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 16^th 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.

6. 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 22^nd 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. 17^th 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.

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 02^nd to 31^st Dec2011,
  • These Demand are cleared in 05 SPC meetings  conducted over a period of 45 days from  21^st Dec 2011 to 02^nd Feb 2012
  • CFA approval accorded and Tender Enquiry issued over a period of 45 days from  26^th Dec 2011 to 14^th Feb 2012, and
  • Supply orders prepared over a month period from 17th Apr 2012 to 22^nd 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.

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 31^st Oct 2011  and Sl No 16,17 on 24,25^th Oct 2011
  • These Demand are cleared in one  SPC meeting  conducted on   16^th Nov 2011
  • CFA approval accorded and Tender Enquiry issued over a period of 15 days from  8^th Dec 2011 to 21^st Dec 2011, and
  • Supply orders prepared over six months period from  14^th Jan 2012 to 22^nd 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.

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 from12^th Oct 2011  to  21^st Oct 2011
  • Out of these Demand most are cleared in one SPC meeting conducted on   16^th Nov 2011 and only four demands were cleared in SPC meetings held on 8^th Dec 2011 (01),  06^th Jan 2012 (02 ) and 02^nd Feb 2012 (01).
  • CFA approval accorded and Tender Enquiry issued over a period of 45 days from  29^th Nov 2011 to 14^th Feb 2012, and
  • Supply orders prepared over two and half months periodfrom  18^th May 2012 to 30^th  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.

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: 07^th January 2014

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