Tag Archives: Ministry of Defence

PMO

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

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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

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

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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”.

Drdo

Nirmala Sitaraman gave more teeth to corrupt DRDO

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Latest step taken to enhance financial powers of DRDO officials without fixing the accountbility and ignoring all the .corruption complaints, right from Dr V K Sarswat to various, C C R&D, DG, like Dr K D Nayak, Dr Selvamurthy, Dr Guru Prasad, Director s like  Dr.A K Saxena, Dr Lokendra Singh big Drama of Bio toilet, the list of very long

It seems Nirmala Sitaraman not having time to have a look at the piled up  files of CVO, MoD and Director Vigillang & Security, DRDO

Or is she repeating the history of Ministry of defence when Congress government replaced Sh Pranav Mukherji with Sh Antony with some unseen motives.

Jai ho

27-June-2018 16:10 IST
Press Information Bureau
Government of India
Ministry of Defence

To enhance efficiency and effectiveness of Defence Research establishments,
Raksha Mantri Smt Nirmala Sitharaman has decided to delegate greater
financial powers to various authorities. This wind of change in Defence
Research and Development (R&D) is intended to neutralise the ill-effects of
over-centralisation and facilitate quicker decision making. This is in line with
similar financial delegations made to Armed Forces in the last one year. The
delegated powers now stands enhanced as under:-
Powers of Secretary, Defence R&D to sanction projects and for
procurements enhanced from Rs. 75 Crore to Rs. 150 Crore and for the
Directors General (DG) enhanced from Rs. 50 Crore to Rs. 75 Crore
Enhancement of powers for Proprietary Article Certificate (PAC) cases
From Rs. 50 Crore. to Rs. 150 Crore for Secretary Defence (R&D);
From Rs. 25 Crore to Rs. 75 Crore to DGs;
From Rs. 2 Crore to Rs. 5 Crore for Lab Directors.
Enhancement of powers for Single Tender cases
From Rs. 50 Crore to Rs. 75 Crore for Secretary Defence (R&D);
From Rs. 25 Crore to Rs. 37.5 Crore for DGs;
From Rs. 1 Crore to Rs. 2.5 Crore for Lab Directors.
All Competent Financial Authority empowered to reallocate funds, reduce
and enhance costs of projects/programmes within their delegated powers.
The powers of Director General (DG) have been enhanced from Rs. 3
Crore to Rs. 5 Crore for sanctioning Research projects to Universities,
Technological Institutions and to Indigenous Defence Industry under the
Technology Development Fund Scheme of DRDO.
Powers of post-contract management and maintenance support in respect of
contracts for which CFA is the Ministry of Defence, have been delegated to
Directors General of DRDO in line with the delegations already made to
the Armed Forces.
Delegations for Hygiene and Maintenance Contracts, training expenses,
miscellaneous and contingent activities have been rationalized and
enhanced to ensure that sanctions are given at the Director and DG levels
with minimal flow of files to DRDO HQ.
Consequently, the powers for sanctioning of projects and for procurements that
were hitherto with the Secretary Defence R&D have now been delegated to the
Directors General of DRDO and the delegation to the Secretary, Defence R&D
has been doubled, A number of powers relating to day-to-day functioning that
were centralized at DRDO HQ have now been delegated to the DGs and Lab
Directors. The delegations also bring flexibility in Universities and by
indigenous defence industry. All the delegations that had been made in respect
of the services have also been extended to the DRDO.
The Director Generals of DRDO has expressed their satisfaction at this major
initiative by the Government and have opined that these forward-looking
measures would ensure that majority of the decisions relating to
implementation and functioning would largely be taken within the technology
clusters whereas policy issues would primarily come to the Government. Given
the geographically dispersed Clusters and Laboratories, this will be greatly
reduce file movements to and from the DRDO HQ at New Delhi and facilitate
faster decision-making.

 

Drdo

DRDO needs a major overhaul: House Panel

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DRDO needs a major overhaul: House Panel

A parliamentary panel, which examined the issue of preparedness of the country’s armed forces, defence production and requirement, has taken a dim view of the functioning of Defence Research and Development Organisation and felt it needs a “major overhaul”.

DRDO is the premier institution in defence research in the country, with more than 50 laboratories, 500 scientists and 25, 000 other scientific, technical and supporting personnel and has a budget of Rs 13,600 crore, which is about 5.5% of the total defence budget.

Noting that DRDO and Defence Public Sector Undertakings (DPSUs) are expected to be storehouses of strategic know-how in the development of missiles, armaments, light combat aircrafts, radars, electronic warfare systems and other defence hardware, the Parliamentary Standing Committee on Estimates wondered as to why the country has to depend on foreign suppliers not just for sophisticated weapons but also for basic defence armaments.

“DRDO has not been able to meet nation’s expectations… the committee is of the view that the functioning of DRDO needs a major overhaul and its contribution in the context of country’s requirements need to be examined,” the panel said in a report which was adopted in its meeting on Tuesday.

The report is yet to be presented before Parliament.

The panel also referred to a CAG report of 2015 which had said that an examination of 14 mission mode projects carried out by DRDO laboratories revealed that all projects “failed to achieve their timelines” and the probable date of completion was extended many times.

The committee also flagged another report of a high-power committee constituted by the Ministry of Defence, which had reviewed the functioning of DRDO and had said that at least 11 laboratories of the organisation need to be closed down or amalgamated and its “non-core” research activities need to be stopped.

Referring to the high-power committee’s recommendation that DRDO needs to work with clearly defined objectives to develop weapon systems and platforms, the panel said that it feels that the end users – the three services – must be consulted on areas of research and development of weapon systems.

The panel also recommended the formation of an inter-ministerial group to facilitate collaboration among organisations such as SRO, DRDO and DPSUs.

It also called for “clear-cut road map” for meeting targets of Defence Production Policy, 2018, which aims at making India one of the top defence producers by 2025 with self-reliance in 13 areas covering almost the entire range of weapons and systems.

Drdo

‘Top DRDO and Army officers wrongfully sanctioned Defence projects’

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Prateek Goyal=Monday, April 2, 2018, Sakal Times
Pune: PK Mehta, Director General of city-based Armament and Combat Engineering Systems (ACE), a Defence Research and Development Organisation establishment, and Major General Ajay Gupta, Director of Ahmednagar-based Vehicle Research and Development Establishment (VRDE) are facing allegations that they have misused their financial powers for sanctioning of fallacious defence projects costing Rs 93 crore.

 “Projects worth Rs 93 crore sanctioned allegedly without Army requirement”

A complaint was received by the Prime Minister Office and DRDO HQ, Ministry of Defence, about sanctioning of projects without project requirement from user – the Army in this case. The matter was reported by a serving officer of Indian Army to MOD and PMO.

The complaint letter dated March 11 states that the three defence projects were aggressively pursued by Gupta and sanctioned by Mehta in later half of 2017, without any requirement from the Army.

Corruption in DRDO
A highly placed source in DRDO lab, on condition of anonymity, told Sakal Times that the process of sanctioning of technology demonstration projects in DRDO has become very casual. The projects are being sanctioned without issuance of PSQRs from users’ (Army, Navy, Air Force) participation and requirement. He said, “It’s high time the Ministry conducts an enquiry in sanctioning of projects as there is lot of corruption going on in DRDO.

The sanctioning authority with Mehta is Rs 50 crore per project while Gupta’s power is Rs 5 crore per project. Together they have sanctioned projects worth Rs 93.67 crore.”

Mehta’s defence
When Sakal Times contacted Mehta, he said, “Many a times, users are not aware of the technology so there are projects which are sanctioned without their requirement. It is sanctioned only after being reviewed by various experts. Even after the sanctioning, we have to look for the outcome, because in research and development there are chances that a project can be a failure.”

“Interest of nation is most important and we have to be independent in the manufacturing of defence projects and we are working on it under ‘Make in India’ programme of government,” added Mehta.

Despite repeated attempts to contact Gupta on phone and through texts, he was not available for comment.

Experts fume
KK Mishra, Joint Director (Retd), DRDO, said, “How can they sanction the projects without requirement from users. Defence projects are not some college projects one should remember that huge amount of money is invested in them. Participation of user is required before sanctioning of such projects. Many a times senior authorities sanction such projects for their own benefits. In past also people have sanctioned projects and gained monetary benefits from them.”

Defence expert Lt Gen DB Shekatkar (Retd) said, “It is surprising that a project has been sanctioned without requirement of user. For procurement of any armament or equipment for armed forces, user requirement is necessary. Such matters should be inquired into by Army headquarters.”

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Hotelier Narang sends notice to agencies in property case

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By ABHINANDAN MISHRA | New Delhi | 16 July, 2017 Sunday Guardian

    The notice sent by Sanjay Narang to Y. Ashok Babu

Notice to whistleblower raises questions about secrecy.

The whistleblower in the Sanjay Narang property case in the Landour cantonment area of Mussoorie has been served a notice by Narang, raising serious questions regarding the government’s onus to maintain confidentiality of such complainants, who have often been attacked.

Narang has served a notice to Y. Ashok Babu, estate officer of the Institute of Technology Management (ITM), which is a laboratory of the Defence Research and Development Organization (DRDO), asking him “to either substantiate with evidence the allegations made by you, or to unconditionally withdraw these allegations within seven days, failing which I reserve my options open to file a case against you personally for defamation under section 499/500 of the Indian Penal Code, as your letter to the CVC/CBI (and circulated to the media) was sent by you in your personal capacity”.

A copy of the notice has been forwarded to the DRDO, the Central Bureau of Investigation (CBI), the Central Vigilance Commission (CVC) and multiple departments under Ministry of Defence (MoD). The Sunday Guardian also has a copy of the same.

Ashok Babu had earlier filed a complaint with the CVC seeking a probe into the irregularities regarding Narang’s properties which are located in the sensitive area of Landour cantonment and adjacent to the ITM laboratory.

Ashok Babu had pointed out that several commercial establishments were running in Landour, allegedly without permission, and they posed a security threat to the defence establishments. He had stressed that this could be “bigger than the Adarsh housing scam”.

The Ministry of Defence was forced to take stock of the situation at the Landour cantonment. The CVC had asked for comments from all departments concerned. A fact-finding mission comprising senior officials of the department of defence estates had visited Landour later. Narang has stated in his notice: “I have been questioned by the CBI and the officials of the Cantonment Board Landour (CBL) based on the false complaints made by you against me and by your action of feeding completely false information to various media outlets. The purpose of this letter is to place on record the correct facts pertaining to each of your allegations made to the CBI, CVC and media.”

Reached for comments, Ashok Babu, while acknowledging that he had received the notice, said that the “matter was sub judice”.

Sources close to him said the whole development was a matter of great concern for whistleblowers. “How can the content of a complaint filed by a government servant with the CBI, Ministry of Defence and the CVC reach a private individual, an individual against whom the complaint is filed? A senior government servant is being threatened with a notice for whistleblowing against corruption,” an official source said.

Drdo

CBI carries out searches in Rs 500-crore land scam in Delhi

The CBI today carried out searches at seven locations, including the office and residential premises of an army officer, in an alleged land fraud worth Rs 500 crore.
By: PTI | New Delhi | Updated: May 15, 2017 9:17 PM

The case relates to alleged fraud by Lt Col M G Thimmaya, the then Estate Manager, DRDO, and a property developer N H Rustumji in filing a joint memo before the Supreme Court in a land dispute matter. (PTI)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The CBI today carried out searches at seven locations, including the office and residential premises of an army officer, in an alleged land fraud worth Rs 500 crore. The case relates to alleged fraud by Lt Col M G Thimmaya, the then Estate Manager, DRDO, and a property developer N H Rustumji in filing a joint memo before the Supreme Court in a land dispute matter.
Thimmaya allegedly gave the memo in the Supreme Court in the land dispute matter which was different from that cleared by the Defence Ministry.
“The allegation is related to criminal conspiracy between the accused during the year 2004-06, pursuant to which the officer abused his official position and cheated the Government through the transfer of 12 acres and one gunta of land in favour of a private person against the decision taken by the Ministry of Defence,” CBI Spokesperson said here today.
The agency today carried out searches at the residential permises and office of Thimmaya, now with Defence Ministry in Hyderabad, and Rustumji in Bengaluru.
The vigilance department of the Defence Ministry had pegged the alleged scam at Rs 500 crore.

 

Drdo

Shut Down Laboratories And Overhaul The DRDO, Expert Committee Tells Defence Ministry

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All non-core research activity of the DRDO must stop.
Sudhi Ranjan Sen Deputy Editor (News)  The Huffington Post 14/03/2017 3:40 PM IST

HINDUSTAN TIMES VIA GETTY IMAGES The Arjun tank stationed on the Parliament House premises for an exhibition in August 2016 in New Delhi, India.

India’s premier defence research organisation, Defence Research and Development Organisation (DRDO), needs a major overhaul, some its research laboratories closed and the organisation needs to concentrate only on development of defence platforms, a high-level committee appointed by the Ministry of Defence has said in its report.

In the last five years, DRDO has been getting between ₹6,000-₹8,000 crore annually for defence research — roughly 6% of the defence budget.

The DRDO was set up in 1958 to achieve self-reliance in manufacturing weapon systems to equip the armed forces. It has over 33,000 personnel, which includes nearly 8,000 scientists, 13,000 technicians, and 52 laboratories. Its area of research is wide and encompasses everything, from juices to nuclear missiles.

Former Defence Minister Manohar Parrikar had constituted the committee led by Lieutenant General DB Shekatkar (Retired) in May 2016 to suggest ways to enhance the combat capabilities of India. The panel submitted its 550-page report to the government recently.

Top sources told HuffPost India the committee has said as many as 11 laboratories of the DRDO need to closed down or amalgamated and its “non-crore” research activities stopped. The committee also said that DRDO needs to work with “clearly defined” objectives to develop “weapon systems and platforms”.
Instead of the DRDO deciding on areas and focus of research, the committee has recommended setting up of a “Technology Commission”, headed by the defence minister, with representatives from the armed forces. The commission should formulate research and development policy and even set specific deadlines for research.

The committee feels that end-users — the three services — must be consulted on areas of research and development of weapon systems. To break the red-tape in the DRDO, the committee has suggested that DRDO scientists be given incentives for successful completion of projects.

Suggesting further reforms, the DB Shekatkar Committee has also said that Ordnance Factory Boards (OFB) — which produce bulk of the ammunition and weapons used by the forces — should consult the armed forces when inducting new technology or material. It has pointed to the fact that OFB, which produce rifles, wasn’t aware of the exact weight of the guns it was producing.

Interestingly, the committee has said that OFB needs to include private companies and has suggested using private-public partnerships to speed up production, ensure better quality and cut down delays.

This isn’t the first time an overhaul of the DRDO has been recommended. Questions have been frequently raised about the delays and cost over-runs in DRDO projects.

In a 2015 report, the Comptroller Auditor General (CAG) had pointed out that audit examination of 14 mission mode projects, carried out by DRDO laboratories, “revealed that all projects failed to achieve their timelines and the probable date of completion (PDC) was extended many a times”.

These mission mode projects include the crucial S-band surveillance system ‘Rohini’ radars, secure video and fax communication between airborne platforms and ground station ‘Meghdoot’ and electronic warfare suit for the modified MIG-29 fighters.

The delays, the CAG pointed out, “were mainly due to inadequate monitoring”.

 

Drdo

Files reveal links between Agusta, Embraer deals

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By Ashish Singh | NEW DELHI | 18 September, 2016 – The Sunday Guardian
ashish-embraer-story-edited-1The DRDO was not on board with the IAF over selection of the Embraer aircraft.
ashish-embraer-story-edited-2The CBI has registered a preliminary enquiry (PE) against unknown Ministry of Defence officials to probe the Embraer aircraft deal scam, in less than 12 hours after this correspondent revealed on NewsX the minutes of four meetings held in December 2006 to finalise the aircraft for the AEW&C project.

This correspondent has revealed that the Defence Research and Development Organisation (DRDO) was not on board with the Indian Air Force under then Air Force chief S.P. Tyagi over the selection of Embraer aircraft.

PE is the very initial measure taken by the CBI to examine any case before lodging a First Information Report (FIR) against suspected persons.

The CBI told this correspondent that “CBI has registered a PE (preliminary enquiry) against unknown officials of the Ministry of Defence (GOI) and others. This on a reference from the said Ministry on allegations related to M/s. Embraer employing an agent to facilitate various contracts. These include the contract for AEW&C project wioth CABS/DRDO for procurement of 3 aircraft”.

This correspondent has accessed the key 10-page documents that form part of the “Embraer files” that are being investigated by the CBI and the Enforcement Directorate. The documents contain the minutes of the four meetings held in December 2006 to finalise the aircraft for the AEW&C project.

In the first of the four meetings, held at Air Headquarter, New Delhi on 5 December 2006, the documents suggest, then Programme Director (AEW&C) Dr S. Christopher (who is currently the DRDO chief) had proposed two alternative options with different configuration and endurance for the aircraft as a platform for this project. He also pointed out that better options will be available with the change of aircraft. But the Air Force under S.P. Tyagi overruled Christopher’s arguments and stated that the DRDO will work with Embraer, the world’s third largest aircraft manufacturer that is now under the scanner of the US and Brazilian authorities for alleged kickbacks.

The Embraer files accessed by this correspondent reveal that four meetings had taken place on 5,6, 8 and 19 December 2006 among the Air Force officers, DRDO officials and the scientific adviser to the then Defence Minister, A.K. Antony.

“Dr. Christopher brought out that better options will be available with change of aircraft. The Chairman (the then Deputy Chief of Air Staff) stated that we need to work with EMB-145 and develop a prototype with the configuration that CABS will formulate and send to IAF for consideration”, stated the minutes that are available with this correspondent.

The minutes further state: “The Programme Director, AEW&C stated that CABS has proposed two options with different configuration and endurance. DCAS asked him to submit a clear proposal of what can be achieved with a 24T aircraft.”

The Defence Ministry is also expected to seek information from Brazil and the US through Indian defence attachés deployed in Indian embassies in the two countries.

According to the Brazilian newspaper Folha de Sao Paulo, Embraer had allegedly engaged a UK-based defence middleman and paid him kickbacks in order to ink the deal with India. Media reports further alleged that Embraer officials had paid commissions to middlemen in order to finalise similar deals in Saudi Arabia. The US Justice Department has been scrutinising Embraer’s deal with India.

The newspaper report claimed that the Brazil based company came under the US scanner after the US Justice Department smelled a rat in 2010 following the former’s contract with the Dominican Republic.

In 2008, a $208 million deal with Embraer was signed by the Defence Research and Development Organization (DRDO) for three ERJ-145 aircraft to build indigenous Airborne Early Warning and Control Systems for the Indian Air Force. The three aircraft were to serve as an air-borne radar system known as airborne early-warning and control systems or AEWCS for the Indian Air Force.

Significantly, the Embraer deal reminds one of the AgustaWestland VVIP helicopter scam due to the many similarities. Both Embraer and Augusta deals were inked when S.P. Tyagi was the Air Force chief and A.K. Antony was the Defence Minister.

Both deals were cleared between 2008 and 2010 despite alternative options being available. In both deals, UK based middlemen and aircraft company officials are allegedly involved.

Drdo

Parrikar protects whistleblower and takes action against his DRDO harassers

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By Pradip R Sagar | Express News Service Published: 30th May 2016
Manohar-Parrikar
NEW DELHI: Defence Minister Manohar Parrikar has been in South Block for just 18 months, but the 61-year-old has taken several strong measures. In a recent order with a far-reaching impact, Parrikar has not only given protection to a whistleblower, but has also ordered action against officials harassing him.

Prakash Singh, a 53-year-old Defence Research and Development Organisation (DRDO) official, was sacked on the grounds that he was a “perpetual troublemaker”. In reality, Singh had blown the lid off alleged financial irregularities and malpractices in recruitment procedures in the country’s premier defence research agency.

As his series of complaints led to unease, he was sent on compulsory retirement in 2012.
ParrikarDespite complaining to then defence minister A K Antony, nothing was done. Last year, Singh apprised Parrikar of the root cause of his harassment and held 22 DRDO officials responsible for his persecution. Parrikar then ordered quashing of charges against Singh and action against the officials.
“The case has been examined in the light of advice of CVC (Central Vigilance Commission) and after detailed deliberations, the competent authority has ordered quashing of the charges framed against Prakash Singh,” says a Ministry of Defence order. “Those who trumped up false charges and committed a number of procedural irregularities with the single-minded objective of harassing Prakash Singh need to be identified and taken to task for their malafide action.”

Singh’s complaints of corruption in the agency and 10 DRDO scientists recruiting their family members in the organisation by flouting all norms is being investigated by the CBI.

Prakash Singh’s complaints to CBI, CVC

Laser Science & Technology Centre (LASTEC) failed to utilise the pressure recovery system (PRS), a hi-tech equipment imported from Russia for Rs 16.58 crore. Singh alleged that the equipment was burnt in a “mysterious” fire, but DRDO said that the project was successful.

Highlighted nepotism in DRDO recruitment by senior scientists who “recruited their family members by flouting rules”. During a CBI probe, two scientists were asked to leave on the same grounds