Subject: DRDO corruption’s Heights that they even not leave the Knowledge Corner (Library)

Honorable Sir,

To enhance the knowledge of DRDO scientists and make them updated, Ministry of Defence provide library grant generously. Apart from this the pay commission has recommended special assistance for the purchasing of books/journals to individuals scientist.

The library budget of DRDO’s laboratory is a lucrative assignment for corrupt scientists. The scientist library in-charge has direct access to head of establishment.

The case of corruption in library procurement was first exposed at DIAT, Pune, where then In-charge Library Dr A K Tyagi, Sc ‘F’ did financial manipulation in Library. CVC has been found prima facie material against Dr A K Tyagi.  And Regular Disciplinary action was recommended on: 9/9/2013. Consequently DRDO Hqrs finally charge sheeted on 8th October 2013. Charge Sheet signed by Honorable Defence Minister, Sh A K Antony.

The case of Dr A K Tyagi, Sc ‘G’ is not an isolated case but DRDO labs in general have misusing the library grants and if serious enquiry is set up every lab will give foul smell.

The recent example of DMSRDE, Kanpur’s library procurement cases revealed the astonishing facts and figures of library procurement. The RTI helped to expose the corrupt practice prevailing in library procurements.

Enclosed case revealed that the DMSRDE officials are not following the DRDO Purchase Manual -2006. Even after cancellation of Supply Orders on 23 August 2012 the invoices dated 02 May 2012 were accepted while Supply Orders were placed on 27 April 2012. Thereby mischievously & fraudulently the supply of books were accepted in back date to get fatty commission from these vendors. This gross violation of rules & blunder took place even after cancellations of Supply Orders establish conspiracy against Government by Mr.  Jitendra Yadav and Dr. A.K. Saxena.

DRDO has become hub of corruption and honorable defence minister is requested to take a strong action to prevent further damage of moral and ethics.

Regards

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. Dr. Arvind Kumar Saxena, Director, DMSRDE, Kanpur and Mr. Jitendra Yadav, Scientist ‘E’ are posted in DMSRDE, Kanpur. Dr. Arvind Kumar Saxena is Director, DMSRDE with effect from 01 January 2011.
3. Complainant is retired Government servant from DRDO. Presently complainant is working as RTI activist and social worker to expose the Corruption in DRDO and other Government departments. Complainant is running a website corruptionindrdo.com for posting information related to Corruption and Financial irregularities in various establishments under DRDO.
4. Technical Library, DMSRDE is having annual budget of about Rs. 1.50 crore for procurement of Printed Journals (Periodicals S&T – Rs. 1.10 crore), Online Science Direct e-Journals (Rs. 25 Lakh) and S&T Books (Rs. 15 Lakh).
5. Mr. Jitendra Yadav, Scientist ‘E’ was appointed as Head, Technical Library in DMSRDE Kanpur vide Daily Order-I No. 29/AD dated 19.02.2012.
6. An application under RTI Act 2005 was filed to Mr. Sarvesh Kumar, Scientist ‘F’, Central Public Information Officer, DMSRDE, Kanpur by complainant on 25^th July 2013 regarding “Procurement of Scientific & Technical Books in Technical Library of DMSRDE”. Copy of the RTI dated 25^th July 2013 is enclosed as Annexure-1.
7. CPIO, DMSRDE, Kanpur replied by letter No. DMS/0369/RTI/101/41/Letter_2013 dated 26^th August 2013. Copy of CPIO reply dated 26^th   August 2013 is enclosed as Annexure-2. CPIO, DMSRDE provided partial information and it was informed by CPIO that fund expenditure in procurements of S&T Books in Technical Library in DMSRDE in respective years was as follows:

8.     Complainant was not satisfied with reply of CPIO and First Appeal dated 07 Sep 2013 was filed to First Appellate Authority, DRDO. By Order No. RTI/02/2091/F/2013/0142 dated 14 Oct 2013, First Appellate Authority DRDO ordered CPIO, DMSRDE to provide full information sought in RTI dated 25^th July 2013. Copy of First Appellate Authority Order dated 14 Oct 2013 is enclosed as Annexure-3

9.     CPIO, DMSRDE seek additional fee for information vide his letter dated 30 October 2013. Copy of the letter is enclosed as Annexure-4. Vide letter No. DMS/0369/RTI/FAR/2013/0013 dated 14 Nov 2013, CPIO provided information in 60 pages and in covering letter CPIO informed that No supply Order has been placed in FY 2010-2011 and No tender was called during FY 2010-2011 and 2012-2013. Copy of the letter dated 14 Nov 2013 is enclosed as Annexure-5..

1o.   The figures in information provided by CPIO were found self-contradictory and false as evident from summary of the information provided by CPIO.

11.    On perusal of the documents provided by CPIO, following noticeable information has been found. 

           a.     Seven invoices were found for the financial year 2009-2010 with following details: 

         b.      Supply Orders were issued by Head, Technical Library in FY 2012-13 for Procurement of Scientific & Technical books with following details:

1. Terms & Conditions of Supply Order as per DRDO Manual is enclosed as Annexure-13.
2. 
3. c.       Supply Order-1, Supply Order-2, Supply Order-3 and Supply Order-4 dated 27 April 2012 as mentioned in point(b) above were cancelled after 117 days on 23 August 2012 by Mr. Jitendra Yadav, Head Technical Library due to non-supply of books within delivery period of 90 days. It was mentioned in Para (2) of Terms & Conditions of Supply Order “This supply order shall automatically stand cancelled w.e.f. the next day after the date of delivery mentioned in this order”. Therefore supply orders were automatically stand cancelled after 90 days from issue of Supply Order (27 April 2012) i.e. w.e.f.  27 July 2012. Copies of letters No. TL/0510/WBF-2012 dated 23^rd August 2012 issued for cancellation of supply orders to four vendors are enclosed as Annexure-24 to Annexure-27.
4. d.         Twenty two invoices were found for the financial year 2012-2013 with following details:
5. e.  Books were supplied against four supply orders that were cancelled on 23 August 2012. The fake invoices were fabricated from back date but actual supplies of books were made after cancellation of supply order. This smack conspiracy, manipulation and tampering of records for Corruption.
7. 12.      During the FY 2012-2013 the following irregularities, gross violations of rules, loss of public fund and Corruption took place in procurement of Books.

8. MAJOR FINANCIAL IRREGULARITIES & BLUNDERS IN PROCUREMENT OF BOOKS BY  MR. JITEDNRA YADAV, SCIENTIST ‘E’ & DR. A.K. SAXENA, DIRECTOR

   1)          DRDO Manual of Procedures for Management of Libraries and TIC 1999 as amended and Purchase Management 2006 as amended are being used in DMSRDE, Kanpur for procurement of books & periodicals. Rule 4.2 of Chapter 4 (ACQUISITION) of Manual is applicable for procurement of Books & Monographs. Copy of relevant rules of chapter 4 are enclosed as Annexure-50.

   2)           As per Rule 4.2.2 of this Manual selection of vendors should be made on the basis of their past services provided to the library, distributorship of publishers and infrastructure available with them. In the years 2009-2010, 2010-2011 & 2011-2012 there was almost no supply of books and only three vendors get supply orders in 2009-2010 and supplied books. Also these vendors offered 30% discount on books (Foreign & Indian).

   3)          In the FY 2009-2010 mode of tendering was limited tender of PM 2006 to get better discount and competition to save public money and this results 30% discount on books.

   4)          In FY 2012-2013 violations of rules and procedures of procurement of books were grossly violated to achieve fatty commission that results financial loss to exchequer. Supply Orders were issued to vendors without keeping in view the past services of the vendors. This results cancellation of all supply orders that took place on 27 April 2012. Hence these vendors should be blacklisted for further procurement of books in Library. But even after non-supply and automatic cancellation of supply orders after expiry of delivery period of 90 days, the supply orders were issued to same vendors on 17 August 2012.

   5)          Supply Orders were placed on single tender and 10% discount to pet vendors of Dr. A.K. Saxena, Director and all vendors were from New Delhi only. Adopting the process of single tender with 10% discount without following previously adopted procedure of limited tender where vendors were offering discount of 35% – 40% on purchase of foreign books, resulted huge loss of public money and commission making by Mr. Jitendra Yadav and Dr. A.K. Saxena.

   6)          Even after cancellation of Supply Orders on 23 August 2012 the invoices dated 02 May 2012 were accepted while Supply Orders were placed on 27 April 2012. Thereby mischievously & fraudulently the supply of books were accepted in back date to get fatty commission from these vendors. This gross violation of rules & blunder took place even after cancellations of Supply Orders establish conspiracy against Government by Mr.  Jitendra Yadav and Dr. A.K. Saxena.

   7)          There was no procedure followed for selection of books. In fact there was no requirement of books from Scientists as no demands were made. There was no procurement of books in past two years and only Rs. 94833.00 was expenditure in purchase of books in FY 2009-2010.

   8)          It is crystal clear that Corruption took place in FY 2012-2013 where all of sudden books of Rs. 1467810.00 has been procured while in previous years it was “NIL” or very less Rs. 94833.00 only in 2009-10. Demand of books which was NIL (Zero) in 2010-11 and 2011-12 has increased all of sudden near about to the Rupees 15 Lakh. As compared to purchase of books in FY 2009-10 the hike in 2012-13 is about 15.5 times. This indicates that books were purchased without any need and requirement just to earn fatty commission.

   9)          DRDO is having very old manual issued on 11 January 1999 regarding Management of Library/TIC of DRDO. This manual is called as “DRDO Manual of Procedures for Management of Libraries & Technical Information Centres“. After issuance of Purchase Manual -2006 of DRDO this old Manual became ineffective & obsolete. Most of the DRDO Labs/Estt. are using Purchase Manual for procurement of books, Print Journal and Online E-Journals. DMSRDE is also using PM-2006 from last six years for procurement of books, Print  Journal and Online E-Journals as can be verified from records of Technical Library of DMSRDE, Kanpur. All of sudden making purchase of books on the basis of old manual smacks malafide intentions and leads corruption in purchase of books in FY 2012-2013. In fact in year 2012-2013 provisions of DRDO Manual of Procedures for Management of Libraries & Technical Information Centres has not been fully followed. Purchase procedures of DRDO Manual are for small & urgent procurement not for big procurements in tune of lakh or crores.

   10)      Fatty Commission in Procurement of books in FY 2012-2013: Books of Rs. 1467810.60 were purchased at discount of 10% only while in year 2009-2010 the discount on books was 30%. Even in FY 2011-2012 the offered discount by vendors were 35% and now days vendors are offering 40% discount on foreign books. Therefore books were purchased at very high prices on very low discount of 10% only with gross violation & spirit of Purchase Procedures to get maximum discount in open competition under limited tender to save public money. Therefore Rs. 440343.00 (30% of 1467810.00) had taken as fatty commission by Mr. Jitendra Yadav and Dr. A.K. Saxena, Director, DMSRDE.

   11)      Fraudulent supply of books with fake invoices: In FY 2012-2013 four vendors   submitted invoices dated 02 May 2012 against the supply orders dated 27 April 2012 while these Supply orders were cancelled on 23 August 2012 by Mr. Jitednra Yadav, Scientist ‘E’ , Head, Technical Library. The supply on 02 May 2012 was impossible as it takes at least 5 days to reach speed post from DMSRDE dispatch section to the respective vendor. The details /entries of invoices shows that these invoices were not diarised at Director Office central registry and directly entertained by Head, Technical Library. Besides the verification records like receiving of invoices & books at Technical Library, envelops of invoices, CRV, payments by ACDA & records at Finance Division will disclose the whole conspiracy made in procurement of books in back date even after cancellation of supply orders.

   12)      Splitting of consolidated demand of books in four parts: Dr. Arvind Kumar Saxena split the consolidated demand of books in four parts and misused his official position & powers so that he can get fatty commission from his pet vendors. The books should be procured in one consolidated demands with proper negotiations with vendors to get maximum discount offered in open market. Four supply orders were issued on 27 April 2012 to four vendors that were not made any supply in past four financial years in DMSRDE. This splitting of books demand leads loss to public fund and Corruption of Rs. 440343.00 by Mr. Jitendra Yadav and Dr. A.K. Saxena, Director, DMSRDE. Sprit of Purchase Rules and CVC Guidelines is that “The proposals shall not be split merely to bring them within the delegated powers”.

   CHARGES ON DR. ARVIND KUMAR SAXENA, DIRECTOR, DMSRDE

   1. Misuse of power & position for personal gain
   2. Splitting of demands of books in four parts to get fatty commission
   3. Planned conspiracy to accept supply even after cancellation of Supply Orders

   CHARGES ON MR. JITENDRA, SCIENTIST ‘E’, HEAD, TECHNICAL LIBRARY

   i.            Planned conspiracy for Corruption in procurement of books in FY 2012-2013 to earn fatty commission from vendors by issuing supply orders on only 10% discount

   ii.            Gross violation of rules in selection of vendors, splitting of demands

   iii.            Acceptance of supply even after cancellation of supply orders with tampering of records in back date

   iv.            Misconduct under Rule 3.(1) (iii) of CCS(Conducts) Rules 1964

   Therefore, in light of the above mentioned facts and evidences, I may kindly request  you to issue order for inquiry and disciplinary action against Mr. Jitendra Yadav, Scientist‘E’ and Dr. Arvind Kumar Saxena, Director, DMSRDE by CVO, Ministry of Defence.

   Regards

   Prabhu  Dandriyal,
   21-Sunderwala, Raipur,
   Phone 0135- 2787750, Mobile- 9411114879,
   e-mail id prabhudoon@gmail.com  website www.corruptionindrdo.com
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