Tag Archives: Department of Defence Production

PMO

Appeal to Independent Directors of BEL on Rs 7900 Cr Scam in IACCS Project

Leave a comment

To

Dr. Bhaskar Ramamurthi, Director at IIT, Chennai,
Dr. R K Shevgaonkar, Professor at IIT, Mumbai,
Mrs. Usha Mathur, ex-Secretary to Govt. of India,
Mr. Sharad Sanghi, Entrepreneur,
Shri Mukka Harish Babu, Practicing Chartered Accountant,
Shri Surendra Singh Sirohi, ex-Secretary to Govt. Of India,
Shri Vijay S Madan, ex-Secretary to Govt. Of India,
Dr. Amit Sahai, Joint Secretary (P&C), Ministry of Defence, Department of Defence Production,
Ms J Manjula, Distinguished Scientist & Director General-Electronics & Communication Systems, DRDO,

ushamathur@hotmail.com,
harish@harishassociates.com,
bhaskar@iitm.ac.in,
vc@bennett.edu.in,
secretarial@hfcl.com,
sdpns@nic.in

MASSIVE CORRUPTION IN AIRFORCE UNDERGROUND STRUCTURE, IMPLEMENTATION AGENCY DEFENCE PSU BHARAT ELECTRONICS SUSPENDS ITS OWN INVESTIGATING OFFICERS FOR UNEARTHING ROLE OF CMD & TOP OFFICERS

In an unprecedented move the defence public sector undertaking Bharat Electronics Limited (BEL) has suspended three senior officials, who unearthed massive irregularities in the Indian Air Force’s confidential IACCS project- underground bunkers- at 10 strategic locations. The three officials were part of Inquiry committee set up by the BEL’s Chief Vigilance officer (CVO) in July 2018 . The team exposing the role of high ranking officers and manipulation of awards of contracts in Rs.8000 Crore project had submitted the report in October 2018. Instead of taking action against the corrupt officers, BEL management led by its Chairman MV Gowtama, who himself is under the scanner in IACCS project, acted with vengeance and suspended the investigation team members.

It is pertinent to mention that after three-member probe committee submitted the report, BEL CVO , a senior IAS officer MR S.SHIVA KUMAR  1987 BATCH in his note dated 29 March 2019 exposed the deep-rooted corruption recommending strong action against erring officers and firms. Yet, the CMD , who is likely to be arrested if a probe is ordered, cracked the whip against inquiry committee members for doing honest job. This crackdown is in spite of  the fact that the CVO of the company as appointed by CVC of India had established and validated each point of the investigation report  and strongly recommended to management of BEL for immediate police and civil criminal action against concerned BEL officers and chief consultant of the project M/s RD KONSULTANT.  The role of senior DRDO officers is also under the scanner since it was DRDO which recommended and fully supported the name of RD Konsultant to BEL although it was done informally and BEL surreptitiously avoided DRDO role in the files.The role of DRDO officers was brought out and exposed by the BEL vigilance probe team which was suspended on 17 May 2019.  To distract the government’s IB report, CMD, BEL created suspension drama of three personal of BEL, 2 GM Vigilance and one manager to fooling the country. This shows the clear mockery of BEL management.

M/S RD KONSULTANT – DELHI  , which came out to be a shell company in investigation report , incorporated just 3-4 months before the award of PPR consultancy project with all false  and fabricated documents, and was wrongly  awarded DPR consultancy project also violating BEL own manual procedures as well CVC guidelines with a criminal intent of having control over all future activities of civil contract as well infrastructure/ Plant and machinery  items procurement worth more than Rs 3500 crores, as recorded in noting files  and  many senior management personals of M/S BHARAT ELECTRONICS , which is continuously being done since UPA CONGRESS REGIME 2011.

One very interesting fact of the whole case is that the two BHARAT ELECTRONICS senior management personals named Mr N.K. SHARMA DIRECTOR( MARKETTING) and MR CHANDERPRAKASH EXECUTIVE DIRECTOR (D&E) GAD, who were the chief &key persons for co ordinating the IACCS project getting approved from Indian air force, joined  a company named “OIS ADVANCE TECH” – 90% OWNDED BY MR SANJAY BHANDARI – famous arms dealer & power broker  and close associate of ROBERT WADRA immediately after their retirement from BEL in 2010 and 2011, and immediately after this this project got formally started by BEL . 

The detailed and very exhaustive investigation done by fact verification team in early 2018 and further investigation team in end 2018 and subsequently report by CVO of M/s Bharat Electronics has established the details of  massive corruption and mal practices done by M/S RD Konsultant, its associate/related firms and senior management persons of BEL  ( since 2011 onwards till now), by abusing their powers and violating all BEL manuals as well as documented CVC guidelines for tendering for award of civil project works and procurement of items worth more than 3500 crores.

These civil contract worth more than 1000 crores have been given of paper to reputed firms like M/S L&T but at almost 30 % higher and inflated rates (as also mentioned by then Director (Finance) Mr PRABHAT ACHARYA in file noting about more than 100 crore loss as well as violation of BEL Contract manual conditions as well as CVC guidelines) and after some period he resigned from company. After this project given to m/s L&T are being done by M/S RD consultant sister concern named M/S CS CONSTRUCTIONS at sites ( even MD- Mr Rahul Baucher  of M/S CS Construction used to come to BEL-Ghaziabad unit  for regular review meeting on behalf of L&T) – A serious violation of CVC  guidelines as well contract conditions of BEL & M/S RD KONSUL) , which seriously compromise the quality , as it is a very small petty company which in no way  has a technical capability and skill to deal such highly technical and secured project. This fact as validated by the fact that some sites were shown as collapsed during construction and crores of rupees were further approved by BEL management in name of deviation with fixing the responsibility on contractor.

The detailed design which was submitted by M/s R.D. Konsultants specified vendors for all the sub-systems which are used in the blast proof underground buildings. It is seen that these vendors are the same which they had brought out to be their partners during presented made by then during the Pre-qualification bid. The Order which was placed on BEL by Air Force was also based on the detail design report submitted by M/s R.D. Konsultants and hence all these vendors called in the order from Air Force were the same which were defined by M/s R.D. Konsultants.BEL has in turn placed many orders for the sub-systems based on the vendors defined by M/s R.D. Konsultants. A visit was made to the works of many of these European vendors by a team of engineers from BEL along with Air Force personnel. But is it said that the team was accompanied by a rep from M/s R.D. Konsultant and the visit was coordinated by M/s R. D. Konsultant. These foreign companies were allowed to supply materials on a single tender basis by the BEL chairman MV Gowtama. He in fact overruled his own officials and approved qualification of several firms despite they had failed to submit bid details during prescribed time. Such gross violation was similar to the ones seen during 2G scam. BEL Chairman violated the laid down norms by allowing these foreign firms despite objections duly recorded by the finance division.

All above shows a case of massive corruption, fraud and abuse of power with criminal intent and a huge loss to Government public money by BEL senior management persons in connivance with chief consultant, EX DRDO and some IAF officials. The whole investigation report findings are finally found true of the fact that as it is learnt from top BEL & DRDO sources last week M/s RD Konsultant has written to BEL MANAGEMENT that as his chief designer has left the company and the firm has gone bankrupt, he cannot give consultancy services to this project. Now on this bogus consultancy company’s  design, specifications and whole scheme of the project BEL management has already  spend thousands of crores of public money  and suppose its design does not work then who will own the responsibility of whole scam. Now the news that the firm M/S RD KONSULTANT is running out of project the reason could only be because his fraud has come out in media and BEL current management instead of taking legal action against the corrupt, trying to harass and victimize the honest and brave investigation team members ( in name of media leak- which even our prime minister call  as a strong pillar of democracy) .

The team which is suspended and currently facing all type of harassment, victimization and humiliation of suspension, but in spite of all pressures and threats, have unearthed this scam just to keep the spirit of national security and defence importance   and demand only for justice but calling for a detailed CVC/CBI/ED enquiry outside BEL management preview immediately and immediate intervention of MINISTRY OF DEFENCE for action on some BEL senior management for their misdeeds

A honest and sincere appeal to all  concerned officials of PMO/MOD /CVC/PRESS/JUDITARY that please take immediate action in this regard to keep “CHOWKIDAR “ alive in our souls  by safeguarding the honour of investigation team officials.

ABOVE ALL MATTER IS COVERED IN DETAILS BY  A REPUTED NEWPAPER

“FIRSTPOST”  IN ITS ARTICLE DATED 02 APRIL, 09 APRIL & 26 April 2019

Before publishing in media the matter was available with AF Intelligence, CVO, CBI, North Block, Chairman, DRDO, IB in March itself but god knows why any agency not take-up this matter seriously.

Hope you will take up matter seriously as you are responsible Member, Audit Committee and Director of BEL and may be aware of all developments from side of BEL management who are posing that matter is mare deviation of 50/60 lakhs as a bonafide fighter against defence corruption since more than 20 years I am fully aware of nexus. This nexus was designed by Retired Scientist of DRDO with ex DRDO chief because the U/G work of services was sole right of DRDO via SPIC, but when retirement stage these corrupt DRDO official gang create the scene and diverted this activity to BEL which doesn’t have any type construction division like DRDO have, U/G plant machinery experience either trading nor manufacturing in this tender only 500 cr electronics involvement can BEL claimed. As per investigation and observation it is clearly visualize that few greedy BEL official trapped in vicious DRDO official and for sake of few bucks they compromised with national security as well as their organization’s dignity. Please ask the vigilance report prepared by these three suspended BEL employees, Report is not an eye opener but will help govern to expose UPA era nexus who are responsible to siphon the defence budget under shadow of secrecy.

PMO, Uncategorized

RTI to Department of Defence Production on Scam in AICCS Project by BEL

Leave a comment

To                                                                                      10 June 2019

Shri Manmohan,

Under Secretary, (BEL),

Room No. 253-A,B-Wing, Sena Bhawan,

New Delhi-110 011

Hello,
Kindly provide me with the following information requested under the purview of the Right to Information Act, 2005 in respect  of news series published in First Post Apr 02, 2019 -Bharat Electronics in the dock for  compromising  confidential IAF project, favoring one vendor, BEL s internal inquiry report reveals. In response of enclosed RTI from BEL CMD confirmed that CVO, BEL investigated and prepared a report on IACCS project for irregularity and compromising in IACCS project. According to BEL, CMD received the investigation report on 02.04.2019 and on 21.05.2019 submitted his observation on recommendations of CVO, BEL.

  1. Whether CMD, BEL send such observation on recommendations of CVO, BEL to Ministry of Defence Production on IACCS Project.  Yes or No
  2. If yes, then date of receiving said CMD, BEL letter.
  3. Provide the certified copy of CVO, BEL, recommendations which enclosed by CMD, BEL (actual CVO recommendations matter is enclosed as PDF)
  4. Current status of the report, action taken till date by competent authorities.
  5. Provide the measures taken by competent authorities for protect the national security informations existing with M/s RD Konsultants and his associate related to AICCS project.
  6. Provide the action taken steps till date on M/s RD Konsultants the fraudulent transactions with M/s BEL as recommended by CVO, BEL.
  7. Provide the action taken steps till date on the committee members for violating company’s procedures & CVC guidelines and facilitated the selection of M/s RD Konsultants during evaluation of prequalification, without scrutinizing the submission of works experience, site visits and clearing the fake turn over documents of M/s RD Konsultants.
  8. Provide the action taken steps till date on Shri. Dibyendu Bidyanta, AGM(HR&A) and Shri. B.K. Pant, DGM (HR&A) who are involved and responsible for overlooked the criteria in Mr Manish Goyal appointment
  9. Provide the action taken steps till date on Mr Manish Goyal as CVO recommended suspension till departmental fair proceeding
  10.  Provide the action taken steps till date to maintain the CCTV and its record in all AICCS project sites as observed by CVO,BEL

Regards

Prabhu  Dandriyal,
21-Sunderwala, Raipur,

Phone 0135- 2787750, Mobile- 9411114879,
e-mail id prabhudoon@gmail.com  website www.corruptionindrdo.com

Registration Number                  DODFP/R/2019/50072

Recommendations:

  1. To blacklist M/s RD Konsultants for the fraudulent transactions with M/s BEL and also as the agency had involved in collusion of interest by executing the works through his affiliates M/s CS constructions Pvt Ltd, through subcontracting from M/s L&T. which has resulted in conflict of interest in the transactions with BEL . Financial penalty to be levied on M/s RD Konsultants as one way of punishment.

2        Disciplinary Proceedings to be initiated on the committee members   for violating company’s procedures   & CVC guidelines and facilitated the selection of M/s RD Konsultants during evaluation of prequalification, without scrutinizing the submission of works experience, site visits and clearing the fake turn over documents of M/s RD Konsultants. Theviolations were brought in the Corporate Vigilance observations points 1-15.

The following committee members are to be held responsible even though few of the delinquent officers are retired

  1. R K Handa then GM(NCS)     – Retired
  2. Gurjeet Singh then Sr. DGM(CS) – Retired
  3. T.K. Moitra    then DGM(F&T)
  4. Virender Kumar    then DGM(AC) CS
  5. Saleem Parveez.    Manager (Civil) CS

3       With respect to appointment of Mr. Manish Goyal, it is observed that his experience falls short of minimum criteria of 10 years. These facts are not checked by HR/GAD. Disciplinary Proceedings on Shri. Dibyendu Bidyanta, AGM(HR&A) & Shri. B.K. Pant, DGM(HR&A)  who are involved in the recruitment of Shri. Manish Goyal, as per CDA rules. Mr. Manish Goyal shall be kept under suspension henceforth for fair conduct of department/legal proceedings.

4  The unit has not prepared their own instructions and procedure duly approved by the board for the appointment of consultants to ensure that the selection is made with maximum attention to the suitability, competence and proven track record.

  1. CCTVs installed at the behest of vigilance has not kept in proper record which led to non-maintenance of measurement books, subleasing and collusion of parties.
  2. It is important to mention that IACCS is a time bound project of armed forces viz Air Force. Hence care to be taken to ensure customer get real value for money. procedural proprietaries are maintained, no collusion of interest and involve customer at all possible levels, abiding by CVC guidelines and no corrupt practices are involved, in such important projects.

CVO

 

 

PMO, Uncategorized

Vigilance chief recommends action in Rs 7,900-cr IAF project scam, even as BEL’s management hunts down whistleblowers

Leave a comment

Yatish Yadav Apr 26, 2019 – Firstpost

New Delhi: The top vigilance officer in Bharat Electronics Limited (BEL) has recommended action in the Rs 7,900-crore air defence scam uncovered by Firstpost, but it is learnt that the top management has launched a hunt to identify the whistle blowers in a bid to cover up the revelations, which point towards a conspiracy involving BEL officials and private companies including foreign vendors.

The chief vigilance officer (CVO) Shiva Kumar has recommended the blacklisting of the design consultant of the Indian Air Force’s (IAF) sensitive air command and control centres, and action against eight BEL officers for allegedly favouring domestic and foreign companies at the cost of taxpayer money and national security.

The CVO, in the recommendation note highlighting the deep-rooted corruption, has said irregularities in the Integrated Air Command and Control System (IACCS), which started in the UPA regime, were carried out with criminal intent and government rules were flouted in awarding contracts for civil work as well as plant and machinery.

“There were serious violations involving criminal intent through violation of procedure, misrepresentation of facts to management, favouritism to place order on pre-fixed vendors through vested interest, collusion of interest and attempts to make corporate losses. The unit (BEL) has violated MoF (Ministry of Finance), GFR (General Financial Rules) and CVC (Central Vigilance Commission) guidelines while appointment of consultants, contracts for execution of civil works and procurement of items for plant and machinery and various subsystems,” the CVO directives reviewed by Firstpost said.

The comment by the CVO on the role of accused officers clearly indicates the need for not just departmental action but the initiation of criminal proceedings under the Prevention of Corruption Act and other penal provisions as well. A questionnaire sent to MV Gowtama, chairman and managing director (CMD) of BEL, seeking comments went unanswered. Department of Defence Production, Ministry of Defence and the CVC did not respond to a questionnaire sent on 20 April.

However, sources in the CMD’s office revealed there had been no move so far to act on the findings and recommendations of the vigilance department, but a discrete hunt has been launched to locate whistle blowers.

Vigilance chief recommends action in Rs 7,900-cr IAF project scam, even as BELs management hunts down whistleblowers.
“In this regard, top management is penetrating the computer and electronic records of all BEL employees in Bengaluru and Delhi,” sources in the CMD’s office said on condition of anonymity.

Sources quoted above also claimed that the top BEL management went into a huddle after the publication of the Firstpost investigation and subsequent recommendations by the CVO. It is learnt the officials were threatened for reporting massive irregularities in the project to the Prime Minister Office (PMO), defence ministry and the CVC.

The witch-hunt and silence of the BEL management is intriguing despite the CVO categorically pointing out the conflict of interest. The CVO said the design consultant of the highly-sensitive underground automated air defence command and control centres, M/s RD Konsultants should be blacklisted for the fraudulent transactions with BEL.

“Also as the agency (RD Konsultants) was involved in collusion of interest by executing the works through its affiliates, M/s CS Constructions Private Limited through subcontracting from M/s L&T, which has resulted in conflict of interest in the transactions with BEL. Financial penalty to be levied on M/s RD Konsultants as one way of punishment,” the CVO said.

According to sources in BEL’s finance division, since the IACCS project is worth Rs 7,900 crore and directly linked to national security, the audit committee comprising independent directors may recommend a probe by the Central Bureau of Investigation (CBI). The finance division of the defence PSU had raised several objections over the award of contracts flagging rule-books but the officers were overruled by the top brass. Even BEL officer Nataraj Krishnappa, director (other units) had raised objections while processing a certain contract. Sources close to Krishnappa confirmed that a criminal investigation may be on the cards. A CVO is considered the extended hand of the CVC and constitutes an important link between the concerned organisation, vigilance watchdog and the CBI.

As far as the eight accused officers’ roles are concerned, the CVO has observed that disciplinary proceeding including the suspension of an officer working in the infrastructure division (network-centric system), should be initiated for violating procedures and CVC guidelines, which eventually resulted in favor to M/s RD Konsultants.

“It is observed that there was suppression and concealment of facts by the committee in the proposal initiated during 2013 with respect of appointment of a consultant during 2011, for preparation of a preliminary project report. It is pertinent to mention that in the proposal for appointment of consultants during 2011, there is a noting from Senior DGM (Finance) that as per CVC guidelines issued dated 24 June, 2011, if M/s RD Konsultants is hired as a consultant for preparing a preliminary project report, then it cannot be considered for future similar requirements for an IACCS project. Although the proposal was agreed to by CMD, these facts are not brought in the consecutive file raised and the committee have succeeded to give an order on pre-fixed vendor M/s RD Konsultants. Because of concealment of information with regard to previous appointment and delinking of old files and notings, it led to misrepresentation and concealment of facts which resulted in the placing of order with prefixed vendor M/s RD Konsultants, although an open tender has been called for formality,” the CVO note said.

The scathing CVO note also reveals that entire scam was engineered since screening stages in 2011 and 2013. It said that the defence PSU’s committee, comprising officers, constituted to select the consultant did a shoddy job with a clear intention to favour a particular vendor.

“It is observed that the committee during the initial screening has brought down 26 agencies to 14 agencies with shallow scrutiny and with total arbitrariness. After presentations further screening has resulted in qualifying only six agencies. It is pertinent to mention that after presentations, M/s Super Dynamics was disqualified citing only two years turnover against the required pre-qualification of a three-year turnover. However, preferential treatment was given to M/s RD Konsultants. This shows a clear-cut case of vendor favouritism. During evaluation of pre-qualification criteria, the committee had violated the CVC guidelines and the company’s work contract procedures with respect to evaluation of documents submitted by M/s RD Konsultants, non-evaluation of relevant documents pertaining to works completed by M/s RD Konsultants. It appears that wrongful clearance was provided to M/s Konsultants and the committee had facilitated M/s RD Konsultants for pre-qualification by violating the company’s procedures, to place the order on pre-fixed vendor M/s RD Konsultants. The committee during evaluation of pre-qualification criteria had created confused trends by changing the pre-qualification criteria twice without any reason and during such changes, post facto approvals are taken from CMD, forcing the management to committee’s decision,” the CVO observed.

The CVO report has flagged collusion with design consultant and other vendors involved in sensitive air force installations at 10 locations across the country. The report has termed an affiliate as a benami firm, raising suspicion over the role and connivance of BEL officers. The CVO has also attacked the design consultant and BEL management for rigging the confidential contracts.

“The agency M/s RD Konsultants also was involved in collusion of interest by executing the works, through its own benami company M/s CS Constructions Private Limited which has resulted in collusion of interest in the transaction with BEL and capturing both design and execution of project. Under para 4B 3.2.3 of the design and engineering contract, M/s RD Konsultants and his affiliates as well as sub-consultants have been debarred from providing any goods works or service. It is observed that M/s RD Konsultants had violated the contract terms, CVC guidelines by involving in collusion with benami through rigging of contracts. This happened at various levels. The quote by M/s RD Konsultants was nearly the same as that which was estimated by BEL which leads to doubt whether the methodology of estimate was known to M/s RD Konsultants. It is pertinent to mention here that, PK Bhola, then DGM (Marketing-Network Centric System) who was the main resource in BEL for raising all the files and interfacing with customer for the project, joined M/s RD Konsultants after his retirement. This is a matter of great concern,” the CVO has noted.

The corruption in the project being handled by BEL was so blatant that even CCTV footage at the air force’s command and control centres construction site was compromised to facilitate the collusion as evident from the CVO report, which said the surveillance cameras were “not kept in the proper record, which led to non-maintenance of measurement books, subleasing and collusion of parties”.