Tag Archives: Purchase Management

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

Drdo

Complaint against Dr A K Saxena, Director, DMSRDE, DRDO, Kanpur -II

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To                                                                                                                    26th December 2013
Central Vigilance Commissioner
Central Vigilance Commission
Satarkta Bhawan, A- Block, GPO Complex, INA
New Delhi-110023
 
To,                                                                                                                 
Joint Secretary (Estt.) and Public Grievances & CVO,
Ministry of Defence, Government of India, 97, South Block,
New Delhi -110 105
 
To
Sh Avinash Chander
SA to RM,DG,DRDO
Room No 541, DRDO Bhawan
Rajaji Marg, New Delhi – 110105
 
To                                                                                                                              
The Defence Minister
Room No -104, South Block
New Delhi – 110011

SUBJECT : Complaint against Dr A K Saxena, Director, DMSRDE, DRDO, Kanpur

DRDO has an approved policy for guiding various procurements (Purchase Management –2006 document issued vide Govt. letter No DMM/PP/0000205/M/868/D(R&D) dated 22nd March 2006 amended vide letter No DMM/PP/0000206/M/2386/D(R&D) dated 21st Aug 2006

CORRIGENDUM No: 2 DMM/II/PP/0000207/M/3041/D(R&D) dated 15th Oct 2007

CORRIGENDUM No: 3 DMM/II/PP/0000208/M/3201/D(R&D) dated 16th Sept 2008

CORRIGENDUM No: 4 DMM/II/PP/0000210/P1/92/D(R&D) dated 14th Jan 2011

DRDO Directors never read above procurement documents because each and every case where Director’s pet agent involved means the above purchase rules have no meanings.

  1. Shri Rakesh Kumar Gupta, Scientist ‘C’ Applied Chemistry Division raised a demand No. DMSRDE/13552009 for “Laboratory Microprocessor Based Programmable High Temp.Furnace” on 30th August 2012.
  2. SPC date 13th September 2012
  3. DRDO Hqrs approval 1st October 2012
  4. Tender Date 1st October 2012 (see the efficiency)
  5. TEC on 6th December 2012
  6. TPC on 16th Jan 2013
  7. Supply order place to M/s Omega Furnace Industries Bangalore, “Omega Atmosphere Controlled Muffle Furance ” vide SO No  DMSRDE/13AT0240/552/12-13/CMS-II dated 26 Feb 2011
  8. Supply Order of Rs 16,81,500.00
  9. Stores Received on 27th September 2013 vide RIN No 14LP0149
  10. Now on the Director’s pet agent M/s Manglam Traders come in front and a review TPC was done,  under Chairmanship of  Dr. Sarfaraz Alam, Sc’G’               para two of review TPC                                                                                                     “Now, the firm M/s  Omega Furnace Industries, Bangalore has intimated that billing and supply of stores will be done by their local dealer M/s Manglam Traders, Kanpur, vide letter of even no dated September 24, 2013”                                           Para three of review TPC                                                                                                  “The finance rep told that the stores have been supplied by M/s Manglam Traders, Kanpur. Hence, the payment may be made to M/s Manglam Traders, Kanpur”      Para four of review TPC                                                                                                       “ In view of aforesaid TPC recommends the following
    For-Supply the stores & payment may be made to M/s  Omega Furnace Industries, Bangalore Read-Supply the stores & payment may be made to M/s Manglam Traders, Kanpur
  11. In view of above details, it is clear Violation of Purchase Management 2006 Rule 7.15(a) Constitution of TPC/NC,  it is requested that registered the complaint against Dr A K Saxena, Director, DMSRDE and his blind followers who are mishandling the government funds for their own vested interest. A thorough investigation is needed to explore the relation between Dr A K Saxena, Director, DMSRDE and M/s Manglam Traders, Kanpur. It may be reveal crores of crores rupees scam in DMSRDE and RCI, DRDO.
 
Prabhu Dandriyal                                                                                                                            
21-Sunderwal, Raipur, Dehradun -248008                                                                              
0135-2787750 – 91-9411114879                                                                 
prabhudoon@gmail.com,  www.corruptionindrdo.com
Drdo

CORRUPTION IN PROCUREMENT OF ANTIVIRUS – DMSRDE

3 Comments
 
To                                                                                                            17th December 2013
Central Vigilance Commissioner
Central Vigilance Commission
Satarkta Bhawan, A- Block, GPO Complex, INA
New Delhi-110023

SUBJECT : CORRUPTION IN PROCUREMENT OF ANTIVIRUS

COMPLAINT AGAINST :  Mr. SARVESH KUMAR, SCIENTIST ‘F’ and  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 Antivirus Software in year 2013 when the cases were indented by Mr. Sarvesh Kumar, Scientist ‘F’. The major irregularities and violations of purchase rules are given below.

i.        Method/Mode of Procurement: Method of procurement in all the three cases of Quick Heal Antivirus was Local Board. When there was a consolidated demand of 372 Antivirus and total cost of the case was around Rs. 270000.00 then case should be raised under Limited Tender as per Rule 7.6 of PM 2006. Vide letter No. DMM/II/PP/0000207/M/3041/D(R&D) dated 15th Oct 2007 Corrigendum No. -2 Directors of Establishments are empowered to constitute Local Purchase Committee for purchase up to cost of Rs. 1.0 Lakh on urgent requirements by amending Rule 6(d) of PM 2006. Copy of the letter is enclosed as Annexure-7. The same rule is quoted here for ready reference.

Purchase of goods by purchase committee: Purchase of goods costing above Rs. 15,000/- (Rupees Fifteen Thousand) only and up to Rs. 1,00,000/- (Rupees One lakh) only on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee consisting of three members of an appropriate level as decided by the Director of Lab/Estt. The committee will survey the market to ascertain the reasonableness of rate, quality and specifications and

Identify the appropriate supplier. Before recommending placement of the purchase order, the members of the committee will jointly record a certificate as under. CFA will ensure that splitting of demands is avoided.

ii.        Splitting of consolidated demand of Antivirus in three parts: Dr. Arvind Kumar Saxena split the consolidated the demand in three parts and misused his official position & powers so that case could not go under Limited Tender. In all cases of three local boards supply order was placed to the same vendor. This establishes vested interests of Dr. Saxena and Mr. Sarvesh Kumar using Local Board for purchase of Antivirus instead of Limited Tender. This leads loss to public fund and Corruption of Rs. 37920.00 by Mr. Sarvesh Kumar.

iii.        As per provisions of Purchase Management 2006 Rule 5.1.1(b) –Purchase orders will not be split-up to avoid the necessity for obtaining sanction of the higher authorities. Copy of the rule is enclosed as Annexure-8. Sprit of Purchase Rules and CVC Guidelines is that “The proposals shall not be split merely to bring them within the delegated powers”.

iv.           Local Board did not make market survey to ascertain the reasonableness of rate, quality and specifications and identify the appropriate supplier, rather one vendor M/s P. S. Computronics pre-fixed by Dr. Saxena was allowed to submit three quotations to Sarvesh Kumar and board members were forced to sign the certificates and other purchase related papers. Hence purchase procedure according to Purchase Management 2006 was not followed and grossly violated in this case.

3.           Dr. Arvind Kumar Saxena, Director, DMSRDE, Kanpur and Mr. Sarvesh Kumar, Scientist ‘F’ are posted in DMSRDE, Kanpur. Dr. Arvind Kumar Saxena is Director, DMSRDE with effect from 01 January 2011.

4.           Dr. Arvind Kumar Saxena, Director, DMSRDE dissolved Information Technology Division on 02 Dec 2013 and constituted a new division “Computer Science Division” under headship of Mr. Sarvesh Kumar, Scientist ‘F’.

5.            Procurement and installation of Antivirus in all computers available in DMSRDE was one of the charters of Information Technology Division. Every year this division was purchasing about 300 units of Antivirus Licenses for security of PCs. These Antiviruses are having life time of one year from date of installation.

6.            In the year 2011, a demand was initiated for procurement of Antivirus Licenses with following details. Copy of the demand is enclosed as Annexure-1.table1

7.             300 units of Quick Heal Total Security Antivirus were purchased in the year 2012 on the basis of demand mentioned above. Details of procurement are given below. Copies of Supply Orders issued on 14 Nov 2011 are enclosed as Annexure-2.

table2

8.           Unit price details of Quick Heal Antivirus purchased in year 2012 are given below.table3

9.            During the period his posting at Information Technology Division, DMSRDE, Kanpur from 01.01. 2011 to 02.12.2013, Mr. Sarvesh Kumar, Scientist ‘F’ made following procurements as indenter on orders of Dr. Arvind Kumar Saxena, Director. Copies of the demands initiated by Sarvesh Kumar are enclosed as Annexure-3LIST OF CASES INDENTED AND ITEMS PROCURDED BY MR. SARVESH KUMAR, SCIENTIST ‘F’

table4 Demand status of cases initiated by  Mr. Sarvesh Kumar is enclosed as Annexure-4.

10.            In Information Technology Division, DMSRDE, Kanpur three Scientist Mr. R.P. Bhat, Scientist ‘F’, Mr. Sarvesh Kumar, Scientist ‘F’ and Mr. N.P. Gupta, Scientist ‘C’ were posted from 19 Feb 2012- 02 Dec 2013. Mr. R.P. Bhat, Scientist ‘F’ was Head of Information Technology Division.

11.              IT Division sought Proposal for Antivirus for procurement of Quickheal Total Security Antivirus from M/s Well Known Computers Pvt Ltd, Kanpur in the year 2013 on 14.01.2013. Copy of the proposal dated 14.01.2013 is enclosed as Annexure-5. The details of the proposal Well Known Computers are as under.

table5

12.            In the year 2013, for procurement of Quick Heal Total Security Antivirus (300 Units) a Statement of Case was put-up to Dr. Arvind Kumar Saxena, Director, DMSRDE for procurement of Antivirus under Limited Tender through Head IT Division but Dr. Saxena turned down the case and constituted a Local Board for procurement of Antivirus.  This Local Board was constituted of Mr. Sarvesh Kumar, Scientist ‘E’ (now Scientist ‘F’) Chairman, Mr. Sanjeev Kumar, Scientist ‘D’ and Mr. N.P. Gupta, Scientist ‘C’.

13.             On direction of Dr. Saxena, Mr. Sarvesh Kumar split the demand of Antivirus licenses in three parts and gets financial sanction from Dr. Saxena, Director in three cases under Local Board. Total consolidated demands of 372 Antivirus licenses were split in three parts so that cases remain under financial powers (Rs. 1.0 lakh) of the Director and procurement could be made under Local Board. Details of procurement of Quick Heal Total Security Antiviruses in the year 2013 by Mr. Sarvesh Kumar, Scientist ‘F’ are given below.table6

These Quickheal Antivirus packs were received by Mr. Sarvesh Kumar on 11 Apr 2013 vide Receipt & Inspection Note (RIN) No. 14LP0009 and 14LP0010 dated 11 April 2013. Copies of the receipts are enclosed as Annexure-6.

14.        Unit price details of Quick Heal Antivirus purchased in year 2013 by Mr. Sarvesh Kumar are given below.table7

15.         It is very clear from the observation of the Purchase Proposal of Well Known Computers and procurements made by Mr. Sarvesh Kumar that the rates of Quickheal Antivirus are higher in later case. This lead loss to Government fund due to corrupt practices adopted by Dr. Arvind Kumar Saxena and Mr. Sarvesh Kumar. Comparative details of both cases are given below.

Comparative rates of Well Known Computers (Proposal) and P.S. Computronics (Sarvesh)table8

Loss to public fund on purchase of Antivirus by Sarvesh Kumar on split of consolidated demand by Dr. Arvind Kumar Saxena, Director, DMSRDEtable9

16.      Before placing the order the IT division can see these online offers which are less then quoted price and negotiate for best price from vendors in the interest of organization. Even that the for bulk there paper license offers are available.
17.       Therefore purchases made by Dr. Arvind Kumar Saxena and Mr. Sarvesh Kumar by split of consolidated demand of Antivirus lead loss to public fund by Rs. 37920.00 and in turn make a scope of Corruption.

VIOLATION OF DIRECTOR’S POWER AND CONDUCT RULES

i.     Misuse of power & position for personal gain
ii.    Violation of Rule 3(1) and 3(2)(i) and 3(1)(iii) of CCS(Conducts) Rules 1964                   iii.    Splitting of demands of Antivirus in three parts and Constitution of Local Board instead of Limited Tender for purchase of Antivirus                                                                   iv.   Sanctioning of three cases of purchases each just below Rs. 1.0 Lakh of his financial powers

AS HEAD “Computer Science Division” MR. SARVESH KUMAR, SCIENTIST ‘F’ VIOLATED THE DRDO PROCUREMENT RULES

i.       Did not follow the purchase procedure of Local Purchase Committee. Didnot make any market survey instead collected three quotations by hand from representative of M/s P. S. Computronics, Kanpur and forced to sign on the papers to other two members of the board.
ii.       Gross violation of conduct under Rule 3.(1) of CCS(Conducts) Rules 1964

Therefore, in light of the above mentioned facts and evidences, may kindly investigate the matter. This may be the “tip of iceberg”. Further investigation may reveal violations of procurement for personal gain in the tune of corers of rupees.

The classic example from DMSRDE, Kanpur is the violation of procurement rules for the purchase of   “High Temp. Reaction Overhead System” 28,50,000 &   “50 Ltrs. High Temp. Monel Reactor” 38,50,000. This split case example of where Director’s power is limited up to 50 lakh with a Hqrs rep. because without splited the system cost was Rs 62.5 lakh. The details will be followed.

Similar misadventure was committed several times in the name of technology development by Ex, DG, DRDO Dr V K Saraswat, where financial power was limited up to 50 corers  and CAG in its special audit noticed violation of splitting the procurement cases while CCPA approved for Rs 150 corers.

Regards

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