Tag Archives: MR. AMIT SARAIYA

Drdo

CORRUPTION IN PROCUREMENT OF ANALYTICAL WEIGHING BALANCE AT DMSRDE KANPUR

3 Comments

           

To
Central Vigilance Commissioner,
Central Vigilance Commission,
Satarkta Bhawan, A- Block, GPO Complex, INA
New Delhi-110023

SUBJECT: SCAM TAINTED PROCUREMENT OF ANALYTICAL WEIGHING BALANCE IN DMSRDE, KANPUR 

 COMPLAINT AGAINST

  1. MR. AMIT SARAIYA, SCIENTIST ‘D’, HEAD MATERIALS MANAGEMENT GROUP (2011-2013),
  2. MR. SHIELANDRA KUMAR  SCIENTIST ‘E’, HEAD MATERIALS MANAGEMENT GROUP (2013),
  3. MR.R K JAIN, SCIENTIST ‘E’ CHAIRMAN, ‘VENDOR REGISTRATION COMMITTEE’
  4. DR. D. N. TRIPATHI, CHAIRMAN, ‘TECHNICAL EVALUATION COMMITTEE’(TEC)
  5. DR. T. C. SHAMI, CHAIRMAN, ‘STORES PRUCHASE COMMITTEE’(SPC)
  6. DR. ARVIND KUMAR SAXENA, DIRECTOR & CFA, DMSRDE, KANPUR

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.
  1. 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 Analytical Weighing Balance in year 2012-2013 when the cases were indented by officers of Material Management Group under illegal orders of Head MMG & Dr. A. K. Saxena, Director, DMSRDE.
  1. Dr. A K Saxena Director is an incompetent, arrogant and corrupt administrator who has not only violated but also subverted all 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 not only the ‘CENTRE OF GRAVITY’ but also ‘PATRON-IN-CHIEF’ of corruption menace in DMSRDE.  Relevant rules and regulation of DRDO PURCHASE MANUAL-2006 for the execution of procurement are a mentioned below:
  • Para 4.6.2 of DRDO purchase manual 2006 Corrigendum 03 clearly  states: 4.6.2 For demands for stores above Rs 5 lakh, the level for initiation for putting up to SPC/DRDO HQrs/ various committees with delegated powers under various programmes and projects will be as under: (a) Above Rs 5 lakh to Rs 25 lakh: initiation by Scientist ‘C’/ TO ‘C’ and above, countersigned by project or group head. (b) Above Rs 25 lakh to Rs 50 lakh: initiation by Scientist ‘D’/ TO ‘D’ and above, countersigned by project or group head. (c) Above Rs 100 lakh and above: initiation by Scientist ‘E’ and above, countersigned by project or group head.
  • 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.
  • Para  7.6 Corrigendum 02 of DRDO PURCHASE MANUAL 2006 clearly states: LIMITED TENDERS: This mode of tendering may be chosen when estimated value of goods to be procured is up to Rs. 25 lakh (Rupees Twenty five lakh).  Purchase through Limited Tender Enquiry may also be adopted even where the estimated value of the procurement is more than Rs 25 lakh, in the following circumstances as per the delegated financial powers in vogue.

(a)  When the sources of supply are definitely known and are limited.

(b)  When it is not in the public interest to call for open tenders due to reasons of security or when superior authorities have issued specific instructions in this regard.

(c)  When Government policies designate specific agencies.

(d)  When open tender system adopted during previous one year has established sufficient and assured sources of supply at competitive rates.

(e)  When the requirement of stores is urgent and the desired delivery schedule cannot be met if open tenders are invited, the indenting officer must place on record, the nature of the urgency and why the demand could not be anticipated earlier. Urgency of such cases will be specifically monitored till the placement of order.

(f)   EPC approval issued by DMM in all cases shall include the names of the vendors to whom the Tender enquiries must necessarily be sent in addition to others.

  • Para 7.6.3 of DRDO purchase manual 2006 clearly  states: “The limited tender enquiries will be floated to all registered firms with a minimum of seven such firms for the concerned item(s). In a case where the number of registered firms is less than seven, these enquiries will be issued to all known firms dealing with the stores and efforts made in this regard will be recorded on the file”. Corrigendum 03 clearly  states: “Add: at the end of the para 7.6.3:  Vendor selection for the purpose of Limited Tender enquiries must be done with utmost diligence so as to give fair opportunity to all known vendors who are willing and eligible for consideration. The enlistment and delisting of registered vendors should be based on clearly laid down criteria and the existing provision for buildup followed rigorously  by periodically referring to vendors registered with R&D Labs/ Estt., DGS&D, NSIC, other Government  Departments and to the firms of national repute who will be registered before their bid is considered.”
  • Para 7.13.3 of DRDO purchase manual 2006 clearly  states: Scrapping of tenders will be resorted to in the following cases with the approval of the Director:
    • Change in basic specifications governing supplies after opening of tenders.
    • Non-receipt of offers as per specifications laid down.
    • Sudden downward market trend.
    • Prices quoted being very high/unreasonable.
    • Large/manifold variation in tendered prices.
    • Para 3.2 of DRDO purchase manual 2006 clearly  states: REGISTRATION OF VENDORS: The vendors will be registered by Labs/Estts for different categories of stores, e.g., raw materials, chemicals, machine tools, instruments, electronics and electrical items, timber, fabrication jobs and other general stores etc. The credentials of firms seeking registration will be verified to ascertain their credibility with regard to financial standing i.e. annual accounts, capacity, reliability, bonafides (income-tax returns sales tax No. etc.) and past performance, etc. For this purpose, specialists from the respective fields will be included in the Vendor Registration Committee while examining the applications of vendors seeking registration. The registration committee will be appointed for one financial year. The constitution of the vendor registration committee will be as follows:

1. Scientist- F Chairman

2. Scientist- D/E Member

3. Head MMG or Rep Member Secy.

The Chairman can co-opt specialist members if considered necessary.

4.    Mr. Aneesh  Kumar Singh, Scientist ‘C’,  Mr. Amit Sarriya,  Head Material Management Group, Mr. R.K. Jain, Scientist ‘E’ Chairman Vendor Registration Committee Dr. D. N. Tripathi, Scientist ‘F’ Chairman TEC, and Dr. T. C. Shami, Scientist ‘F’, Chairman SPC(above Rs 10 lakh) for    possibly under heavy pressure entered into a criminal conspiracy with Dr. A K Saxena, Director  & CFA of splitting requirement of the same items to fabricate store demands violating  DRDO purchase manual 2006, details of which are mentioned below:

5.    PROCUREMENT IRREGULARITIES OF Analytical Weighing Balance

Central Procurement of Analytical Weighing Balances worth total estimated cost Rs. 52.8 lakh on limited tender basis by splitting requirement into

  • 02 demands raised by Mr. Aneesh Kumar Singh, Scientist C of Material Management Group along with Mr. Amit Sarriya Head MMG, on same date 20th Feb 2013 with exactly same list of pet vendors of Dr. A. K. Saxena, Director , DMSRDE.
  • the 02 demands were cleared by the SPC (Store Procurement Committee) dealing cases above Rs. 10.0 lakh, headed by  Dr.  T C Shami, Scientist ‘F’,  as Chairman of SPC 2012,
  • Technical evaluation of Techno Commercial Bid  in case of Analytical Weighing Balance was done by a TEC comprising of  Dr. D. N. Tripathi, Scientist ‘F’ Chairman TEC, Mr. A. K. Dixit Scientist ‘E’ (Expert Member),  Mr. Aneesh Kumar Singh, Scientist C(User Member) and Mr. A. K. Mishra Technical Officer ‘C’(Member Secretary). Queries were asked from Vendors vide letter dated 19 June 2013 Kawach Instruments & Chem Tex Noida & Abhigyan Traders, Kanpur was  technically disqualified in TEC report for case at Sl. No.01.
  • Respective   supply orders placed during Sep 2013 to Oct 2013.
  • Point to be noted that
    • requirement of “Analytical Weighing Balance” received from various user divisions in response to MMG ION (Annexure-I) was  deliberately split into two demands below Rs. 50.0 Lakh to keep it within the lab director CFA power so as to avoid DRDO HQrs  concurrence. These demands were cleared in same SPC meeting held on 07-Mar-2013 and limited tender enquiries were issued on same date 03-Apr-2013 to exactly similar vendors as shown in Table-I below.
    • Only 06 pet vendors are given tender enquiry whereas  as per para 7.6.3 DRDO purchase manual 2006 the limited tender enquiries will be floated to all registered firms with a minimum of seven such firms for the concerned item(s). Further vendors should be selected in accordance to Para 7.6.3-Corrigendum 03 to DRDO purchase manual 2006.
    • Further vendors selection  for the two demands  at Sl.No.01& 02 is improper as:
      • M/s Nav Jyoti Scientific Sales Corporation Lucknow (Reg. No. DMSRDE_013/01C/19_10L for Chemicals, Instruments) and M/s Kawach Instruments & Chem Tex Noida (Reg. No. DMSRDE_012/03C/073_10L for Chemicals, Instruments, Textiles,) were registered in 2013  for supply orders limited up to Rs 10.lakh then how these vendors were selected for tender inquiry for cases costing above  Rs. 10 Lakh
      • M/s Abhigyan Traders, Kanpur (Reg. No. DMSRDE_07/03C/044 for Chemicals) and M/s National Industrial Corporation (NIC) Kanpur (Reg. No. DMSRDE_11/03C/61 for Chemicals) are registered in DMSRDE only for Chemicals supply then how they were selected for tender inquiry for Scientific Equipment.
      • Demand for such specialized equipment is raised by Material Management Group centrally based on requirements submitted  by user divisions under pressure of Dr. A K Saxena, the Director,  in response to the ION issued by Material Management Group(Annexure-I)  despite no demand was raised from user divisions.
      • there is no requirement for this store in such a huge quantity in DMSRDE as it may be  sufficient to provided such costly and specialized equipment in Central Analytical Facility which is equipped with various special purpose sophisticated costly equipment. This is an attempt to create redundant facilities leading to underutilization of the equipment and this can be treated as wastage of poor tax payers money.

 6.    Point to be noted that

Dr. A. K. Saxena, the Director, has got registered more than fifty of his pet vendors in year 2013 through formulation of an illegal Vendor Registration committee with his pet man Mr. R.K. Jain Scientist ‘E’ as Chairman despite the fact that there are more competent and honest Scientist’s ‘F’ available in DMSRDE who are not only underutilized but not even acknowledged.. This  is a clear cut violation of para3.2 of DRDO purchase manual 2006 by Dr AK Saxena, for placement of the supply  order on limited tender to known vendors clearly exhibit his 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.

  • Details are as show in Table-1

  • Table-Itable2

Point to be noted

  • For Analytical weighing balance at Sl.no.01
    • As per Para 4.6.2 DRDO purchase manual 2006 Corrigendum 03 Scientist ‘C’ can raise demand up to Rs.  25.0 lakh.
    • This limited tender above Rs 25 lakh violates Para 7.6 DRDO purchase manual 2006 Corrigendum 02.
    • Placement of supply order worth Rs. 30.92 (costing  close to  estimated cost Rs 33.6 lakh) on limited tender basis  to known local/pet vendor M/s Nav Jyoti Scientific Sales Corporation Lucknow, 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
  • For Analytical weighing balance at Sl.no.02
    • The Demand for Dual Range High Precision Semi Micro Balance with Density Determination Kit is exorbitantly estimated at the rate of Rs 6.4 Lakh (i.e. Total cost for 03 No. Rs 19.2 Lakh ) as:
  • Similar Semi Micro Dual Range High Precision Analytical Balance with Density Determination Kit was procured by a user division vide demand dated in 08-Aug-11 and supply order dated 19-Dec-2011 at the rate of Rs 1.6 lakh from M/s P.D. Scientific Industries, Kanpur.
  • For a demand estimated Rs.19.2 lakh the supply order costing Rs 9.7 lakh at the rate Rs 3.3 lakh only was placed to lowest bidder M/s Kawach Instruments & Chem Tex Noida.
  • Point to be noted that M/s Kawach Instruments & Chem Tex Noida could not be technically disqualified in this case by the TEC otherwise this supply order also might be costing close to estimated cost Rs 19 lakh as in first case above.  It appears that the first case is exorbitantly estimated too.
    • Item nomenclature is slight changed by changing the location of “Semi Micro” at Sl. No. 02 & 03 with a view to create a differentiation.  
    • M/s P.D. Scientific Industries Kanpur was not considered for the said tender enquiry otherwise prices might have lowered further in order of case at Sl. No. 03.
    • Scrapping of tenders should be considered in case of sudden downward market trend or Large/manifold variation in tendered prices as per DRDO purchase manual 2006 Para 7.13.3 .

9.      Despite all above placement of the supply  order on limited tender to known 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

10.       From the facts stated above, it is amply crystal clear that prima facie material regarding ‘ABUSE OF AUTHORITY’, ‘DICTATORIAL TRAITS ’, ‘PATRONIZATION OF CORRUPTION’ as regards to arrogant and corrupt Dr. Arvind Kumar  Saxena, Director DMSRDE exists.

That he has created a robust cobweb of corruption system’ killed proven departments / institutions in DMSRDE to hold system to ransom. This is evident from the fact that sequentially right from the indenter, head of the Division, whole Stores Purchase Committee including its CHAIRMAN and lastly HEAD MMG have fallen under tremendous pressure into criminal conspiracy 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.

11.      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.  A. K. Saxena after assuming charge as Director, DMSRDE, DRDO, Kanpur to stop further corruption and wastage of poor tax payers money.

Date: 12th January 2014

Prabhu Dandriyal                                                                                                                          
21-Sunderwal, Raipur, Dehradun -248008                                                                              
0135-2787750 – 91-9411114879                                                                 
prabhudoon@gmail.com , www.corruptionindrdo.com

Annexure- ION Bulk Purchasing of Items – File No TPO/Gen/09/N-8Dated 7/9/2012  table3

 

Drdo

CORRUPTION IN PROCUREMENT OF DYNEEMA FABRIC AT DMSRDE KANPUR

3 Comments
To                                                                                                          
Central Vigilance Commissioner,
Central Vigilance Commission,
Satarkta Bhawan, A- Block, GPO Complex, INA
New Delhi-110023

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.
  1. 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:
  2. 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-1ak10

  • 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 15th 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 28th Sep 2011 and their tender enquiry was issued on same date 03rd 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  11th 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: 09th January 2014

Prabhu Dandriyal                                                                                                                             
21-Sunderwala, Raipur, Dehradun -248008                                                                              
0135-2787750 – 91-9411114879                                                                 

prabhudoon@gmail.com,   www.corruptionindrdo.com

 

Drdo

CORRUPTION IN PROCUREMENT OF CHEMICALS AT DMSRDE KANPUR

6 Comments
To                                                                                                          
Central Vigilance Commissioner,
Central Vigilance Commission,
SatarktaBhawan, A- Block, GPO Complex, INA
New Delhi-110023

SUBJECT:      MULTI-CRORE SCAM CORRUPTION IN PROCUREMENT OF CHEMICALS IN DMSRDE KANPUR COMPLAINT AGAINST

  1. MR. AMIT SARAIYA, SCIENTIST ‘D’, HEAD MATERIALS MANAGEMENT GROUP (MMG),
  2. DR. DARSHAN LAL, CHAIRMAN ‘STORES PRUCHASE COMMITTEE’  
  3. Dr. ARVIND KUMAR SAXENA, DIRECTOR, DMSRDE, KANPUR

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 Chemicals in year 2012 when the cases were indented by officers of MMG under threat illegal orders of Head ‘Materials Management Group’ (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 the year 2012 while chairing ‘Head of Divisions’ (HOD) meeting, he directed that all HOD’s shall ensure that all demands of chemicals what-so-ever should be immediately forwarded to Head MMG. Head MMG shall consolidate all the requirements and one order shall be placed to get maximum discount from the suppliers
  4. Accordingly Head MMG circulated a memo requesting for the details of chemicals as per the enclosed format. Now here is where criminal conspiracy starts and instead of placing one consolidated demand, Head MMG & Dr. A K Saxena, Director  & CFA split the orders of various chemicals to the tune of Rs. 2.2 Crores.
  5. Procurement of CHEMICALS

Chemicals worth total estimated cost of Rs.2,19,19,074/-were procured centrally by a single division i.e. Material Management Group on limited tender basis splitting total demand against requirements received from various divisions of lab

  • into 30 cases below Rs.10 lakh(to avoid TPC) during 10 months period(from 12 Oct 2011 to 31 July 2012)
  • these demands were cleared by the same SPC (Store Procurement Committee)  Chairman Darshan Lal Joint Director, and
  • issuing more than 40 supply orders during Apr 2012 to  Dec 2012
  • Point to be noted that only in Month of Oct 2011   22 Demands worth total estimated cost of Rs. 15333034.00 were raised out of which 16 Demands worth total estimated cost of Rs 11471067.00 were cleared in one SPC meeting held on 16th Nov 2011 by SPC (Store Procurement Committee) dealing cases costing less than Rs 10 lakh headedby Chairman Darshan Lal Joint Director. Further it has bypassed the expert higher level SPC (Store Procurement Committee) dealing cases costing more than Rs 10 lakh headed by an honest officer Chairman Dr. DK Setua, Addl. Director having expertise with chemical background who might have not permitted splitting of cases in this manner.
  1. These 30 No. Cases for which at least details up to supply order date(which confirms that supply order is prepared) are mentioned in following tables

Table-1

  • For Sl. 01-03 total estimated cost  is Rs. 2832300.00 and total value of 08 Supply orders is Rs. 2635059.00
  • Point to be noted that
    • These Demand are raised on Limited Tender basis by same indenter officer, on same date 31-Jul-12 ,
    • SPC conducted on 22nd Aug 2012,
    • CFA approval accorded on 05-Sep-12, Tender Enquiry issued on the same date 05-Sep-12, and
    • 08 No Supply orders worth Rs. 2635059.00 are placed on same date 4-Dec-2012.
    • Demands of chemicals vide DMSRDE/13MMG042 & DMSRDE/13MMG041 at Sl.No. 01 and 02 reflect same chemical “Ethylene Di Chloride AR Make: Rankem/SD fine /Qualigens /SRL Each Pack of 2.5 ltr”
    • The requirement of chemicals was split into demands below Rs. 10.0 Lakh to avoid TPC and open tender.
    • DRDO Chemical Rate Contract exists w.e.f. 17th Sep 2012 and placement of these supply orders under the RC would have fetched better quality at discounted prices.
    • Placement of these orders on limited tender to known local vendors ignoring DRDO Chemical RC  clearly exhibit vested interest through manipulation  in prices, quality, pack size etc so as to fetch financial benefits hence indicates financial corruption/ corrupt practices of giving business/ benefits to own firms.chem table1

Table-2

  • For Sl. 04-08 total estimated cost  is Rs. 3422198.00
    • These Demand are raised on Limited Tender basis in December 2011 from 02nd to 31st Dec2011,
    • These Demand are cleared in 05 SPC meetings  conducted over a period of 45 days from  21st Dec 2011 to 02nd Feb 2012
    • CFA approval accorded and Tender Enquiry issued over a period of 45 days from  26th Dec 2011 to 14th Feb 2012, and
    • Supply orders prepared over a month period from 17th Apr 2012 to 22nd May 2012.
  • Point to be noted that
  • The requirement of chemicals was split into demands below Rs. 10.0 Lakh to avoid TPC and open tender which would have fetched better quality at discounted prices. Further it has bypassed the expert higher level SPC (Store Procurement Committee) dealing cases costing more than Rs 10 lakh.

Placement of these orders on limited tender to known local vendors clearly exhibit vested interest through manipulation  in prices, quality, pack size etc so as to fetch financial benefits hence indicates financial corruption/ corrupt practices of giving business/ benefits to own firms.chem table2

Table-3

  • For Sl. 09-17 total estimated cost  is Rs. 6272502.00
    • From Sl No.09-15 Demand worth total estimated cost   Rs. 51.00 lakh are raised on Limited Tender basis on 31st Oct 2011  and Sl No 16,17 on 24,25th Oct 2011
    • These Demand are cleared in one  SPC meeting  conducted on   16th Nov 2011
    • CFA approval accorded and Tender Enquiry issued over a period of 15 days from  8th Dec 2011 to 21st Dec 2011, and
    • Supply orders prepared over six months period from  14th Jan 2012 to 22nd Jun 2012 (i.e. there appears no urgency).
  • Point to be noted that
  • The requirement of chemicals was split into demands below Rs. 10.0 Lakh to avoid TPC and open tender which would have fetched better quality at discounted prices. Further it has bypassed the expert higher level SPC (Store Procurement Committee) dealing cases costing more than Rs. 10 lakh headed by an honest officer Chairman Dr. DK Setua. Addl. Director having expertise with chemical background who might have not permitted splitting of cases in this manner.
  • Placement of these orders on limited tender to known local vendors clearly exhibit vested interest through manipulation  in prices, quality, pack size etc so as to fetch financial benefits hence indicates financial corruption/ corrupt practices of giving business/ benefits to own firms.chem table3

Table-4

  • For Sl. 18-30 total estimated cost  is Rs. 9060532.00
    • From Sl No.09-15 Demand are raised on Limited Tender basis over a period of 10 days from12th Oct 2011  to  21st Oct 2011
    • Out of these Demand most are cleared in one SPC meeting conducted on   16th Nov 2011 and only four demands were cleared in SPC meetings held on 8th Dec 2011 (01),  06th Jan 2012 (02 ) and 02nd Feb 2012 (01).
    • CFA approval accorded and Tender Enquiry issued over a period of 45 days from  29th Nov 2011 to 14th Feb 2012, and
    • Supply orders prepared over two and half months periodfrom  18th May 2012 to 30th  July2012.
  • Point to be noted that
    • The requirement of chemicals was split into demands below Rs. 10.0 Lakh to avoid TPC and open tender which would have fetched better quality at discounted prices. Further it has bypassed the expert higher level SPC (Store Procurement Committee) dealing cases costing more than Rs 10 lakh headed by an honest officer Chairman Dr. DK Setua, Addl. Director having expertise with chemical background who might have not permitted splitting of cases in this manner.
    • Placement of these orders on limited tender to known local vendors clearly exhibit vested interest through manipulation  in prices, quality, pack size etc so as to fetch financial benefits hence indicates financial corruption/ corrupt practices of giving business/ benefits to own firms.chem table4

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 entered into criminal conspiracy with Mr. Darshan Lal, Joint Director, Chairman SPC and Head MMG with an intention to cheat DRDO and exchequer’s money.
    • In pursuance of the said criminal conspiracy,  Dr. A K Saxena, Director 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.

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 A K Saxena after assuming charge as Director, DMSRDE, DRDO, Kanpur to stop further corruption and wastage of poor tax payers money.

 

Date: 07th January 2014

 

Prabhu Dandriyal                                                                                                                             
21-Sunderwal, Raipur, Dehradun -248008                                                                              
0135-2787750 – 91-9411114879                                                                 
prabhudoon@gmail.com,  www.corruptionindrdo.com

 

Annexure -1 – ION DATED 12.12.2012 ISSUED BY MR. AMIT SARAIYA, HEAD MMG chem ion