Tag Archives: Sanjay Bhandari

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

Pilatus aircraft deal: CBI has fugitive arms dealer Sanjay Bhandari, bureaucrats in its crosshairs

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Yatish Yadav Jun 22, 2019 16:10:17 IST First Post
New Delhi: A few days after the conclusion of Aero India Show at Bengaluru from 6 to 10 February in 2013, a six-page intelligence note landed at the desk of then chairman, Central Board of Direct Taxes (CBDT) detailing unusual activities of certain companies owned by fugitive arms dealer Sanjay Bhandari. The note purportedly provided the first solid evidence against Bhandari, who at that point of time, was allegedly using four firms registered in India to influence a majority of defence contracts.
Bhandari allegedly had a battery of retired defence public sector undertakings officials on his payroll. Firstpost on 9 April reported that two senior officers of Bharat Electronic Limited (BEL) who joined Bhandari’s firm after retirement, were under the scanner of investigating agencies in the basic trainer aircraft deal. The note highlighted crores spent at the Aero India Show by Bhandari’s firm AVAANA and warned about his links into procurement of 75 basic trainer aircraft for which India inked a Rs 2,859 crore deal in May 2012 with Switzerland-based Pilatus Aircrafts.

File image of arms dealer Sanjay Bhandari. CNN-News18

A year later, the Income Tax Department launched a probe and almost three years after the first warning against Bhandari, a preliminary inquiry was launched by the Central Bureau of Investigation (CBI) which culminated in an FIR against the arms dealer, his firms, close aides and the Swiss company.

The CBI tracked down the alleged kickbacks paid to Bhandari’s firms under the garb of consultancy fees. The CBI said after Request for Proposal (RFP) was floated by the Indian Air Force (IAF) in December 2009, Pilatus Aircrafts, Switzerland, dishonestly and fraudulently signed a service provide agreement with Bhandari’s firm Offset India Solutions Private Limited. This pact between the two firms in a bid to obtain the contract for supply of 75 basic trainer aircrafts to the IAF, was in violation of the defence procurement procedure, the agency stated.

“In furtherance of the said criminal conspiracy, Pilatus Aircrafts Limited made payment of 10,00,000 Swiss Franc (in 2010, 1 Swiss Franc was equal to approximately Rs 47) in account No. 52105058250 of M/S Offset India Solution Private Limited with Standard Chartered Bank, New Delhi in two tranches during August & October 2010 and also transferred huge funds, i.e. 49887900 Swiss Franc (Approximately Rs. 350 Crores) during 2011 to 2011 in the bank accounts of Dubai based company namely M/S Offset India Solutions FZC belonging to Sanjay Bhandari to obtain the contract for 75 basic trainer aircrafts. It is revealed that M/S Pilatus Aircrafts Limited dishonestly and fraudulently signed a pre contract integrity pact on 12.11.2010 with Ministry of Defence, deliberately concealing the facts about signing the aforesaid service provider agreement with Sanjay Bhandari,” the CBI said.

The investigating agency claimed Pilatus Aircrafts concealed the first payment of 10,00,000 Swiss Francs made to Offset India Solutions Private Limited and subsequent payments made to Bhandari in Dubai. The agency suspects the money paid to Bhandari was to influence the public servants of IAF and Ministry of Defence associated with the procurement process. After the deal was signed between Pilatus and Ministry of Defence in May 2012, a huge cash amount was moved by Bhandari from one company to another and even in the account of his wife in order to layer the transactions.

CBI said: “Offset India Solutions Private Limited and other Indian companies of Sanjay Bhandari namely OIS Advanced Technology Private Limited , AVAANA Software & Services Private Limited, SB Hospitality & Services Private Limited, Himalayan Helicorp Private Limited, Santech Investment Private Limited, Micromet ATI India Private Limited and Sonia Bhandari wife of Sanjay Bhandari, received Rs 25.5 crore during June 2012-March 2015 in lieu of cash provided by Sanjay Bhandari from various companies of Deepak Aggarwal, namley, Arti Securities & Services Limited, Hare Krishna Garments Private Limited, I-Tech Insurance Brockers Private Limited, Mysore Finlease Limited, Sperryn Gas Products Limited, Jaguar Equity Limited and Tyagi Portfolio Limited.”

In a bid to further channelise the alleged kickbacks in legitimate financial deals, Bhandari acquired five companies from Himanshu Verma, who has also been named in the FIR. These companies are: Greenpower Marketing and Advertising Private Limited, Bhayana Housing Private Limited (now VRG Housing Private Limited), Bhayana Reality Private Limited (now Stercon Private Limited), Beats Events & Advertising Private Limited and Efficacy Interiors Private Limited. Bhandari subsequently deposited Rs 39.36 crore in the accounts of these five companies with the help of Deepak Aggarwal. Of Rs 39.36 crore, Rs. 5.4 crore was transferred to a company called Saran Savdha LLP owned by Bimal Sareen. Sareen, who has been named in the CBI FIR, is also a director in Bhandari’s firm Offset India Solutions Private Limited.

“There is strong suspicion that the aforementioned cash amount was part of the commission amount paid by the Pilatus Aircrafts to Sanjay Bhandari to obtain the contract from IAF, Ministry of Defence for supply of 75 basic trainer aircraft,” the central investigating agency claimed.

Now, returning to the genesis of probe against Bhandari and Pilatus basic trainer aircraft, the six-page note indicated that the arms dealer’s involvement may not be limited to allegedly swinging the basic trainer aircraft deal in favour of the Swiss company, but may also extend to other deals. It said: “Crores have been spent in these three-day sojourn, specifically companies like AVAANA (owned by Sanjay Bhandari) which is engaged in mission critical system systems and software solutions, development and integration. Its portfolio includes UAVs and asset tracking solutions.” The note also named Bhandari’s Offset India Solutions Private Limited, Micromet-ATI and AVAANA, further adding that under the garb of offset contracts, large amount of commission have been paid via fictitious billing.

Bhandari fled the country in December 2016 and Indian law enforcement agencies believe he is hiding in London. His extradition to India may not only unravel possible links with the then establishment, but also other unholy defence deals he might have orchestrated in connivance with bureaucrats at the helm.