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CONFIDENTIAL
Tele/ 25244051
/Fax 080 25246936
, (),
/Government Of India,Min. of Def.(Fin.) Defence Accounts
Department
, (. .), /Office Of The
Controller Of Defence Accounts (R&D)
, / C.V.Raman Nagar, Bangalore 560093
0 1/1002/1/ No. IA/1002/MFAI
/Dated: -7-2015
/To,
/SA to RM
(. .)/DG (R&D)
/ South Block
/New Delhi - 110001
: 03/2015
....
Sub:- Quarterly MFAI Report for QE 03/2015.
*******
/ 03/2015
Report on the above subject for QE03/2015 in respect of Labs/Estt coming under
the audit jurisdiction of this office is
forwarded herewith for necessary action.
1/Part 1
/Fr
esh Cases
/Secti
on A
/Secti
on B
2/Part II /O
ld Cases
/Secti
on A
/Secti
/Cash Irregularity
/Stor
es Irregularity
/Total
---
/Cash Irregularity
07
03
______________
03
______
05
on B
/Stor
es Irregularity
/Total
___________
12
_____
-sd( /K.
Ravi Kumar)
(. .)/CDA (R&D)
1.
2.
3.
4.
5.
/Copy to:
...., /CGDA, New Delhi
...(), ,
/DDA(AF), Kendriya Sadan, B'lore
The Director, DEBEL, Bangalore
The Director, LRDE, Bangalore
The Director, CABS, Bangalore
---------
/ For information
ACDA
(.../IA)
Remarks
misappropriation/embezzlement of public
funds with malicious intention is appear to
be a soft stand taken by the administrative
authorities. Similarly, oral advice to AO
(Cash) despite failing to prevent and detect
the irregularity also appears to be a soft
stand and the case has not been taken
seriously/given due importance. Sharing of
login id and password by the officer is to be
treated as a serious offence as it has paved
way for such a serious embezzlement.
5. Non maintenance of Cash book in proper
format
having huge balances,
not
following the ECS procedure, non
conducting of surprise checks are to be
regularized
as serious procedural
irregularity by GoI
Name of
unit/
formation
Particulars of Irregularity
Financial
effect
Rs.
1
1.
2
DEBEL,
Bangalore
Period of When
was
Account irregularity first
Affected noticed in Audit
& to whom it
was reported
5
201415
6
During Local
audit for the
period 10/14
to 3/2015
7
Reply from
the lab is
awaited.
it is
for Rs.
delay
in
holding
of
TPC
due
to
2.
LRDE
Bangalore
201213
During Local
audit for the
period 10/13
03/14
Reply
from labs
is
awaited.
Some
vendor
has
led
to
extra
payment
of
CABS,
Bangalore
Further, it is also
73,92,157/-
201213
During Local
audit for the
period 10/13
03/14
Reply
from labs
is
awaited.
In this
the same for 2 years and not finding the necessity of the same
for 3 years indicates that the item was procured without proper
assessment of necessity.
As per the payment terms mentioned in TPC/NC minutes,
90% payment is to be made on receipt, inspection, installation,
commissioning and acceptance of items at CABS and balance
10% payment to be released after completion of warranty
period. The payment terms, which are a standard condition of
RFP, have been negotiated and changed after TPC & LoI
through Review TPC, dated 20/03/2013 to 70% of the order
value against proof of shipment, 20% of order value after
receipt, installation and commissioning and acceptance of the
item at CABS & balance 10% of the order value after warranty
period or against submission of PBG.
The above amendment in payment terms led to payment of
70%
of
the
purchase
order
value,i.e.,USD
137970
Name of
Unit/Lab/
Formation
GTRE,
Bangalore
Period
or
quarter
of
Reporti
ng with
item
No.
No.1
03/07
Period to
which
items
pertains
(year)
03/2007
Aug 1999
Aug 1999
Feb 2002
Latest position
Remarks
Dt. 12-01-2002
It was observed that the above advances made to the
supplier by GTRE were not cleared even after lapse of 8
years. In reply to this office observation the R&D Estt.
had stated that the matter is sub judice from vendor side
and further communication would follow. It is also not
clear as to whether the Bank Guarantees executed by the
supplier are valid as on date because the R&D labs take
responsibility of obtaining / renewal / encashment etc of
Bank Guarantees at their end as per extant practice.
Besides, the above vendor was supplied with free raw
material (titanium alloy) worth aggregate value of
Rs.7.00 lakhs on indemnity bond. It would be observed
from contracts enclosed that the details of total quantity
of material issued to the vendor have not been indicated
to enable audit to check charging off in respective by bin
card / SSRC during their inspection as per material
estimate arrived at by production planning and control
section at lab level.
3
MTRDC,
ADE,
GTRE,
LRDE,
CEMILAC
,
CABS,
DARE,
DEBEL,
CAIR
Bangalore
& DFRL
Mysore
02
06/07
2004-05
GTRE
Bangalore
01
of
03/2010
2008-09
Reason
for
Customs
duty
exemption
certificate for a
higher value than
the stores procured
is still awaited from
the lab
ADE,
Bangalore
No.1 of
09/2014
Rs.
33.23
(AMC)
and
Rs.
Loss statement
awaited
from the lab.
reply without enclosing
courts of enquiry and
audit report. Hence, this
office
vide
letter
No.IA/1002/MFAI dated
31/03/2015 has advised
the lab to forward courts
of enquiry as well as
audit report from audit
authorities for the loss.
Reply is awaited from the
lab.
DARE,
CABS &
LRDE,
Bangalore
No.2 of 2010
09/2014
replies
received
Reply awaited.
CAIR,
Bangalore
No.1 of 2013
12/2014
Deliverables
%
of
total
amount
MS
1(
30 %
Rs.
27,45,2
Du
e
dat
e
of
co
mp
leti
on
21/
1/1
3
Actual date
of
completion
15/02/13
Mil
e
sto
ne)
MS
-2
MS
-3
peripherals
Soft Ware(SW) Device OS & Linux
source code &
binaries, Apps for
mapping,
VoIP,
speech
processing,
camera
gallery,
music, browser &
their test reports
HW5
Customized
platform
with
peripherals on the
board as modules
or
chipsets
(Prototype)
SW - Device OS &
Linux source code
& binaries, MS-1
apps plus app for
secure
commn
using
FPGA,
Network Commn
Mgmt (NCM) app,
multimedia apps,
C4I framework &
their test reports
HW - 8 Form
factor
devices
(i.e. final product
with
req
size,
configuration,
energy
consumption etc)
based
on
prototype of MS-2
SW - C4I specific
apps
like
GIS,
Navigation,
localization, adv
mapping, sensor
data processing,
video streaming,
messaging,
enhanced
NCM,
unified
communication
25
30 %
Rs.
27,45,2
25
21/
06/
13
ext
en
de
d
by
am
en
dm
ent
to
21/
08/
13
15/01/14
40
%
(10 %
PBG)
Rs.
36,60,3
00
21/
10/
13
Not
completed
ACDA (IA)
Name of
Unit/Lab/
Formation
Period or
quarter of
Reporting
with item
No.
1 ADE,
01 of
(inclusive of 06/07
ADA
Deposit
Works)
MTRDC,
DARE,
GTRE
Bangalore
2 GTRE,
Bangalore
1 OF
6/2013
Period to
which
items
pertains
(yr)
2003-04
2004-05
2005-06
200607
2011-12
Latest position
Remarks
the machine when a Purchase order was placed for the same, GTRE had
stated that the proposed machine would be installed in the newly built
assembly hanger and inspection for the full engines like Lagu Shakti,
Sagar shakti and other engines under development will be carried out.
However, later the lab has stated that installation was delayed due to
delay in completion of building. It is clear that the machine did not work
during the whole warranty period as installation was done just before
lapse of warranty period.
Improper planning and supervision and suppression of facts from TPC,
has led to delay in installation, commissioning of
the equipment
resulted in lapse of warranty period before commissioning and the loss
therein i.e., cost of warranty that would normally be 10% of the cost of
equipment/order value requires to be written off under the orders of MOD
GTRE,
LRDE,
ADE,
Bangalore,
CVRDE,
Avadi
1 of
9/2013
2011-12
4 GTRE
2 OF
9/2013
2010-11
1. All
Labs in
Bangalor
e
2. NPOL,
Kochi.
3.
CVRDE,
Avadi
4. DFRL,
Mysore
same
is
under
Sl
n
o
Unit
/lab
Passenger
vehicle
Auth Held
.
Load
carriers
Aut
Held
h.
1
Tech
vehicle
A
He
ut
ld
h.
0
0
Two
wheeler
A
H
ut
el
h.
d
0
1
Specialist
vehicle
A
Hel
ut
d
h.
0
0
DFRL
DEBE
L
MTR
DC
CABS
ADE
10
29
12
29
LRDE
16
28
16
29
DARE
CEMI
LAC
CAIR
GTRE
12
NPOL
,
Kochi
CVR
DE
Avadi
13
18
30
13
12
11
9
1
0
1
1
1
2
2014-15
During
Local
audit for
the
period
04/13 to
09/13
Though monetary loss cannot be assessed in relation with nonnegotiation and splitting of supply orders, the clear procedural
irregularity is very much established. Further, the lab has not
followed the procedure of forecasting & assessment of the
requirement of manpower before budget estimations.
In this connection, audit is of the view that
a.
AC D A (IA)