  In this case two firms Dev Industrial Enterprises, Mumbai and Inschem, Lucknow are non-registered firms.
8. As per PM 2006 Rule 7.6.1 “Limited tender enquiries will be issued to vendors registered with R&D Labs/Estts, DGS&D, NSIC, other Government departments and to the firms of national repute who will be registered before their bid is considered as per Para 3.2.2.  Such tenders may also be invited from the Government designated agencies. While inviting limited tender enquiries, due care will be observed in selecting vendors, especially in the case of traders who are not the actual manufacturers/authorized agent, to ensure better after sale service”.
9. Dhankar Enterprises is not registered for Scientific Equipment/Instruments at Commercial Tax Department, Uttar Pradesh then how tender inquiry was sent to Dhankar Enterprises. Copy of registration enclosed.
10. TEC was done on 6^th December 2012
11. TPC was done on 16^th Jan 2013
12. Supply was made on 27 Sept 2013 while in demand the delivery period was 3 months from date of supply order but SO was placed on 26 Feb 2013 that is delivery was made after 7 months (27 Sept 2013 – 26 Feb 2013 = 7 Months)
13. No VAT /Tax was claimed in SO as basic cost of item was 1681500.00 only.
14. Actual cost of item is Rs. 560000 + VAT 5.5% (560000*5.5% = 30800) . Thus total cost is 590800. But SO was placed for  Rs. 1681500.00. Hence item was purchased at very high price and commission of Rs. 1681500 – 590800 = 1090700.00 was made by Dr. AK Saxena, Director, DMSRDE, Kanpur. (Omega Furnace Industries, Banglore’s quotation for same specification furnace is enclosed for ready reference)
15. Stores Received on 27^th September 2013 vide RIN No 14LP0149
16. M/s Manglam Traders come in front and a review TPC was done,  under Chairmanship of  Dr. Sarfaraz Alam, Sc’G’
17. Para two of review TPC                                                                                                 “Now, the firm M/s  Omega Furnace Industries, Bangalore has intimated that billing and supply of stores will be done by their local dealer M/s Manglam Traders, Kanpur, vide letter of even no dated September 24, 2013”
18. Para three of review TPC                                                                                              “The finance rep told that the stores have been supplied by M/s Manglam Traders, Kanpur. Hence, the payment may be made to M/s Manglam Traders, Kanpur”      Para four of review TPC                                                                                                       
19. “ In view of aforesaid TPC recommends the following
20. Supply Order was placed to Omega Furnace Industries but by review TPC payment was made to Manglam Traders. This totally against Purchase Management 2006 rule of DRDO
21. In view of above details, it is clear Violation of Purchase Management 2006 Rule 7.15(a) Constitution of TPC/NC,  it is requested that registered the complaint against Dr A K Saxena, Director, DMSRDE and his blind followers who are mishandling the government funds for their own vested interest. A thorough investigation is needed to explore the relation between Dr A K Saxena, Director, DMSRDE and M/s Manglam Traders, Kanpur. It may be reveal crores of crores rupees scam in DMSRDE and RCI, DRDO.

 Brief facts of procurement of Laboratory Microprocessor Based Programmable High   Temperature .Furnace