CORRUPTION IN PROCUREMENT OF DYNEEMA FABRIC AT DMSRDE KANPUR

SUBJECT: SCAM AND ASTRONOMICAL CORRUPTION IN PROCUREMENT OF DYNEEMA FABRIC IN DMSRDE KANPUR 

COMPLAINT AGAINST

1. MR. AMIT SARAIYA, SCIENTIST ‘D’, HEAD MATERIALS MANAGEMENT GROUP (2011-2012),
2. MR. SHIELANDRA KUMAR  SCIENTIST ‘E’, HEAD MATERIALS MANAGEMENT GROUP (2013),
3. DR. R. K. TIWARI, SCIENTIST, ‘F’, HEAD LIGHT ENGINEERING DIVISION (LED)
4. DR. D. N. TRIPHATI, ‘F’, HEAD RUBBER AND ADHESIVE DIVISION
5. MR. AK, SCIENTIST ‘D’ COMPOSITE MATERIAL DIVISION
6. MR. ARUN KUMAR SINGH, SCIENTIST ‘D’ COMPOSITE MATERIAL DIVISION & TECHNICAL STAFF OFFICER TO DIRECTOR
7. DR. DARSHAN LAL, CHAIRMAN, ‘STORES PURCHASE COMMITTEE’(SPC)
8. DR. DARSHAN LAL, CHAIRMAN

Sir,

BRIEF FACTS OF THE COMPLAINT

1. Defence Materials & Stores Research & Development Establishment (DMSRDE), Kanpur is an establishment under Defence Research & Development Organisation (DRDO), Min. of Defence, DRDO Bhawan, New Delhi.
2. 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 Dyneema Fabric in year 2011-2013 when the cases were indented by officers of Composite Materials Divisions  under illegal orders of Head, LED & Composite Division, Head MMG & Dr. A. K. Saxena, Director, DMSRDE.
3. Dr. A K Saxena Director is an incompetent, arrogant and corrupt administrator who has violated all the rules and regulations of purchase.  In earlier complaints pending with Central Vigilance Commissioner at New Delhi and now in the present case, it becomes amply clear that he is the ‘CENTRE OF GRAVITY’ of corruption menace in DMSRDE.  Para 5.1.1 of DRDO PURCHASE MANUAL 2006 clearly states that  following cautions shall be observed for purchasing stores:

• Bulk purchases will normally fetch quantity discount. This should, however, not lead to over-stocking resulting in expiry of shelf life or redundancy due to obsolescence.
• Purchase orders will not be split-up to avoid the necessity for obtaining sanction of the higher authorities.
• Open tendering should be adopted to ensure fair competition, unless it is considered expedient to follow other modes of tendering due to urgency. Purchases will be made from the lowest acceptable tenderer. Adequate care would be exercised to ensure that delivery from the vendor is within the specified time schedule.

4. Mr. R. K Tiwari,  Head Composite Division and also Head Light Engineering Division, Dr. D N. Triphati, Head Rubber and Adhesive Division, Mr. Amit Sariaya, Head MMG (2011-2012), Mr. Shielendra Kumar Accordingly Head MMG (2013), Mr. AK, Scientist ‘D’ and Mr. Arun Kumar Singh, Scientist ‘D’ possibly under heavy pressure entered into a criminal conspiracy with Dr. A K Saxena, Director  & CFA of splitting demands of the same items, details of which are mentioned below:
5. PROCUREMENT IRREGULARITIES OF DYNEEMA

Dyneema worth total estimated cost of Rs. 1.05 Crore was procured on limited tender basis by splitting requirement

• 11 demands below Rs.10 lakh (to avoid TPC) were raised during 16 months period (from May 2011 to Sep 2012) which were cleared by the SPC (Store Procurement Committee) dealing cases below Rs. 10.0 lakh, headed by  Dr.  Ashok Ranjan, Joint Director and Mr. Darshan Lal, Joint Director,  as Chairman of SPC 2011 and SPC 2012, Respective   supply orders placed during Aug 2011 to  Aug 2012.
• One demand raised by Mr. A. S. Parihar and Dr. D.N. Tripathi, Joint Director in Apr 2013 for which supply order is placed on Manglam Traders in July 2013 worth Rs 7.06 Lakh. One demand raised by Mr. Arun Kumar Singh and Dr R. K. Tiwari, Joint Director, in Feb 2013 for which supply order is  placed on SMPP Pvt. Ltd. in Nov 2013 worth Rs 25.8 Lakh.
• Point to be noted that there is no requirement for this store in such a huge quantity as there is no running project work on Bullet Proof Jacket with DMSRDE.
• Details are as show in table-1

Table-1

• Points to be noted that
  • The requirement split into demands below Rs. 10.0 Lakh to avoid TPC and open tender which would have fetched better quality at discounted prices.
  • Further 02 Supply Orders worth Rs 13.5 Lakhs were placed on a pet vendor Mangalam Traders, Kanpur. 02 Supply Orders worth Rs 12.5 Lakhs were placed on a pet vendor Shahi Traders, Kanpur 01 Supply Orders worth Rs 7 Lakhs were placed on a pet vendor Pee Cee Textile Stores Kanpur.
  •  06 supply orders worth Rs 58.5 Lakhs were placed on a pet vendor S M Pulp Packaging Pvt Ltd, a  manufacturer of molded pulp products, protective packaging, presentation packaging and Industrial packaging which turned to an Armour manufacturer over a period of two years  by adding  the armor division through buildup of technical knowhow in the strategic field while working with scientists of DMSRDE Kanpur on development of Bulletproof Jacket.(pls refer website http://smgroupindia.com/pulp-molded-packaging.htm).  SMPP Pvt Ltd was not registered vendor at DMSRDE from 01.01.2011 to July 2013, when the vendor supplied the Dyneema in DMSRDE.. It is interesting to see that BPJ developed by DMSRDE Kanpur is still waiting for a customer where as S M Pulp Packaging Pvt Ltd are established supplier for the same as they claim in the website that there BPJ is certified by HP White USA and TBRL Chandigarh a nodal agency of DRDO for ballistic testing.
  • Further 02 Supply Orders worth Rs 13.5 Lakhs were placed on a pet vendor Mangalam Traders, Kanpur. 02 Supply Orders worth Rs 12.5 Lakhs were placed on a pet vendor Shahi Traders, Kanpur 01 Supply Orders worth Rs 7 Lakhs were placed on a pet vendor Pee Cee Textile Stores Kanpur
  • Placement of these orders on limited tender to non-registered, known/ local vendors clearly exhibit vested interest through manipulation  in prices, quality etc so as to fetch financial benefits hence indicates financial corruption/ corrupt practices of giving business/ benefits to own firms

• Further interesting statistics out of above is as under
  • 04 demands worth Rs. 25.5 Lakhs were raised on 15^th Sep 2011 by Mr. Amit Kumar, posted in Composite Material Division, and Dr. R. K. Tiwari, Joint Director, through Light Engineering Division (LED) with a deliberate attempt to bypass Group Director of Composite Material Division, an honest person Dr. D. K. Setua for the reason that splitting of demand is not permissible as per the guide lines of DRDO’s Purchase Manual 2006.It is important to note that Mr. AK, Scientist ‘D’ is not a part of Light Engineering Division (LED). He is posted in Composite Material Division. How he can indent the cases of LED?
  • Further these demands were cleared in SPC meeting held on 28^th Sep 2011 and their tender enquiry was issued on same date 03^rd Oct 2011 and very magically all   the 04 No. Supply orders worth Rs. 28.5 Lakhs were fetched by the same firm M/s SMPP Pvt. Ltd. on same date  11^th Nov 2011.
  • Placement of these orders on limited tender to M/s SMPP Pvt. Ltd.  clearly exhibit vested interest through manipulation in prices, quality, quantity etc so as to fetch financial benefits hence indicates financial corruption/ corrupt practices of giving business/ benefits to own firms. SMPP Pvt Ltd was not registered vendor of DMSRDE during 2011-2013.

• In a nutshell point is that out of  Rs 1.05 crore only 02 supply order worth Rs. 16 lakhs were placed on OEM M/s DSM Dyneema BV.  Dyneema is a proprietary item of OEM M/s DSM Dyneema BV and procurement from OEM might have saved around 35% of the cost paid in form of custom duty, local dealer profit and other overheads which comes to Rs 25 to 30 lakhs of loss of poor tax payer’s money.

6.  From the facts stated above, it is amply crystal clear that prima facie material regarding Abuse of Authority by arrogant and corrupt administrator Dr. A. K. Saxena, Director DMSRDE exists.

• That he has created a robust cobweb of corruption system and that he entered into criminal conspiracy with Chairman’s of two successive SPC committee, Head Composite Division, Head Light Engineering, Head Finance Division  with an intention to cheat DRDO and exchequer’s money.
• In pursuance of the said criminal conspiracy,  Dr. A K Saxena, Director, present Head MMG,  and Mr. A K Singh, Technical Staff Officer of Director DMSRDE are tampering with evidence / documents that shall be prejudice to fair trial, investigation, trial or any inquiry.

7.    In view of the above mentioned facts and evidences it is earnestly requested that an order for through investigation of all procurement done by Dr. Arvind Kumar  Saxena after assuming charge as Director, DMSRDE, DRDO, Kanpur to stop further corruption and wastage of poor tax payers money.

Date: 09^th January 2014

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