SUBJECT : CORRUPTION IN PROCUREMENT OF ANTIVIRUS
COMPLAINT AGAINST : Mr. SARVESH KUMAR, SCIENTIST ‘F’ and Dr. ARVIND KUMAR SAXENA, DIRECTOR, DMSRDE, KANPUR
BRIEF FACTS OF THE COMPLAINT
- Defence Materials & Stores Research & Development Establishment (DMSRDE), Kanpur is an establishment under Defence Research & Development Organisation (DRDO), Min. of Defence, DRDO Bhawan, New Delhi.
- Purchase Management 2006 is applicable for procurement of store items in DRDO. Gross irregularities and violation of Purchase Management 2006 was made in procurement of Antivirus Software in year 2013 when the cases were indented by Mr. Sarvesh Kumar, Scientist ‘F’. The major irregularities and violations of purchase rules are given below.
i. Method/Mode of Procurement: Method of procurement in all the three cases of Quick Heal Antivirus was Local Board. When there was a consolidated demand of 372 Antivirus and total cost of the case was around Rs. 270000.00 then case should be raised under Limited Tender as per Rule 7.6 of PM 2006. Vide letter No. DMM/II/PP/0000207/M/3041/D(R&D) dated 15th Oct 2007 Corrigendum No. -2 Directors of Establishments are empowered to constitute Local Purchase Committee for purchase up to cost of Rs. 1.0 Lakh on urgent requirements by amending Rule 6(d) of PM 2006. Copy of the letter is enclosed as Annexure-7. The same rule is quoted here for ready reference.
Purchase of goods by purchase committee: Purchase of goods costing above Rs. 15,000/- (Rupees Fifteen Thousand) only and up to Rs. 1,00,000/- (Rupees One lakh) only on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee consisting of three members of an appropriate level as decided by the Director of Lab/Estt. The committee will survey the market to ascertain the reasonableness of rate, quality and specifications and
Identify the appropriate supplier. Before recommending placement of the purchase order, the members of the committee will jointly record a certificate as under. CFA will ensure that splitting of demands is avoided.
ii. Splitting of consolidated demand of Antivirus in three parts: Dr. Arvind Kumar Saxena split the consolidated the demand in three parts and misused his official position & powers so that case could not go under Limited Tender. In all cases of three local boards supply order was placed to the same vendor. This establishes vested interests of Dr. Saxena and Mr. Sarvesh Kumar using Local Board for purchase of Antivirus instead of Limited Tender. This leads loss to public fund and Corruption of Rs. 37920.00 by Mr. Sarvesh Kumar.
iii. As per provisions of Purchase Management 2006 Rule 5.1.1(b) –Purchase orders will not be split-up to avoid the necessity for obtaining sanction of the higher authorities. Copy of the rule is enclosed as Annexure-8. Sprit of Purchase Rules and CVC Guidelines is that “The proposals shall not be split merely to bring them within the delegated powers”.
iv. Local Board did not make market survey to ascertain the reasonableness of rate, quality and specifications and identify the appropriate supplier, rather one vendor M/s P. S. Computronics pre-fixed by Dr. Saxena was allowed to submit three quotations to Sarvesh Kumar and board members were forced to sign the certificates and other purchase related papers. Hence purchase procedure according to Purchase Management 2006 was not followed and grossly violated in this case.
3. Dr. Arvind Kumar Saxena, Director, DMSRDE, Kanpur and Mr. Sarvesh Kumar, Scientist ‘F’ are posted in DMSRDE, Kanpur. Dr. Arvind Kumar Saxena is Director, DMSRDE with effect from 01 January 2011.
4. Dr. Arvind Kumar Saxena, Director, DMSRDE dissolved Information Technology Division on 02 Dec 2013 and constituted a new division “Computer Science Division” under headship of Mr. Sarvesh Kumar, Scientist ‘F’.
5. Procurement and installation of Antivirus in all computers available in DMSRDE was one of the charters of Information Technology Division. Every year this division was purchasing about 300 units of Antivirus Licenses for security of PCs. These Antiviruses are having life time of one year from date of installation.
7. 300 units of Quick Heal Total Security Antivirus were purchased in the year 2012 on the basis of demand mentioned above. Details of procurement are given below. Copies of Supply Orders issued on 14 Nov 2011 are enclosed as Annexure-2.
9. During the period his posting at Information Technology Division, DMSRDE, Kanpur from 01.01. 2011 to 02.12.2013, Mr. Sarvesh Kumar, Scientist ‘F’ made following procurements as indenter on orders of Dr. Arvind Kumar Saxena, Director. Copies of the demands initiated by Sarvesh Kumar are enclosed as Annexure-3LIST OF CASES INDENTED AND ITEMS PROCURDED BY MR. SARVESH KUMAR, SCIENTIST ‘F’
10. In Information Technology Division, DMSRDE, Kanpur three Scientist Mr. R.P. Bhat, Scientist ‘F’, Mr. Sarvesh Kumar, Scientist ‘F’ and Mr. N.P. Gupta, Scientist ‘C’ were posted from 19 Feb 2012- 02 Dec 2013. Mr. R.P. Bhat, Scientist ‘F’ was Head of Information Technology Division.
11. IT Division sought Proposal for Antivirus for procurement of Quickheal Total Security Antivirus from M/s Well Known Computers Pvt Ltd, Kanpur in the year 2013 on 14.01.2013. Copy of the proposal dated 14.01.2013 is enclosed as Annexure-5. The details of the proposal Well Known Computers are as under.
12. In the year 2013, for procurement of Quick Heal Total Security Antivirus (300 Units) a Statement of Case was put-up to Dr. Arvind Kumar Saxena, Director, DMSRDE for procurement of Antivirus under Limited Tender through Head IT Division but Dr. Saxena turned down the case and constituted a Local Board for procurement of Antivirus. This Local Board was constituted of Mr. Sarvesh Kumar, Scientist ‘E’ (now Scientist ‘F’) Chairman, Mr. Sanjeev Kumar, Scientist ‘D’ and Mr. N.P. Gupta, Scientist ‘C’.
13. On direction of Dr. Saxena, Mr. Sarvesh Kumar split the demand of Antivirus licenses in three parts and gets financial sanction from Dr. Saxena, Director in three cases under Local Board. Total consolidated demands of 372 Antivirus licenses were split in three parts so that cases remain under financial powers (Rs. 1.0 lakh) of the Director and procurement could be made under Local Board. Details of procurement of Quick Heal Total Security Antiviruses in the year 2013 by Mr. Sarvesh Kumar, Scientist ‘F’ are given below.
These Quickheal Antivirus packs were received by Mr. Sarvesh Kumar on 11 Apr 2013 vide Receipt & Inspection Note (RIN) No. 14LP0009 and 14LP0010 dated 11 April 2013. Copies of the receipts are enclosed as Annexure-6.
15. It is very clear from the observation of the Purchase Proposal of Well Known Computers and procurements made by Mr. Sarvesh Kumar that the rates of Quickheal Antivirus are higher in later case. This lead loss to Government fund due to corrupt practices adopted by Dr. Arvind Kumar Saxena and Mr. Sarvesh Kumar. Comparative details of both cases are given below.
16. Before placing the order the IT division can see these online offers which are less then quoted price and negotiate for best price from vendors in the interest of organization. Even that the for bulk there paper license offers are available.
17. Therefore purchases made by Dr. Arvind Kumar Saxena and Mr. Sarvesh Kumar by split of consolidated demand of Antivirus lead loss to public fund by Rs. 37920.00 and in turn make a scope of Corruption.
VIOLATION OF DIRECTOR’S POWER AND CONDUCT RULES
i. Misuse of power & position for personal gain
ii. Violation of Rule 3(1) and 3(2)(i) and 3(1)(iii) of CCS(Conducts) Rules 1964 iii. Splitting of demands of Antivirus in three parts and Constitution of Local Board instead of Limited Tender for purchase of Antivirus iv. Sanctioning of three cases of purchases each just below Rs. 1.0 Lakh of his financial powers
AS HEAD “Computer Science Division” MR. SARVESH KUMAR, SCIENTIST ‘F’ VIOLATED THE DRDO PROCUREMENT RULES
i. Did not follow the purchase procedure of Local Purchase Committee. Didnot make any market survey instead collected three quotations by hand from representative of M/s P. S. Computronics, Kanpur and forced to sign on the papers to other two members of the board.
ii. Gross violation of conduct under Rule 3.(1) of CCS(Conducts) Rules 1964
Therefore, in light of the above mentioned facts and evidences, may kindly investigate the matter. This may be the “tip of iceberg”. Further investigation may reveal violations of procurement for personal gain in the tune of corers of rupees.
The classic example from DMSRDE, Kanpur is the violation of procurement rules for the purchase of “High Temp. Reaction Overhead System” 28,50,000 & “50 Ltrs. High Temp. Monel Reactor” 38,50,000. This split case example of where Director’s power is limited up to 50 lakh with a Hqrs rep. because without splited the system cost was Rs 62.5 lakh. The details will be followed.
Similar misadventure was committed several times in the name of technology development by Ex, DG, DRDO Dr V K Saraswat, where financial power was limited up to 50 corers and CAG in its special audit noticed violation of splitting the procurement cases while CCPA approved for Rs 150 corers.
RegardsPrabhu Dandriyal 21-Sunderwal, Raipur, Dehradun -248008 0135-2787750 – 91-9411114879 firstname.lastname@example.org, www.corruptionindrdo.com