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Indian Army News

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Army guns obsolete,Navy deals flawed

New Delhi: The comptroller and auditor generals report on defence preparedness in December 2011 not only painted an overall grim picture,it went on to give regiment-wise and weapon-wise details of how the Army lacks the firepower that,by governments admission,it must have.
Stressing that the country has not acquired heavy artillery after the controversial purchase of Bofors 155mm howitzers in 1986,the auditor says: Self-propelled guns are required to provide continuous fire support to mechanized formations,which normally operate cross-country in plains and deserts The Indian Army is presently holding SP guns with technology of 1970s.
Acquisition of quantity X of 155mm 52 calibre towed guns and self-propelled guns (wheeled/tracked) was included in the 10th Army Plan (2002-07 ) but could not materialize as of October 2010... This was to be replaced by the Army for its existing force level of 105mm/122mm/130mm guns of obsolete technology.
Another CAG report on the Indian Navy was tabled in Parliament in the monsoon session last year,and once again ignored by the public accounts committee.

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Army chief lashes out at absolutely stupid news report

People Trying To Throw Muck At The Govt

Rajat Pandit TNN

New Delhi: Army chief General V K Singh on Thursday dismissed as absolutely stupid a newspaper report that the unusual movement of a mechanized infantry unit and elements of a para brigade towards Delhi in mid-January had spooked the government.
Gen Singh said some people were unnecessarily trying to throw muck at both the government and the Army.Such people should be taken to task, he said during his ongoing three-day visit to Kathmandu.
The report on Tuesday had said that the government got unnerved over the movement of Army units as it interpreted them as a show of solidarity for the Army chief,who at that time was engaged in a legal battle for the revision of his date of birth.
In a dramatic twist,extracts of General Singhs interview to a weekly on March 13 established that he was apprehensive of an effort to portray routine exercises by Army units as unusually sinister.So,you tell him (a journalist) something juicy,it comes on front page and nobody even checks whether there is any truth in it.It is already done.So,you have already thrown muck on somebody.There are lots of people who are doing that and I dont know what their motives are, he told the weekly,in what his supporters termed as an alert against machinations.

Ramdev to invite Army chief for fast

C laiming that their association went back a long way,Baba Ramdev is planning to invite Army chief Gen V K Singh to participate in the June 6 fast at Jantar Mantar in Delhi to protest against black money.P 12

There are lot of
people who want to
make stories these days for various nefarious aims,if I can put it that way.Nobody even checks whether there is any truth in it.Such people should be taken to task

Gen V K Singh ARMY CHIEF

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Many want to cook up stories,say Gen Singh

New Delhi: Army chief General V K Singh on Thursday dismissed as absolutely stupid a newspaper report that the unusual movement of a mechanized infantry unit and elements of a para brigade towards Delhi in mid-January had spooked the government.He had added,Even,let us say one of our forces or divisions or brigades does an exercise,somebody will say,oh! they did exercise.It was not an exercise;they wanted to do something else There are lots of people who want to make stories these days for various nefarious aims if I can put it that way.
The Army chiefs tough response in Kathmandu to the controversy comes a day after both Prime Minister Manmohan Singh and defence minister A K Antony dismissed the report by dubbing it alarmist and absolutely baseless.Antony had emphasized the Army had already explained the troop movement concerned was part of its usual exercises.We endorse it.We are absolutely confident of the patriotism of our armed forces, he said.
Many in the government and the Army feel that the representation of what was a routine exercise designed to test the ability of the force to move through fog was aimed to tarnish Gen Singhs reputation and also drive a wedge between him and the establishment.
As it happened,the spectre of insubordination by Gen Singhs supporters was raised on the same day he moved the Supreme Court to challenge governments rejection of his claim for revision of his date of birth as shown in official records.
The dirty trick is being blamed on a clique of officials,who have been at the receiving end of some tough measures taken by Gen Singh,and those who would have been inconvenienced if government had allowed him to be in the saddle until March,2013.
There also seems to be closing of ranks against the insinuation that the supporters of the Army wanted to stage a show of strength,with the principal opposition joining Congress,the government and the Army chief to frown on those seeking to cast aspersions on the Army.Many in the government noted that Gen Singh emphasized on Thursday that those gunning for him were also pitted against the government.

Army chief V K Singh (left) and his Nepalese counterpart Chhatra Man Singh Gurung,during a seminar being conducted by the Nepalese army on Disaster Response and Humanitarian Assistance Operations in Kathmandu on Thursday

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Indo-US naval exercise to begin tomorrow

TIMES NEWS NETWORK

Chennai: The city is all set to witness the 2012 edition of the annual Indo-US Naval Exercise Malabar.
The 10-day exercise to be held in the Bay of Bengal will begin from Saturday and feature the frontline units of India and the United States.
The harbour phase of the exercise,scheduled for April 7-9,is being held in the city where both navies will participate in seminars on professional techniques.
The sea phase will be held in the Bay of Bengal with a wide variety of exercises ranging from conventional war fight mission to asymmetric warfare,interact and attempt each other to exploit characteristic weaknesses.
The exercise will also include boarding operations,air defence exercises,helicopter cross-deck operations and co-ordinated anti-submarine warfare.
Malabar 2012 will be the sixteen in the series of structured bilateral exercise since 1992.
The US Navy will be represented by three US war ships and a submarine.The Indian Navy will be represented by the indigenously built Guided Missile Frigate INS Satpur,Guided Missile Destroyers INS Ranvijay and INS Ranvir Missile Corvette,INS Kulish and Fleet Tanker INS Shakti.
In addition Maritime Patrol Aircraft TU142M and other Rotary Wing Aircraft are also scheduled to participate in the bilateral exercise.

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Parliamentary committee may quiz MoD on alarmist report

TIMES NEWS NETWORK

New Delhi: The defence ministry is likely to provide a detailed response to the parliamentary committee on defence on the report about alleged unauthorized troop movement during its next meeting on Monday,April 9.Top army officers will also brief the panel on issues relating to defence preparedness.
Both the MoD and the army brass can expect searching questions with members like Congress MP Manish Tewari having pointed out that the presentation on defence needs made to the panel on Wednesday did not reflect the concerns set out in the leaked letter army chief V K Singh had written to the Prime Minister.
The serious gaps pointed out by the incumbernt army chief include 97% obsolescence in air defence and problems with ammunition,night-fighting capabilities and crew-based systems.These have implications for Indias preparedness for a twofront threat.Although such a scenario may be remote,it cannot be ignored or discounted in defence planning.
The careful manner in which Wednesdays presentation skirted issues flagged by Gen Singh made some MPs wonder whether the caution was a fallout of the leak and the subsequent controversy.With a new Army chief due to take charge and the governments relations with Gen Singh hardly in the best of health,the presentation seemed to chooise to tread a safe path.
While vice-chief Lt Gen S K Singh and defence secretary Shashikant Sharma can expect to be closely questioned over Indias preparedness for a twofront scenario,sources said the ministry top brass has committed to come with a detailed response to the Indian Express report.
After Sharma had to field questions from agitated members,committee chairman Satpal Maharaj ended the discussion with the assurance that the MoD would provide a detailed response.When Sharma and Lt Gen Singh told the meeting that the report was loose talk and lacked basis,MPs wanted to know what action the government would take against the newspaper for creating panic.Sharma said he would have to examine the issue,and consult others in government.
At the meeting,both the defence secretary and the Army Vice-chief made it clear that the movement of a mechanized unit and a paratroop detachment did not require any prior notification and the exercise could be ordered by a corps commander.
Sources said the standing committee could also look at summoning the Army chief for a closed door interaction to understand his concerns regarding problems in the state of preparedness of the Army.
The move is linked to the leaked letter of Gen Singh to the Prime Minister.
Though no final decision has yet been taken,some members are believed to be contemplating a demand for interaction with Gen Singh.

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Tatra deal: CBI quizzes Rishi again

New Delhi: The CBI on Thursday questioned UK businessman Ravi Rishi for the sixth time in connection with the Tatra deal.Sources in the agency said he would be called again and questioned about defence ministry officials who had a role to play in the Tatra deal,the contract process and whether the entire scheme was his brainchild.
The CBI investigation is expected to take time as voluminous documents collected from the defence ministry in connection with the Tatra deal are being studied.
In 1997,Tatra Sipox UK had signed a truck supply deal with BEML allegedly in violation of defence procurement rules which say that procurement should be done directly from original equipment manufacturers.The first agreement for supply of all terrain trucks used for transport of soldiers,heavy machinery,missile systems etc was signed with Czechoslovakia-based company Tatra in 1986.In 1997,BEML started procuring trucks through Tatra Sipox UK,claimed to be the marketing arm of Tatra,in which Ravinder Rishi had a substantial stake.CBI has alleged that since Tatra Sipox UK was not the original manufacturer of these all terrain trucks,the rule that defence procurement should be made from original manufacturer was violated.TNN

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Antony in crosshairs for taking on arms lobby

Rows May Be Used To Oust Def Minister

Rajat Pandit & Josy Joseph TNN

New Delhi: A spate of controversies about the Army may have been a result of the vicious factional feud within the force,but there are indications that the controversies are also being used as fodder to target defence minister A K Antony.
Allegations of insubordination against Army chief Gen V K Singh,ranging from deployment of offthe-air interceptors to unauthorized troop movements to the capital,may have emanated from internal rivalries in the Army,but many now suspect that these are now being used to make a case against Antony for his inaction and his inability to handle the delicate equation between the political leadership and the Army.
The reasons for the suspicions are twofold.First,with the Army chief set to retire on May 31,the principal worry of his rivals has ceased to exist.Second,because of his uncompromising anti-corruption stand Antony has antagonized a whole range of interests arms lobbies,middlemen,foreign governments and armament firms.Rarely has a defence minister attracted this sort of hostility.
Just last month,Antony often accused of inaction by his detractors did something few defence ministers have dared to do: he banned six top armaments companies for a period of 10 years.

MARKED ANTONY

Antony has antagonized arms lobbies,middlemen,foreign govts and armament firms Just last month,he banned 6 top armament companies,including 4 foreign firms,for 10 years Some warned that this could invite a severe backlash.But he persisted,saying defence procurement must be taint-free He has also warned arms firms that he wont hesitate to cancel deals if any allegations are proven

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Under Antony,no room for middlemen

Defence minister A K Antony banned six top armaments companies for a period of 10 years.Its said that some warned him against this radical step,saying the backlash could be severe.But the defence minister factored in the warning,kept the top political leadership informed about every step taken by him,and went ahead and blacklisted the companies in his deep belief that defence procurement by worlds largest arms importer should be completely free of any taint.
The companies include four foreign ones Israeli Military Industries (IMI),Singapore Technologies Kinetics,Rheinmetall Air Defence (Zurich) and Corporation Defence (Russia).
His quest for corruptionfree defence purchases has been attacked as impractical and he has been blamed for delaying the modernization of the armed forces.But while this has argument has virtually been turned into conventional wisdom,facts prove that armed forces have fared much better under Antony in using up budgetary allocations.
While all this should please the soldier,Antonys tough regime has distressed those who flourished under the previous dispensations.Antony is probably the first defence minister who does not meet representatives of private armaments companies.In a ministry where even arranging meetings can reap millions of dollars,Antony has dried up the business of several middlemen and strategists.

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Revealed: The real story behind CBI's Tatra probe -- TVR Shenoy

Revealed: The real story behind CBI's Tatra probe

April 04, 2012 15:26 IST

'A K Antony's office receives something like ten letters a week, all alleging corruption. That works out to better than an allegation a day on average, holidays included.'

T V R Shenoy on Tatragate.

Picking my steps carefully through the debris of Tatragate, there seem to be a couple of areas where there is lack of informed opinion and a third where there is a lot of misinformation.

Specifically, who was in charge when the Tatra deal was struck, how did the CBI get on Ravi Rishi's track with such impressive speed, and where do matters now stand between the Union defence minister and the chief of the the army staff?

The answer to the first question is that the Tatra agreement was signed in the Rajiv Gandhi [ Images ] era. What is more, it might have happened at a time when the then prime minister was simultaneously holding the defence portfolio.

To go back a quarter of a century in time, V P Singh [ Images ] was abruptly shunted out, for whatever reason, from the finance ministry in January 1987, and thrust into the defence ministry. He lasted barely two-and-a-half months in his new post, resigning -- or being forced to resign -- in April 1987.

In a delicious irony, the reason was that he had, reportedly without keeping Rajiv Gandhi in the loop, ordered an investigation into the purchase of HDW submarines from Germany [ Images ]. This was resented by the Congress -- then still called the 'Congress (Indira)' -- because the investigation seemingly called Indira Gandhi [ Images ] to account; the agreement was signed in 1981 when the Congress matriarch ruled India [ Images ].

Be that as it may, Rajiv Gandhi then took over the defence ministry temporarily. It was a masterpiece of poor timing; literally days after V P Singh's leaving, a Swedish radio station broke the news of the Bofors scandal, and Rajiv Gandhi's image never recovered.

Speaking of Bofors, during the heyday of the scandal one of the Congress's chief talking points was that Rajiv Gandhi had taken the initiative to bar middlemen from anything related to defence procurement. Remember this point, it is important.

Twenty-five years ago a defence minister known as 'Mr Clean' got into trouble for probing a deal that was struck by a previous government, one in which the prime minister was an iconic figure in the Congress. Was it Mark Twain that said, 'History does not repeat itself but it does rhyme'?

We must now come to the second issue, the alacrity with which the CBI is pursuing Tatragate.

Some reports suggest this happened because of General V K Singh's interview by The Hindu. This is wrong.

Some others say the credit should go to Dr Hanumanthappa, a Congress MP from Karnataka [ Images ], who wrote to several people, intimating that something was wrong with the Tatra deal. This too is wrong.

However, we should look a little into the Hanumanthappa episode. In 2009 Dr Hanumanthappa complained about alleged misdoings in the public sector undertaking Bharat Earth Movers Ltd [ Get Quote ], BEML. It is not quite clear how Hanumanthappa got to hear, but BEML is based in Bengaluru [ Images ], and Hanumanthappa himself has trade union links of old, so the workers at BEML might have let something slip.

Hanumanthappa complained that the Tatra trucks were not being purchased from the original manufacturer, but through intermediaries, who included Bharat Earth Movers Ltd and Vectra (in London [ Images ]). This violates the defence procurement rules quoted so often and so loudly by the Congress in the Bofors era.

I am not sure if any recipient got the message. Hanumanthappa spent several pages in general complaints before coming to the central point in, I think, the fourth paragraph of the fifth page (or something like that).

Hanumanthappa's letter reached Sonia Gandhi [ Images ], who, rather peculiarly, handed it to Ghulam Nabi Azad [ Images ]. (The Congress's rationale is that he is the Congress functionary in charge of party affairs in Karnataka, but a defence deal is scarcely a party issue.) At any rate, in October 2009 the letter found its way into A K Antony's office.

The defence minister did not ignore the letter, and asked for the matter to be probed. But A K Antony then made a mistake, he did not pursue the matter, something that he himself would openly admit as an error. (As far as I know, Hanumanthappa has still not received a proper response!)

How do you forget allegations of a multi-crore deal? The fact is that A K Antony's office receives something like ten letters a week, all alleging corruption. That works out to better than an allegation a day on average, holidays included.

But if it was neither General V K Singh's interview nor the Hanumanthappa letter that did the trick, what stirred the CBI into action?

Very simply, the CBI, like the tax authorities, looks into matters if it receives 'credible evidence'. This was one of those cases, and behind the scenes the investigators built their case without any fuss. And on February 21, 2012, if I have the date correct, the minister gave the sanction to prosecute.

Please note the date, it was about five weeks before General V K Singh's explosive interview. Note too that the sanction was given not just to 'investigate' but to 'prosecute'.

So, why did the CBI wait to go after Ravi Rishi, the man behind Vectra?

It has been wrongly reported in the media that Ravi Rishi is an 'NRI', a 'Non-Resident Indian'. The fact is that he is not an Indian at all, but a citizen of the United Kingdom. You could describe him as a 'PIO', a 'Person of Indian Origin', but he is not an 'NRI'. And trying to extradite a British citizen from Great Britain is difficult at the best of times.

But the CBI also knew that 'Defexpo 2012' was scheduled to start on March 29. India is one of the world's largest defence equipment importers, and it was extremely unlikely that any manufacturer would refuse to visit.

Sensibly, the CBI waited a few days until Ravi Rishi was in India, and available for questioning. That is how it reacted with such speed -- because it was already on the case.

How about the news items saying that the defence minister ordered a probe only after General Singh's interview? That investigation concerns only the specific allegation of bribery brought out in the chief of the army staff's interview, the CBI was already probing Tatragate.

This brings up the last topic -- the one that seems to interest the chatterboxes in Delhi [ Images ] the most -- namely how A K Antony and V K Singh get along.

The defence minister and the chief of the army staff are never going to be mistaken for bosom buddies, but they both have great respect for each other. Each sincerely believes in the other man's integrity, and also that the man across the table wants to do well by India. In other words, the foundation for a healthy professional relationship has always existed -- and continues to exist.

Frankly, this third issue is, at least to me, rather a banal topic. It is, one suspects, a smokescreen to divert attention from the mechanics of the Tatra deal, particularly how and why intermediaries were used when middlemen are barred from defence procurement matters.

But 'A K Antony vs V K Singh' makes the better headline, and there shall probably be more such 'diversions' to come courtesy of 'rogue elements'!

http://www.rediff.com/news/shenoy.html

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‘Coup politics’: Did a senior minister plant the spooky report?

‘Coup politics’: Did a senior minister plant the spooky report?
by FP Staff Apr 5, 2012

The sensational report in the Indian Express on Wednesday, which insinuated that the civilian government was perturbed by unreported Army troop movements on the night of January 16 in and around New Delhi, may have been ‘masterminded’ by a senior minister in the UPA government, according to media accounts.

The Indian Express report, which suggested (without saying so explicitly) that the government was fearful of a ‘coup’ by the Army chief, Gen VK Singh (who was then locked in an unprecedent conflict over his date of birth), was intended to “drain away support for Gen Singh” from within the political establishment, according to The Sunday Guardian.

Citing unidentified sources, the Sunday Guardian claims that the senior minister “tricked the (Indian Express) into running a baseless report”; it alleges, sensationally, that the senior minister’s relative is connected to arms procurement lobbies that have been “gunning for” Gen VK Singh for his having taken on corruption in defence purchases.

Is Army chief Gen VK Singh being smeared for standing up to corruption? PTI
“A close relative of the minister in question has been regularly meeting with arms merchants and their lobbyists, including on his many visits abroad,” the newspaper said, citing its sources.

It speculated, citing other military sources, that the insinuation about a coup attempt was intended not merely to discredit the Army chief but to paralyse the Army in its training functions. “Already, procurements have slowed to dangerous levels… Should the military’s freedom to undertake routine training exercise of the sort described… get curtailed (because of imagined fears of a coup), the military would very son lose its fighting edge,” it added.

But Indian Express editor-in-chief Shekhar Gupta, the man at the centre of a Twitter storm following the publication of the article, dismissed the allegations that the government had fed him the sensational story.

The suggestion that “someone in government would give me the story to publish… runs into many contradictions,” Gupta told CNN-IBN late on Wednesday.

“If the story was given to us by the government to put a General in his place, why would the government deny it?” Gupta wondered. “We are not such clowns that we would put ourselves up to these denials.”

The report that the Indian Express published was based entirely on facts, Gupta told NDTV. “We look at facts, we check them, we assess them and then we put them out in public domain…”

Acknowledging that people either say that it was a government plant or that “we are traitors”, Gupta noted that Indian Express had staked its credibility on the report. “We put our necks on the line. This is not a blog under a funny name like kaala kutta or safed billi… this is a genuine newspaper story… A lot of work has gone into it. We are quite happy to put facts like this in the public domain. Let them be scrutinised.”

As Firstpost has noted before, the entire controversy surrounding the tensions between the Army establishment and the civilian government – which are at the heart of the Indian Express article – are linked to the shadowy world of arms procurement deals.

That intricate web involves, by some accounts, some Indian politicians, even if there is as yet no confirmation of the role they played.

An earlier column in The Sunday Guardian (here) had explicitly named the Minister who, it alleged, is at the centre of the controversy. Subramanian Swamy too has alleged that the high-profile Union Minister’s son was linked to arms agents.

The plot is thickening. Now that the can of worms has been opened, much more muck is sure to come tumbling out.

http://www.firstpost.com/politics/coup-politics-did-a-senior-minister-plant-the-spooky-report-266859.html

Senior minister Sutradhar of coup report?
The Sunday Gaurdian
MADHAV NALAPAT NEW DELHI |
4th April, 2012

ources involved in tracking sensitive developments claim that a senior minister of the UPA government was the mastermind of the April 4 front page item in a daily newspaper about a suspected coup attempt. The sources claim that the minister is connected - through his close relative - with the defense procurement lobbies gunning for Chief of Army Staff General V K Singh,and that the decision to "trick the newspaper into running a baseless report was to drain away support for General Singh within the political class",who could be expected to unite against any effort at creating a Pakistan-style situation in India. However,the minister in question appears to have miscalculated the response of Prime Minister Manmohan Singh and Defense Minister to the report."The minister assumed that both would decline comment on the report, in view of their strained relations with the Army chief, but instead both came out foursquare against the newspaper.This surprised both the minister as well as journalists who relied on him for the initial information," a source claimed.

Others say that a close relative of the minister in question has been "regularly meeting with arms merchants and their lobbyists,including on his many visits abroad".They say that the Intelligence Bureau seems clueless about such activities,as "its net does not cover the influential people in question". Those connected with national security say that "the net of arms merchants is very wide, with Dubai,London and Bangkok being the three locations where they usually wine,dine and otherwise entertain VVIPs from India". In order to ensure protection for their operations,a lot of which involves dubious money transfers, such agencies and individuals "usually function as auxiliaries of foreign intelligence agencies, and are told to ferret out sensitive and secret information from their contacts". These sources claim that "non-declared units of selected NATO member country intelligence agencies (especially one with a huge presence in the defense procurement market in India ) regularly liase with lobbyists and employees of arms manufacturers,and use them for operations such as honeytrapping".In such a context,"their link with relatives of ministers is a worry."

According to these sources,the minister in question "is well-known to senior journalistic levels of the publication" that ran the coup report. A military source was "surprised that the newspaper in question ran such a story,in view of the high level of competence of its senior staff", but added that " a senior minister being the source of the initial information would explain their belief in the truth of the report". Other military sources warned that the "objective behind the leak was not merely to discredit the Chief but to paralyse the army in its training function". Already, procurements have slowed to dangerous levels because of repeated - and often accurate - claims of graft. Should the military's freedom to undertake routine training exercises of the sort described in the report get curtailed" because of imaginary fears of a coup, "the military would very soon lose its fighting edge". Military sources claim that even some civilian officials "are linked to arms lobbyists and through them to foreign intelligence agencies",and that these "want to take away even the little freedom of action that is left with the military" since the Nehru-era policy of removing of discretion from the uniformed services to the civilian side. While no one accuses the senior minister of wanting to degrade the capabilities of the army, these sources say that he has perhaps unwittingly "played into the hands of certain arms lobbyists who are salivating not only at the prospect of garnering huge army orders during the balance of the UPA's term in office" but "who seek to weaken the training function of the army and thereby render the force less effective against the sort of challenges that it is facing in Kashmir and other threatres."

Army sources say that "the strong rebuttal by the PM and the RM (Raksha or Defense Minister) has cheered those in the service who were unhappy at the way the Chief is being treated". However,this total denial of the news report would have come as a shock to friends and admirers of the senior minister in the newspaper,who took his conclusion that a coup was being planned at face value,and decided to run a report that took up the entire front page with an imaginary scenario that has inadvertently purveyed the falsehood that the Indian army is going the way of its Pakistan counterpart,and that General Singh is itching to do a Musharraf to Manmohan Singh's Nawaz Sharif.

http://www.sunday-guardian.com/investigation/senior-minister-sutradhar-of-coup-report

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Army has toy guns 07_04_2012_007_003

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army buta drama 07_04_2012_009_044

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Helicpoter 20120407a_008101012

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TOP BENEFICIARY
Communal conspiracy behind Army chiefs DoB verdict: PIL

Josy Joseph TNN

New Delhi:The row over the affairs of the Army and its equations with the government continues to turn murkier,with a PIL in the Supreme Court alleging a communal conspiracy behind the rejection of Army chief Gen V K Singhs claim for revision of his date of birth.
The PIL,filed by retired Navy chief L Ramdas,former Chief Election Commissioner N Gopalaswami,three senior former Army officials and others,say that ex-Army chief J J Singh,currently the governor of Arunchal Pradesh,masterminded Operation Moses to clear the way for Lt Gen Bikram Singh to succeed Gen Singh.
The PIL challenging Lt Gen Bikram Singhs appointment,which has been submitted to the SC registry,has said the Arunachal governor enjoyed blessings from the highest level,and that was why the conspiracy against Gen V K Singh succeeded even when he enjoyed the sympathies of defence minister A K Antony.
The PIL does not take names,but insinuates that J J Singh could not have succeeded without support from the highest echelons,considering that he being Arunachal governor was in no position to influence the line of succession after he retired.Lt Gen Singh,who is the Army chief-designate,would not have taken the top rank in the force if the incumbents plea for the revision of his age had been accepted.
The damning charges in the PIL,including the alleged communal dimension of the plot to deny Gen V K Singh an extended tenure,were confirmed by petitioners counsel,senior lawyer Kamini Jaiswal.It is unfortunate yet true that the present day politicians have succeeded in dividing all institutions on communal lines.The PIL has placed facts before the court it is for the court to arrive at a conclusion, said Jaiswal.
The disclosure of the sensational charge followed the stunning allegation by Gen V K Singh that rogue elements in bureaucracy concocted an impression of muscle flexing by his supporters to drive a wedge between him and the government.Explaining why a routine exercise was painted as a coercive attempt to force governments hands,the Army chief even went on to refer to a newspaper report that had blamed an unnamed Union minister of orchestrating the impression of a crisis: a first for a serving chief.
The petition arguing for scrapping Lt Gen Singhs appointment as COAS,harps on the role of someone at the top in determining the line of succession that favored the chief-designate.It says that there were constant references to orders from above,while Antony would acknowledge that his hands were tied.
The petitioners have alleged Lt Gen Singh is facing a case in the Jammu and Kashmir HC in an alleged case of fake encounter and that his lack of control over Indian peacekeeping force in Congo when the sexual scandal broke out is still under investigation,claiming that his appointments should not be approved on the same ground on which P J Thomas was removed as the CVC.

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RUBBING THE WRONG WAY
Nixed copter deal got Antony enemies

His Decision To Scrap 3,000Cr French Order Scared Arms Dealers,Lobbyists

Rajeev Deshpande TNN

New Delhi: The decision to scrap the Rs 3,000-crore Eurocopter deal at the last minute in December,2007,might have been the flashpoint that convinced arms lobbies,middlemen and political fixers that defence ministerA K Antony was aserious thorn in their flesh.
Antony took the tough call to cancel the order for the 190-odd attack helicopters for the Army due to irregularities in the bidding process and deviations from established procedures and this brought home to defence lobbyists and vendors,who were used to having their way,that it would not be business as usual anymore.
Sources said the Eurocopter decision sent shockwaves through the defence and business establishments as the contract was all but sealed and the firmness with which the French governments vocal protests were ignored induced a sense of panic among armsdealers and lobbyists.
Long used to peddling influence so that shortlists and seeding were altered and technical parameters re-jigged to disadvantage rivals,the new regime in the defence ministry after Antony took charge began to bother several interests.Soon,Antony was accused of slowing down defence acquisitions due to his fear of taint.
The charge of a defence freeze is contested,with official sources pointing out that even last year,66% of the defence budget was utilized by December,while around Rs 3,000 crore had to be returned to the finance ministry due to a resource squeeze affecting the central government.
With his political mandate aimed at keeping the government free of scam,Antony acted without hesitation whenever a serious complaint was brought to his notice,making it plain that he would easily scrap adeal or order fresh tendering.
The Eurocopter deal was not a flash in the pan.The defence ministrys insistence that all bidders for the Rs-100,000 crore 126-aircraft contract for the IAF fulfill excruciating technical parameters that would be the sole criteria for finalizing the deal made big names in the business nervous.
The failure of in-house lobbying and the exclusion of US F-16 s and F-18 s from the race along with the Russian MiG 35 at the technical evaluation stage led to outrage,with the Indian government politely,but firmly ruling out any reconsideration of its decision.
Sources familiar with proceedings said it was odd that criticism was leveled that India was restricting the race after the rules of selection were plain to all the bidders.The refusal to allow geo-political considerations to influence the deal left foreign suppliers and their Indian partners distraught and disbelieving.

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Tatra turned blind eye to violation of pact with BEML

TIMES NEWS NETWORK

New Delhi: The Central Bureau of Investigation has come across evidence which show that manufacturers of Tatra trucks did not object to a key violation of the contract agreement between them and defence public sector unit (PSU) BEML.
The violation,of BEML allegedly using the trade name and trademark of Czech Republic-based original manufacturer of Tatra trucks,is being examined in the light of the contract agreements between the two signatories in 1997,sources said.
Among the several documents recovered during raids,CBI officials have found the document related to the 1997 contract between BEML and Tatra Sipox,in which Paragraph 11 reportedly states that BEML cannot use the trademark of Tatra.
However,for so many years,BEML has been making trucks for the Army in the name of Tatra.They (BEML) are only buying parts from Tatra,not the trucks.They assemble the trucks here in India.We will look into the whole contract and other details, said a senior CBI official.
This is the reason that agency has also asked for the documents from Tatra as well,and a LR would be sent soon,seeking further information.The agency is also planning to soon question BEML chairman V R S Natarajan.
Earlier,the agency had questioned UK-based NRI businessman Ravi Rishi for six times in connection with the Tatra deal.The CBI probe is expected to take time as voluminous documents collected from the defence ministry in connection with the Tatra deal are being studied.

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Govt wants warm adieu for Gen Singh

Army Chief Still On Good Terms With Antony

TIMES NEWS NETWORK

New Delhi: The government hopes that Army chief Gen V KSingh's eventful tenure in office will now end on a less turbulent note as despite controversies that rocked civilian-military ties,the general is seen as a professional soldier with a sound grasp of strategic matters.
The row over Gen Singh's contentious demand that his date of birth be altered led to a souring of ties with the government besides rocking the top ranks of the Army.But his equations with defence minister A K Antony remain equanimous despite the high-octane events that saw the chief approach the Supreme Court in a failed attempt to correct his date of birth.
It is understood that the government continues to see Gen Singh as having worked for the betterment of the force he commands and will be more than glad to end the association on a no-hard-feelings note when the chief retires in May.Suggestions that the general may have political plans has not escaped notice but this would be seen as a personal choice.Some quarters feel Gen Singh would lose some of his standing if he were to join a partisan platform after retirement.
However,there is a sense of satisfaction in the government over the general scotching reports of there being anything sinister in the allegedly unauthorized movement of troops towards Delhi on January 16.The general described such movements as purely routine,echoing the position taken by the government after it was suggested that the Army chief's supporters had staged a show of strength on the day when he approached the Supreme Court over his date of birth.
The Army chief's allegation that he was offered a bribe with regard to a truck contract and the subsequent leak of a sensitive letter he wrote to the PM put the government and Antony in a tough spot.The defence minister ordered a CBI inquiry while the opposition demanded a response to the letter's contents that listed serious deficiencies in defence preparedness.
The suspicions and distrust between the government and the general are not likely to dissipate completely and while the ministry has moved to accelerate medium-term and long-term plans,sources point out that progress and scope of modernization will depend on macro factors like the Centre's finances.The ministry could ask for much more than is available although the defence budget has increased by 18%.
Inspite of financial limitations,the Army has raised two new divisions in Arunachal Pradesh,adding crucial muscle on the border with Tibet.The last time a new division was raised was during the tenure of the late R Venkataraman as defence minister in the early 1980s.

LET BYGONES BE BYGONES: The government will be more than glad to end the association on a no-hard-feelings note when Army chief V K Singh retires in May.Suggestions that the general may have political plans has not escaped notice but this would be seen as a personal choice

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Army pushes hard to regain combat edge,ramp up infra

Rajat Pandit TNN

New Delhi: Having jolted the government over the critical operational gaps in its military capabilities,the Army is now pushing hard for fast-track policies and acquisitions to enhance its combat ratio versus China as well as upgrade its combat edge against Pakistan.
The defence ministry,too,is responding with alacrity for a change.Defence minister A K Antony has called another review meeting with Army chief General V K Singh and his top brass later this month,after holding two such meetings on February 28 and April 2.It was between the earlier two meetings that the Army chiefs confidential letter to the prime minister,about the hollowness in military preparedness,found its way into the public domain.
For starters,the cases for one more regiment of the 300-km range BrahMos supersonic cruise missiles,two troops of Israeli medium-altitude,long-endurance Heron UAVs (unmanned aerial vehicles),and several types of ammunition ranging from Konkurs anti-tank guided missiles to Invar missiles for T-90 S main-battle tanks,will be finalized in this fiscals first quarter,top sources said.
Interestingly,the new BrahMos regiment will have the missiles Block-III version,which has steep dive capability'' to take out targets hidden behind a mountain range.After the western front,the government has approved deployment of these missile systems in Arunachal Pradesh to counter Chinas huge buildup of military infrastructure.

Admin · Guru

9 Apr 2012
Hindustan Times (Delhi)
Letters@hindustantimes.com
HT Correspondent

CBI to get details of Gen-lt meet

NEW DELHI: General VK Singh is likely to give all details of his meeting with retired Lieutenant General Tejinder Singh by Monday. General Singh has alleged that the retired officer met and offered him bribe to clear a tranche of 600 heavy duty Tatra trucks for the army almost one and half years ago. The CBI has not been able to start its probe into the allegation in the absence of details.

The General first made this claim in an interview and later in a formal communication to CBI. In the interview he had specified the bribe amount as R14 crore but chose to remain silent on the amount in his communication to the CBI.

“We will have to probe the matter thoroughly as the General has already given the name of the officer ... But without of details such as the circumstance leading to the meeting, the conversation etc we cannot proceed further in the matter,” said a CBI source.

Admin · Guru

9 Apr 2012
Hindustan Times (Delhi)
Abhishek.sharan@hindustantimes.com
Abhishek Sharan

Tatra case: BEML flouted deal terms

NEW DELHI: The CBI’S probe into alleged irregularities in the purchase of over 6,000 all-terrain Tatra trucks for the Indian army after 1997 has revealed violations of a contract signed between defence PSU Bharat Earth Movers Limited (BEML) and a Uk-based firm.

In a 1997 agreement signed between Tatra Sipox UK and the defence PSU, an “article” had mandated increasing indigenisation of the Tatra trucks but it was allegedly overlooked as part of a conspiracy between unidentified officials of the two firms, said a CBI source.

“The article 11 of the 1997 agreement had laid down that BEML should not use any trademark or trade name of Tatra. But this part of the agreement was not implemented by BEML,” said the source. CBI recovered the documents pertaining to the agreement between the two firms during recent searches of the BEML offices, the source added.

CBI has grilled London-based businessman Ravi Rishi, chief of the Uk-based Vectra Group that had “bought the majority stakes in Tatra Sipox,” said the source. The agency will be questioning BEML officials as part of its probe too. Both Vectra Group and BEML were named in the CBI’S First Information Report in the case.

The probe has now also found alleged irregularities in the supply of around 2,500 toolkits to the army by the UKbased firm.

“The agreement signed with a foreign trade corporation of Czechoslovakia for the supply of the vehicles was fraudulently assigned to the Uk-based, Tatra Sipox, by showing it as original equipment manufacturer or fully- owned subsidiary of the Czech firm, Tatra,” said the CBI source.

“This was against provisions of the defence procurement procedure,” the source said.

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Tank,ammunitions down to 4 days reserve

But Situation Not Worrisome As Stock Of Other Ammo Adequate

TIMESNEWSNETWORK

New Delhi: Presenting a sobering account of long-term as well as immediate challenges,senior IAF and Army brass told a parliamentary committee that while Indias window to catch up with Chinas defence modernization thrust could close by 2017 or earlier,stocks of certain types of tank munitions are down to four days of reserves.
Responding to queries posed by members of Parliaments standing committee on defence,IAF Vice-chief Air Marshal Kishan Nohwar said the asymmetry between India and China is widening with Beijings aggressive war doctrine powering a rapid expansion of its military.While the IAF Vice-chief said India would need to be proactive if its is not to keep lagging China in terms of its preparedness,Army Vice-chief Lt Gen S K Singh told MPs that there was a shortfall with regard to certain tank ammunition due to an Israeli firm being blacklisted,but the situation is not too worrisome as sufficient stocks are available with regard to most weapon systems.
Questions on tank ammunition rose from the leaked letter Army chief Gen V K Singh wrote to Prime Minister Manmohan Singh that referred to serious gaps in Indias defence preparedness.In view of evidence presented to the committee on Monday,chiefs of the three Services are expected to brief the panel on April 20.
On the controversy over the Tatra trucks,defence secretary Shashikant Sharma said the ministry had written to the Czech suppliers in February seeking to deal with it directly.However,the firm saidthe dealing should be through its London office,run by businessman Ravi Rishi who was questioned by the CBI last week.
Pointing to difficulties in changing the trucks,officials said the vehicles were the platform for Indias missile systems and could not be replaced at a short notice while responding to queries from Majlis-e-Ittehadul Muslimeen MP Asaduddin Owaissi,Congress MP Manish Tewari,Akali MP Naresh Gujral and committee chair Satpal Maharaj.
Sources said several questions on defence preparedness were asked about China in the context of a two-front war.The Army Vice-chief explained the shortage of tank ammunition was due to an Israeli firm being blacklisted and that Indias requirements were being sourced from Russia.He said the procurement process is being accelerated.
On the acquisition of trainers for the air force,the panel was told that while there were delays,the order process was in an advanced stage and could be concluded in May.The need for trainers would be all the more acute as India begins inducting the 126 Rafael fighters it has decided to purchase in order to boost its air power.
The IAF Vice-chief said lack of trainers meant that trainees were being able to complete just 25 hours of flying in their first year instead of 150.

MARCHING AHEAD: Army brass told a panel that Indias windown to catch up with Chinas defence modernization thrust could close by 2017

Admin · Guru

10 Apr 2012
Hindustan Times (Delhi)
HT Correspondent letters@hindustantimes.com

BJP MP: WROTE TO ANTONY ON TATRA TRUCK DEAL IN 2008

The BJP on Monday said its Jabalpur MP Rakesh Singh had written to defence minister AK Antony in May 2008, complaining against the Tatra truck deal.

The BJP MP had pointed out that Tatra trucks, priced at R65 lakh, were being bought from Tatra though the vehicle factory at Jabalpur was capable of manufacturing and selling trucks of a “better technology” for just R30 lakh.

“It’s wrong to say that Antony didn’t know about the R3000crore scam,” Rakesh Singh told journalists here.

“He should resign. If he were actually honest, as the Congress says, why did he allow this scam to happen despite having knowledge about it?”

BJP spokesperson Prakash Javadekar said, “What prompted Antony to become inactive on this issue? At whose behest were the sudden changes in procurement criteria made. The government and the prime minister owe an explanation.”

Singh said in the letter to Antony he had also complained against Ravi Rishi. “Rishi (promoter of Tatra) has been a negative catalyst in the recentlyscrapped Eurocropter defence deal. His involvement and other nefarious events led to the same deal being retendered.”

Singh claimed that the defence minister had replied to him saying, “I am having the matter looked into.”

The BJP said the party MP had also raised the matter during the zero hour in the Lok Sabha in October 2008 and asked why nothing was done despite Antony’s assurance.

Javadekar summed up: “We are focusing on two key issues — the price of Tatra trucks was much higher than that of the Jabalpur factory vehicles, and that there was inaction on part of the union government though the BJP MP had complained about the deal in 2008.”

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Antony trashes ammo crunch reports

Dubs Them Rumours,Says Operational Readiness Much Higher Than Before

TIMES NEWS NETWORK

New Delhi: Dismissing as rumours reports about critical shortages of tank ammunitions,defence minister A K Antony on Tuesday said Indias operational military readiness was at a much higher level now as compared to the past.
Antony,however,said there would always be some "shortcomings in the countrys war-fighting reserves.We cant expect 100% requirements to be fulfilled and the entire force is also not on the front.But I can assure you the country is fully prepared.India is in a much more stronger position as compared to the past, he said.
The statement comes a day after the army vice-chief Lt Gen S K Singh told the parliamentary standing committee on defence that though there was a shortfall in certain types of tank ammunition due to the blacklisting of an Israeli firm,the situation was not too alarming with regard to most weapon systems.
But the reserve stock of specialized tank ammunition,like the armour-piercing fin-stabilized discarding sabot in particular,was down to just four days.Gen V K Singh had also,in his confidential letter to the PM,which found its way into the public domain,pointed out that the Armys tank fleet was devoid of critical ammunition to defeat enemy tanks while pointing out other operational gaps in the 1.13-million strong force.
Addressing the IAF commanders conference on Tuesday,Antony said,Modernization is a continuous,time-consuming process and cannot be accelerated in fits and startsa number of procurement schemes have been finalized,while others are being processed for approval.

Mirages to fly again by month-end

New Delhi: After remaining grounded for over a month following two crashes in close succession,the Mirage-2000 multi-role fighters are expected to take to the skies by end-April.
On the sidelines of the IAF annual commanders conference on Tuesday,Air Chief Marshal N A K Browne said the Mirage-2000 fleet was undergoing systematic technical checks and would resume flying operations by month-end.The IAF,incidentally,swears by the Mirage-2000 s,which have a much better safety record compared to other fighters like MiGs and Jaguars.Only 10 Mirages have crashed since their induction in the mid-1980 s.TNN

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Bribe offer: Army chief files complaint

TIMES NEWS NETWORK

New Delhi: Army chief General V K Singh on Tuesday formally sent a written complaint to the CBI in connection with the Rs 14 crore bribe allegedly offered to him by a retired officer to clear the supply of Tatra trucks.
The agency is likely to register a preliminary enquiry on Wednesday.Sources,however,said that the army chief has not provided much material evidence to back his complaint in the bribery offer that dates to September,2010.He has not provided any CD as was being speculated or other such evidence.
The CBI is expected to seek legal opinion on the complaint and could approach attorney general G E Vahanvati.We are examining his complaint, said a senior official.CBI officials were,however.tightlipped about the contents,terming them highly sensitive and confidential.
Gen Singh is believed to have mentioned that he brought the alleged bribe to the attention of his seniors when the incident took place.He had claimed in media interviews that retired Lt Gen Tejinder Singh offered him a bribe of Rs 14 crore.Defence minister A K Antony had also told Parliament that Gen Singh had named Lt Gen Tejinder Singh.
Following Gen Singhs initial communiation with the CBI,the agency had sought a detailed description of the incident,a list of possible witnesses and supporting documents.

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Allegations concocted,Tejinder tells court

New Delhi: Terming allegations that he offered a Rs 14 crore bribe to Army chief Gen VK Singh for clearing a deal for 600 sub-standard vehicles as absolutely false,retired Lt Gen Tejinder Singh on Tuesday recorded his statement before a trial court in a defamation complaint filed by him against the army chief.
Tejinder Singh,who appeared before Metropolitan Magistrate Sudesh Kumar to give evidence to support his complaint,said the allegations of his offering a bribe on behalf of Tatra and Vectra Ltd,which supplies trucks to BEML,were ill-founded and concocted.
Besides the Army chief,Tejinder Singh has also filed a case against officers who he accuses of acting in concert with Gen Singh to issue a press release on March 5 leveling baseless allegations.
The court also recorded statements of three witnesses produced by Lt Gen Tejinder Singh former army Major R S Sahrawat;Tejinder Sings cousin,Bhupender Chaudhary and one Suman Chaudhary,who said he knew the former Lt Gen for the last 40 years.The court has now listed the matter for April 21 for orders on summoning the persons named as accused in the criminal complaint.
Deposing before the court,Lt Gen Tejinder Singh contended all the five officers he has named formed a direct chain of command with the army chief being the final arbiter.He said that between March 3 and 5 this year,a number of media reports referred indirectly to the Army Chief having allegedly ordered unlawful monitoring of mobiles,particularly in the South Block area.TNN

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MPs seek 5-yr cool-off period for retd officials

TIMES NEWS NETWORK

New Delhi: With a controversy raging over army chief Gen V K Singhs allegation that a retired officer offered him a Rs 14-crore bribe,the demand that the cooling-off period of retired military officers be extended from one to five years is gaining traction.At a meeting of Parliaments standing committee on Monday,the MPs called for stricter norms to check the trend of former military officers working for defence firms or as liaisons for middlemen.Now,retired officers can work with defence firms after a one-year gap,or even less with the governments permission.
Some committee members called for a minimum two-year cooling off after retirement,while a senior government official taking part in the panels deliberations not only agreed with the MPs but suggested the tenure should be at least five years.
It is common for retired military officers to join defence firms,especially foreign ones,and the case of Gen V K Singh accusing retired Lt Gen Tejinder Singh of lobbying on behalf of the manufacturer of Tatra trucks kicked off a political storm with the case being the subject of heated discussion within the walls of the defence establishment as well.Many retired officers who have held senior positions,work as consultants for arms agents and perform a shadowy role in facilitating defence deals.They exploit the goodwill and the contacts they enjoy in the Services,and are known to become a corrupting force,committee members argued.

Times View

Like the ban on commission agents after the Bofors scandal,the idea of a five-year cool-off period for defence officers after their retirement may sound great but is unworkable in practice.If there are officers who are willing to act as lobbyists for armaments sellers,they will find ways of doing so,whether they are formally employed by them or not.In fact,its much better if theyre formally employed.At least,everyone will know who is lobbying for whom,which is a surer antidote to corruption than pushing things in the shadows of secrecy.As TOI has often said,transparency is a much better way of dealing with corruption than bans and new laws.

In the wake of army chief Gen V K Singhs bribe claim,MPs have called for stricter norms to check the trend of former military officers working for defence firms or as liaisons for middlemen

Admin · Guru

11 Apr 2012
Hindustan Times (Delhi)
Rajesh.ahuja@hindustantimes.com
Rajesh Ahuja CONTINUED ON PAGE 6

‘Vectra chief made R250cr from Tatra truck deal’

NEW DELHI: The CBI has estimated that the purchase of 5,000 Tatra all-terrain trucks for the army since 1997 in violation of defence purchase norms enabled London-based Vectra chief Ravinder Rishi to pocket R250 crore. He made around R5 lakh per truck that cost the army R72 lakh in 2010, CBI sources said.

Rishi has been named as an accused in the FIR registered by the CBI, which is probing the deal on the basis of complaints by the defence ministry and other sources. Rishi, who came to India last month to participate in a defence equipment exhibition, has been questioned by the CBI several times.

The CBI is also focusing on the role of top officials of the public sector Bharat Earth Movers Ltd (BEML), which purchased the trucks through Tatra Sipox (UK) — part of the Vectra group — instead of procuring them directly from the Czech manufacturer.

Investigators found that Tatra a.s., the Czech maker of the trucks, repeatedly wrote to BEML to purchase directly but the requests were ignored.

When BEML entered into an agreement with Tatra Sipox, the latter did not have the right to use the Tatra trademark. So, a clause was added that BEML would not use the word Tatra on the trucks but could mention the model number.

Army chief Tuesday sent an officer to CBI HQ with details of alleged R14- crore bribe offer made by Lt Gen (retd) Tejinder Singh in 2010

Sources said Gen VK Singh has provided documents to buttress claim. Hasn’t sent any audio or video discs

Alleged bribe offer pertains to Tatra trucks, but CBI is probing the chief’s complaint separately

Admin · Guru

11 Apr 2012
Hindustan Times (Delhi)
Letters@hindustantantimes.com
HT Correspondent

Nation
HC bans army movement reports

JAN 16 EPISODE Court says movement doesn’t require public discussion at cost of official secrecy, national security

LUCKNOW: The Lucknow bench of the Allahabad High Court has imposed a ban on further news reports on the troop movement towards Delhi that had hit the headlines recently.

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The matter was reported by The Indian Express earlier this month and was subsequently picked up by television channels, resulting in a controversy that forced the Prime Minister, the army and the defence ministry to issue clarifications.

On Tuesday, the court said, “The movement of army troops is not the kind of matter that should require public discussion at the cost of official secrecy and the security of country.”

The division bench comprising Justice Uma Nath Singh and Justice VK Dixit directed the Union home secretary, the Union secretary of I&B ministry and the UP principal secretary to ensure that the order is not violated.

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The bench passed the order after a PIL was filed by social activist and freelance journalist Dr Nutan Thakur.

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2nd co under Vectra within CBI radar

Agency Probing Venus Projects Role In Purchase Of Trucks

Neeraj Chauhan TNN

New Delhi: CBI is investigating Venus Projects,a second company belonging to London based businessman Ravi Rishi of Vectra group,after the NRI was named by Army chief Gen V K Singh as the person behind a bribe offer made to the general.
The CBI is scanning Rishi over a complaint by Gen Singh that he was approached by a retired officer Lt Gen Tejinder Singh for a contract for supply of Tatra trucks that the Army chief has said were substandard.
Ravi Rishi is being investigated for his links with Venus Projects as agency sources said the company was used by him for purchasing spare parts for Tatra trucks.The agency believes that the deal was signed between Ravi Rishis Vectra Group and BEML officials within three days of their meetings in 1997.
Sources said,There was a meeting between BEML officials,Ravi Rishis Vectra group,Tatra Slovakia and other associates on June 11,1997 in Slovakia,and on June 14,1997 the MoU for procuring 600 Tatra trucks was signed in Bangalore.CBI suspects BEML did not have a board meeting before the MoU was signed in a hurried manner.
Venus Projects is being seen as another link between Rishi and the Czech firm that projected the UK-based businessmans Vectra Group as the original equipment manufacturer to ensure that it remained central to any deal signed with BEML for supply of Tatra trucks.
Agency sources say that they have sought time from Gen V K Singh to know more about the bribe offer.The investigative team is hoping to meet the Army chief on Friday and later call Tejinder Singh for questioning.
The agency has sought documents of Venus Projects and Tatra Sipox (UK) to know about meetings held in June 1997.CBI is also likely to call officials of BEML who were involved in the MoU signed on June 14,1997.CBI is also examining a large number of documents related to contracts of BEML for procuring Tatra trucks since 1997.The agency will also be questioning BEML chief V R S Natarajan soon.
The agency is also in the process of sending Letter Rogatories to Czech Republic (original Tatra a s is based there),Slovakia and UK.
In his written statement filed with the CBI,Gen VK Singh has claimed that Lt Gen (retd) Tejinder Singh had approached him on September 22,2010 offering Rs 14 crore as bribe for clearing the purchase of Tatra trucks.The Army chief has said that the retired Army officer told him that the bribe was being offered on behalf of Ravi Rishi.

Antony warns def PSUs to maintain probity

With Bharat Earth Movers Limited (BEML) under the CBI scanner in the Tatra trucks and other controversies,defence minister A K Antony on Thursday sternly warned the eight defence PSUs to maintain probity and transparency in all their dealings.
There should be no compromise on transparency in dealings with clients and users, said Antony,in an hour-long meeting with the PSU chiefs,including BEML chairman V R S Natarajan and his counterparts from Hindustan Aeronautics,Bharat Electronics,Bharat Dynamics and four shipyards (MDL,GRSE,GSL and HSL).
Asking them to set benchmarks in terms of probity,the minister said the PSUs should ensure timely delivery of products,quality assurance and product support to their primary customers in the shape of the 13-lakh armed forces.Natarajan,who has been the chief of the mini-ratna defence PSU for a decade,is himself facing some heat in the ongoing CBI probe after Antony on February 21 accorded sanction for the investigation into the functioning of BEML.There are several allegations of financial irregularities and fudging of accounts against BEML,which has an annual turnover of Rs 3,624 crore.The CBI is also conducting the comprehensive inquiry into the Rs 14-crore bribe offered to Army chief Gen V K Singh allegedly by retired Defence Intelligence Agency chief Lt-Gen Tejinder Singh in September,2010,to clear another tranche of 600 sub-standard Tatra vehicles supplied by BEML in collaboration with Tatra Sipox (UK).Over the last 26 years,the armed forces have inducted 7,000 Tatra heavy-duty vehicles,which Natarajan says are unmatched in capabilities through a BEML tie-up first with Czech firm Omnipol and then Tatra Sipox (UK).TNN

WORDS OF CAUTION

The Vectra group claimed that 60% of Tatra is now indigenized,and both 4x4 and 6x6 variants are now right-hand drive vehicles

Admin · Guru

13 Apr 2012
Hindustan Times (Delhi)
HT Correspondent letters@hindustantimes.com

Antony tightens screw on defence PSUS

In a bid to wipe out corruption in arms deals, defence minister AK Antony Thursday asked the chiefs of defence public sector undertakings (DPSUS) to place highest premium of transparency.

Antony’s meeting with the eight DPSU chiefs came at a time when Bharat Earth Movers Limited (BEML), a public sector undertaking, has come under the CBI scanner for irregularities in the Tatra truck deal.

The minister had on March 26 ordered a CBI investigation into army chief General VK Singh’s stunning allegations that he was offered a R14- crore bribe by a retired lieutenant general to buy 600 “substandard” Tatra trucks for the army in 2010.

BEML supplies to those trucks to the army on behalf of Tatra and Vectra Limited.

In a virtual warning to the DPSU chiefs, Antony is learnt to have told them that no compromise in transparency would be tolerated.

BEML chief VRS Natarajan was also present at the meeting. The CBI is looking into Natarajan’s role in the Tatra contract and he is likely to be questioned soon.

The BEML chief has, however, maintained that he had not received a single compliant from the force about the performance of Tatra trucks.

BEML has supplied 7,000 trucks to the army since 1987 through a tie-up with Czech company Omnipol Foreign Trade Corporation till 1997 and later in partnership with UKbased Tatra Sipox.

Antony asked the DPSU chiefs to bring about more transparency in their dealings with clients and other stakeholders.

He also asked them to stick to timelines and ensure there were no slip-ups when it came to product support and aftersales services.

“The DPSUS have been asked to set benchmarks of standard and quality for the private sector companies in the defence production sector,” defence ministry sources said.

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CBI likely to interact with Gen V K Singh

To Arrange A Meeting With Army Chief About The Alleged Bribe Offer Made To Him

Neeraj Chauhan | TNN

New Delhi: While the Central Bureau of Investigation (CBI) examined three senior executives of Bharat Earth Movers Limited (BEML) over the week,the agency is waiting to interact with Army chief Gen V K Singh,who was away in Punjab on Friday.The three officials of BEML examined include its executive director (finance) Pradeep Swaminathan to gain a better understanding of the Tatra deals and payment modes.
Sources said the agency is in touch with Gen Singhs office to arrange a meeting with the Army chief about the alleged bribe offer made to him by Lt Gen (retd) Tejinder Singh on September 22,2010,allegedly on behalf of UK businessman Ravi Rishi.
Ravi Rishis firms,including Tatra Sipox (UK) and Venus Projects,are under CBI scanner as both companies procured parts for Tatra from Tatra a.s.(Czech) and Tatra Sipox (Slovakia).
In his complaint,Gen Singh made some scathing comments on the Tatra procurement process,sources said.He has said that even if there was a backlog for procurement in the defence,there was no requirement for such large purchase of Tatra trucks raising question mark whether the entire deal was deliberately hastened.
Agency sources say they are probing as to why BEML decided to procure Tatra parts from Tatra Sipox (UK),which has been a private firm since 1997.Earlier,it was procuring the parts through Omnipol (a PSU in Czech Republic) from 1986.The agency is questioning why BEML officials signed an MoU with Tatra Sipox (UK) in a hurried manner on June 14,1997,in Bangalore,three days after they held a meeting with Tatra Sipox (UK) and its associate companies officials in Slovakia.
The BEML officials,including Swaminathan,examined so far,were reportedly called to clarify the finer points of the truck supply deal with Tatra Sipox (UK) and subsequent changes.The agency asked them to spell out the reasons for signing a contract with Tatra Sipox (UK) that was not the original equipment manufacturer in 1997,and its renewal in 2003.
They were also asked the rules which could have been violated in doing so and whether such an action was in accordance with the procurement rules apart from payment modes adopted for Tatra Sipox (UK) and where the payments were actually going, said a source.
Meanwhile,two Colonel rank officials,nominated by the MoD for helping CBI in the probe,joined the agency on Friday.

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Army chief stalled BEML contract in 2010

New Delhi: Bharat Earth Movers Limited (BEML),which is in the eye of the storm kicked up by the Army chief s claim about a Rs 14-crore bribe offer,was preparing to supply 1,000 Tatra trucks in 2010 when General V K Singh stalled the entire acquisition.
Sources said BEML,the Bangalore-based defence PSU,had on the assurance of the then Master General of Ordnance (MGO) of the Army in 2010,had taken advance action for supply of 1,000 Tatra vehicles.All these vehicles were to of 6x6 and 8x8 variants.
It is not clear if Gen Singh refused clearance after September 22,2010,the day he was allegedly offered the bribe by Lt Gen Tejinder Singh on behalf of Tatra.Tatra truck purchases are usually sent by MGO directly to the ministry of defence (MoD),BEML later pointed out to the MoD.But in 2010,the Army chief had asked for the Tatra file and put the acquisition on hold.Instead,the Army moved a proposal to the Defence Acquisition Council,headed by defence minister A K Antony,for a competitive global tender for the purchase of 6x6 and 8x8 trucks.The last order for Tatra trucks were placed with BEML in March,2010,a few days before Gen VK Singh took over as the Army chief on March 31.The last order was for 788 vehicles out a total projected requirement of 3,296.
While the last order was placed by MGO Lt Gen Vinay Sharma,his successor told the BEML that there was no requirement for new vehicles to be acquired from revenue budget.
The Army is presently processing the global competitive tender,which could take several months to complete.The forces stand on Tatra acquisition would be a key component of the ongoing CBI probe into Gen Singhs allegation that he was offered Rs 14 crore bribe for clearing the purchase of Tatra trucks.TNN

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Vectra chief asked to submit papers on deal

New Delhi: London-based businessman Ravi Rishi faces an Enforcement Directorate (ED) inquiry over his involvement in alleged irregularities in the supply of Tatra trucks to defence public sector Bharat Earth Movers Ltd (BEML).
CBI has already questioned Rishi and ED has now asked him to produce documents related to the Tatra Sipox UKs memorandum of understanding with BEML that was inked in 1997,including details of financial statements and tax returns.ED can ask for similar documents from BEML as also the defence ministry.
The first agreement for supply of the all-terrain Tatra trucks used for the transport of soldiers,heavy machinery and missile systems was signed with the Czechoslovakiabased company Tatra in 1986.
In 1997,BEML started procuring trucks through Tatra Sipox UK,claiming the firm to be the marketing arm of Tatra.Rishi has a substantial stake in the UK company.
CBI has alleged that since Tatra Sipox UK is not the original manufacturer,the rule that defence procurements should be contracted from the original manufacturer was violated.Tatra has claimed that Rishis firm is an original equipment manufacturer.

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CAG reviews army purchases

Pradeep Thakur TNN

New Delhi: After CBI and Enforcement Directorate,now the Comptroller and Auditor General (CAG) is reviewing procurements in Services and defence preparedness of the country.A report is expected in the forthcoming Budget session.
Irregularities in defence purchases are nothing new,but it has reached new heights.A CAG report in recent past had carried out review of 18 sensitive defence deals between 2003 and 2006.The auditor found that in at least 66% of these cases,there were single bidders left in the fray at the final pre-qualified stage after trials were conducted.And in the remaining six,there were only two bidders each.This defeated the purpose of competitive bidding (See box below).
In some of the cases,it was found that new bidders were introduced in middle of the tendering process.The ministry of defence (MoD) even changed specifications in certain cases after issue of tenders with complete disregard to the norms.
These contracts pertained to acquisition of explosive detector,thermal imaging,binoculars for troops,air target imitators,combat diving equipment,remotely operated vehicle,helicopter mounted surveillance system,payload for UAV,oxygen mask and demining equipment among others.
It was found that the number of vendors,who responded to the request for proposal (RFP),was far less than the number of vendors identified and issued RFP,while restricting the competitive process.
The market survey for capital acquisition was limited and there was no system of vendor rating or information on the past performance of the prospective supplier.All these procurements revealed that there was no coordination among the three forces.The Army has resorted to independent procurement for common items,which,if done jointly,could have obtained best value for money.
In almost 50% of the deals scrutinized it was found that specifications were changed by the Army after issue of tenders.It was also found that number of repeated orders was considerably high,indicating that increased volume of scale was not exploited to negotiate better terms.

UNDER SCANNER

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16 Apr 2012
Hindustan Times (Delhi)
HT Correspondent letters@hindustantimes.com

Dhumal, army lock horns over a ground

LAND ROW Himachal CM threatens defamation suit after army accuses him of ‘grabbing’ ground for cricket stadium

The party may have accused the Centre of mishandling relations with the army because of lack of “statecraft”, but a BJP CM is now at loggerheads with the army, threatening the Western Command with a defamation case.

After the army publicly accused the Prem Kumar Dhumal government in Himachal Pradesh of conniving with land mafia in "proposing" to build a cricket stadium at Annadale Ground in Shilmla, Dhumal threatened it with a defamation suit unless it apologised unconditionally.

Talking to reporters here, Dhumal added this latest action of the army was also a "violation" of the federal structure: “Central agencies have been interfering in the states' domain. After NIA and IB, the army has also come into the picture.”

The Ground in question was with the army since World War II, was leased out to it after independence, though there the lease has not been renewed since 1982.

“For 30 years, it is under illegal occupation of the army. We had offered them another land in Ghandal village in 2002, but they rejected the proposal in 2011,” said Dhumal. “We have just said this time that we'll forward representations (of people for a cricket stadium there) to the Prime Minister.”

He claimed that not a single cricket association — his son Anurag Thakur is associated with these — had asked for a cricket ground here.

Dhumal accused the army of “letting go of land on the China border,” saying it was now defaming the state government for a land where army men just “play golf”.

He added, “Chinese planes have come into the state's territory in the past and there is no response from the Centre. The army should be more active where they are required to be.” He also accused the army of having stopped Muslims from reading the Namaz in Nahan, adding the state had then intervened.

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Hitting out at the army claim that the state government was destroying forest cover, Dhumal said, "It seems the Western Command is responsible for forests too." He said the state had, in fact, added to its forest cover. Dhumal, however, added that he had done a lot for the army, saying he was the only CM to visit Kargil during the Kargil war.

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Govt shoots warning on graft in arms deals

Cashes Banned Israeli Firms 224cr Bank Guarantee

Rajat Pandit TNN

New Delhi: Invoking penal provisions of the integrity pact in arms deals for the first time,India has cashed the Rs 224-crore bank guarantee given by Israeli Military Industries (IMI),one of the six armament companies blacklisted for 10 years by the defence ministry recently.
This is meant to serve as a stern warning to IsraelIndias second-largest supplier of military hardware and software after Russia,with annual sales worth around $1 billionto ensure probity in defence deals.
IMI,fully-owned by the Israeli government,was cornering a major chunk of the business before being banned for its name surfacing in connection with the corruption scandal against former Ordnance Factory Board (OFB) chairman Sudipto Ghosh.
Interestingly enough,two other major Israeli firms,Israeli Aerospace Industries and Rafael,named in the kickbacks case in the original Rs 1,160-crore Barak-I anti-missile defence system deal signed in 2000,have not been blacklisted on the ground that it would be counter-productive due to the several crucial defence projects underway with them.
The IMI case in question is linked to the contract inked with OFB in 2009,worth around Rs 1,200 crore,to set up an ordnance complex of five plants at Nalanda in Bihar.The plants,which were to come up in three years,were to manufacture 155mm Bi-Modular Charge Systems (BMCS) and other propellant charges for heavy-calibre artillery ammunition for the armys Bofors howitzers and other guns.
But everything was put on hold after the OFB scandal,which eventually led the defence ministry to blacklist IMI,Singapore Technologies Kinetics,Rheinmetall Air Defence (Zurich) and Corporation Defence of Russia,along with two Indian companies (T S Kisan & Co and R K Machine Tools Ltd),earlier this year.
The move to cash IMIs bank guarantees was announced on Monday after defence minister A K Antony held a meeting to review the functioning of OFB,which had a turnover of Rs 12,391 crore in 2011-12,since the Israeli armament giant had breached the integrity pact.
The integrity pacts bank guarantee is inked with any vendor who bags a defence deal worth over Rs 100 crore.It is supposed to ensure that no unfair and unethical means are employed in winning arms deals,specifically banning bribes during the entire procurement process.
With the MoD approving Rs 15,764 crore for the modernization of ordnance factories over the 12plan period (2012-2017 ),officials claimed the Nalanda factory would become operational this year.

Armed forces on alert after Kabul attacks

D efence minister A K Antony on Monday asked the armed forces to be vigilant in light of the bomb attacks in Kabul on Sunday.Addressing the Army commanders conference,Antony said the armed forces should take all appropriate steps in view of the developments in Afghanistan.India remains steadfast in its commitment to provide support and assistance to Afghanistan so that it evolves into a stable country,strengthened by pluralism and free from external interference, he said.Noting the volatile situation in Indias neighbourhood,Antony said,Our defence forces and all other security agencies must remain prepared to tackle the entire range of security challenges. Foreign minister S M Krishna too expressed profound concern over the situation to President Hamid Karzai.TNN