Definition of troops

Guest (Querist) 17 November 2011 This query is : Resolved
I am trying to prepare a meaningful Draft PIL to be submitted on line to PIL Cell Supreme Court on gross abuse of CSD facility through URC( Unit Run Canteens). CSD facility is meant exclusively for Troops and availed only through URCs. But What do these terms Troops,CSD & URCS meant to the civilians especially the lawyers and the civil judges? And that is very important for me to understand. I am a retired defence personnel and understand what those terms exactly mean and they are also defined in the Glossary of Military Terms .
Can you please advice on this very important issue to drive my point home to the Judges at the Supreme Court .

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Raj Kumar Makkad (Expert) 17 November 2011
It shall be better for you to first post your draft so that it may be got checked and further suggestions may be given. As per my knowledge, there is no any quota for lawyers of judges in CSD canteens.

Arvind Sehdev (Expert) 17 November 2011
Agree easier to give suggestions on a draft...

Rajeev Kumar (Expert) 17 November 2011
I do agree with Mr. Makkad

Guest (Querist) 17 November 2011
Dear Sri Makkad
Did I say anywhere that CSD facility is being extended to either lawyers / Judges. I think not.
I am fighting on the issue of :-
Running of URCs to sell CSD goods( less liquors) by the CDA ( Controllers of Defence Accounts)Staff/Est. CDA Est/Staff are running 38 URCs at different location in this country in govt accommodations. Now the CSD staff/Est are also running their own URCs at the respective Depot where they stock CSD goods for delivery to the intended URCs in that station.
Here comes the question of established definition of CSD, Troops and Unit. If I am permitted to highlight the Definition of those terms as per military terminology they are as under:
CSD -Canteen Stores Department, A department of Defence , Min of Defence Govt of India( Head Office located at Adelphi, Mumbai with 34 Depot at various location in the country) whose sole objective is to provide CSD goods including liquors( Indian manufactured foreign liquors as well as imported liquors) to Troops at rates cheaper than the prevailing market rates. This is purely a welfare measure exclusively for the troops.
Troops-Serving Men/ women in uniforms from three regular military services namely Army , Air Force & Navy.The term includes Ex-servicemen as well which also can be contested.
Unit- Smallest independent body of troops engaged in a common military task.Unit can be either in peace station or in field.

What I am trying to contest at this point of time that CDA/ CSD which are department of Defence posted with civilian govt employees neither can be termed as UNITS nor can their employees be denoted as Troops.

As per diktat CSD is mandated to provide CSD facility to Troops only. But in collusion those civil departments have been allowed to run their own URCs where none of their employee is even eligible for CSD facility.
I will try to put the draft once it is ready.

Devajyoti Barman (Expert) 18 November 2011
Mr Makkad, Mr Mandal is still waiting for your reply.

Guest (Expert) 18 November 2011
Mr. Haridas,

The meanings or definitions pertaining to the terms used in defence services are mostly available in the operational and procedural manuals meant for use of the departments of defence services. So, it would be better if you try to search the meanings of Troops, CSD & URCS in such manuals please.

Guest (Querist) 18 November 2011
Dear Sri Dhingra
While in service we, the men in uniforms living in the military barracks or MES quarters away from markets etc were referred to as the military society and those living beyond the military barracks ordinarily known as the civil lines were referred to as the civil society. We by Army Act and Rules were , still are debarred from speaking to the Press or dealing directly with the civil society. In gist we were insulated till Anna's movement redefined Govt of the day especially at the centre as the Feudal Society and Team Anna as the Civil society.
I am well aware of the definition of the terms which I am going use frequently in my PIL against running of URCs by the CDA Staff/est. Almost all terms in use in the Army can be found adequately defined in Glossary of Military Terms , a hand book published by the Trg arms of the Army Headquarters.What I am worried that CSD facility is much abused and is being extended to civilian employees of the govt who not even eligible to avail CSD facility. Secondly as per the SC ruling by retired judge Dr Prasayat .j URCs have been declared as private ventures not withstanding by the ruling the justice has made private practice by the govt servants while in office ( men in uniform) a law against the Law of the Land itself.The Army as well as the CDA, csd Aall are seen celebrating the historical ruling by the justice Dr Prasayat.j. Here comes the question of general perception of the civilians living outside the boundaries of the military Lines and the general understanding of the terms namely CSD, URC& Troops. I am sincerely trying to get a feel and a feedback from the learned members of our legal fraternity to armed myself well before I give final shape to my PIL assuming there are many of the likes of Justice Prasayat.J willing to help the Holy Cows.

Raj Kumar Makkad (Expert) 18 November 2011
Hon'ble Supreme Court vide judgment dated 4th January, 2001, 2001 (1) SCC 720 was confronted with the issue whether this Tribunal had jurisdiction to entertain applications and decide the grievances of employees of URCs, which provide canteen facilities to the troops at Unit level. Applications were filed before this Tribunal by URCs employees claiming benefits as regular defence employees or at least as civilian employees serving under the Ministry of Defence stating that URCs are part of Canteen Stores Department and since Canteen Stores Department forms a part of the Government in the Ministry of Defence, there is no reason as to why URCs should not be held to a part of Ministry of Defence.

Raj Kumar Makkad (Expert) 18 November 2011
URCs are part of Defence establishment and consequently holder of a post in the management of such canteen must be held to be connected with the Defence Services. According to Union of India, URCs are operated by non-public fund and expenditure required to run the Unit Canteen is made out of profit earned by the Canteens itself and, therefore, so far as the personnel serving in such Canteens, there is no relationship of master and servant between the Government and the employees.

Raj Kumar Makkad (Expert) 18 November 2011
URCs are part of Defence establishment and consequently holder of a post in the management of such canteen must be held to be connected with the Defence Services. According to Union of India, URCs are operated by non-public fund and expenditure required to run the Unit Canteen is made out of profit earned by the Canteens itself and, therefore, so far as the personnel serving in such Canteens, there is no relationship of master and servant between the Government and the employees the service conditions of employees in the URCs at an early date.

So, there is no point to be raised as everything is proper as per latest guidelines.

Guest (Querist) 18 November 2011
Thanks Dear Sri Makkad
But I am far from being dis-couraged.

Guest (Expert) 18 November 2011
Dear Haridas,

If my perception is not incorrect, to my knowledge, the CSD canteen facilities are not extended directly to the civilians, but defence personnel themselves oblige their civilian relatives, friends and other known persons by making purchases only in their names. I hope, you would also have been doing so while in service.

Guest (Querist) 18 November 2011
Dear All
I understand there are emotional attachments.My PIL is all about debarring Controllers of Defence Accounts (CDA) the official auditor of Defence accounts.
CSD is meant exclusively for the troops. I think none in this forum disagrees. Even if CSD stores(only groceries) are made available to the Defence Civilians from the Services Canteens( URCs) many of us may not object as the profits accrued still go to the Regimental funds ordinarily being used for welfare of the troops with some abuses here and there.
Now what about allowing the CDA Staff / Est to run their own URCs make profits and get it distributed amongst themselves as dividends as they have neither Regimental Fund nor such established norms to utilise the profits judiciously.There are other aspects to be looked into as well. By allowing the auditor into such illlegal activities for personal gains what is being achieved by the big-wigs in the ministry of Defence as well as at the top echelon of military commanders- except dilution of quality of audit of defence accts resulting into Mega Defence Scams in the past and continuing unabated.
I am sure no patriotic Indian will allow its finest military to go to the dogs abusing the CSD facility and allowing it to be abused by the Country's primier Defence Audit auth. Mr Dhingra at this point we do not concur.

Devajyoti Barman (Expert) 22 November 2011
All the best to you.

Guest (Querist) 22 November 2011
You mean to say no more help from the experts?

Guest (Querist) 22 December 2011
Here is my Draft PIL on the issue. Documents are many and could not be uploaded. I will wait for your comments on the issue please.
Pl open the link:

http://indianmilitarynews.wordpress.com/2011/09/15/forces-cag-lock-horns-over-canteens-audit/

Guest (Querist) 16 January 2012
Dear All
And finally my draft for your comments please:-

To,
The Hon'ble Chief Justice of Supreme Court and his companion Justices of the Supreme Court
The humble petition of the
Lt Col (Retd) Haridas Mandal
Flat No 401 Ushodaya Apts
SV Colony, RK Puram
Secunderabad-AP-500056
Petitioner(s) above named.
MOST RESPECTFULLY SHOWETH
1) The present petition under Article 32 of the Constitution of India is being filed by way of public interest litigation and the petitioner has no personal interest. The petition is being filed in the interest of entire range and depth of the citizens of this country who are paying taxes directly or indirectly to the govt at the centre as well as govt at the States including the Union Territories.
2) That the petitioner is a retired Army Officer who was commissioned in the corps of EME in the category tech graduate entry on 16 Dec 1978.The petitioner after serving 30 plus years in the Army was retired on superannuation at the age of 54 on 31 Jan 2009.During his service he had held important positions in the field of logistics in the Corps of EME. Besides techno-managerial duties he was assigned instructional as well as Regimental duties which included running of CSD Canteens (rechristened as URC later) selling CSD goods and liquors to the troops. The petitioner can therefore claim to have intimate knowledge of the workings of the canteen services which is meant exclusively for the troops.
3) The petitioner is filling this petition as a private person. The petitioner has earlier not filed any other public interest petition. The petitioner is filing the present petition on his own and not at the instance of someone else. The litigation cost and such incidental expenses are being borne by the petitioner himself.
4) That this petitioner has found irregularities in running the CSD canteens for the military persons. And due to these irregularities huge losses are being incurred by the govt.
5) That this petitioner collected various documents to establish the irregularities and corruption. Every documentary evidence is enclosed hereby as a proof.
6) Grounds
a) The petitioner while in service posted to Army Base Workshop NRS Meerut (UP) during 2005-2007 came to know about distribution of dividends from the profits earned by the URC being run by Controller of Defense Accounts Meerut (CDA, Meerut) to each individual employees (From one his defense civilian employee whose wife was working in that office of CDA, Meerut). It was further revealed that amount of dividend paid to each employee according to scale of pay being received from the govt exchequers. It became clear to the petitioner that the graded dividends are highly beneficial to the top echelon of the CDA, Meerut. The petitioner made further enquiries on the subject as he was in the impression that Defense Civilians (paid out of Defense Estimates) were being extended CSD facility (Grocery Only) with some additional sale taxes as applicable to the respective states. The information on payment of dividends to each and every serving govt employees made the petitioner thinking on the issue further and studies the system in depth.
b) By this time the petitioner was posted to 1 EME Centre NRS Secunderabad with effect from Dec 2007. In Jun/July 2008, under the provision of RTI Act 2005, the petitioner submitted a query each to the Controller of Defense Accounts (Officers Pune-1) {CDA (O)} & Canteen Stores Department, Adelphi, Mumbai-400020 {CSD, Mumbai} requesting them to state the auth under which CSD, Mumbai was issuing CSD goods to CDA Est/Staff to run their own URCs (Copy of the RTI queries are attached as at Appx A.) CSD, Mumbai promptly responded stating that stores were being issued to URCs run by the CDA Staff/Est under provision of Army Order 19/2003 copy of the reply is att as at Appx B.
c) Armed with the reply recd from CSD, Mumbai the petitioner then asked RTI Cell IHQ of MoD, New Delhi to quote the auth “Existing Policy” which found mentioned at Para 6(f) of Army Order 19/2003 under which Chief of Army Staff (COAS) had authorized CDA Staff/Est to run their own URCs. It is pertinent to mention that Army Order 19/2003 was about COAS’s desire to open more URCs at non-military stations to benefit ESMs(Ex-Service Men) who find it difficult to avail this facility being far away from the URCs at the respective military stations( Extract of AO 32/84& 19/2009 are att as at Appx C). It was transferred to Dir (Q) &CPIO Room No 306, A wing, Sena Bhavan under Section 6(3) of RTI Act 05(Copy of the letter from RTI Cell att as at Appx D.) It took some time and much more persuasion by the petitioner for the Army Authority to finally reply on the existing policy as referred to at para 6(f) of AO 19/2003. It was stated in their draft reply that Army Order under reference pertains to Quarter Master Branch which is the nominated nodal agency of the Board of Control Canteen Services {(BOCCS) wherein Hon’ble Rakish Mantra is the Chairman}to issue all policy instructions/directions/guidelines on behalf of the MOD. Accordingly the Army Order under Reference had been issued on the subject of URCs. It further stated that the facility(less liquor & AFD items)were extended to serving Defense Civilian employees paid out of Defense Estimates as a goodwill gesture for their support to the Defense Services consequent to a decision during the 53rd Meeting of the BOCCS.Relevant extracts of the same was also provided(a copy of the draft reply as well as the extracts of Minutes of Meeting as referred above are att as at Appx E.)
d) According to para 22 of the minutes of Meeting of BOCCS held on 18 Mar 1986 and is quoted -“ ---After a discussion it was brought out that all civilian employees paid from Defense Services Estimates and those employed in the under mentioned Ministry/Departments are permitted to make purchases from Services Canteens:
a) Min of Def, Min of Def(Fin)---.
b) Defense Audit Department.
c) Indian Defense Accounts Services who on deputation to posts other than those in the min of Def(Fin).
d) xxxxxxxxxxxxxxxxxxx
e) Civilian Employees of the Unit/Formation run canteens
f) xxxxxxxxxxxxxxxxxxxxxxx
e) It was still not clear to the petitioner under what auth COAS inserted para 6(f) in Army Order 19/2003 to authorize CDA staff/Est to run their own URCs in the guise of publishing an Army Order to est URCs at the NON-MILITARY stations for the benefit of the ESMs. It is pertinent to note here that CSD Staff/Est are also running their own URCs a clause which even the COAS dared not to include in Army Order 19/2003.
f) As per para 1 under heading General of AO 19/2003 and is quoted “ As per policy URC is given an independent registration number which facilitates it to draw stores from the dependent depot directly”. Para 3 states “ In view of the above , it is felt that a new Army Order may be issued to permit the opening of URCs where no active unit is located”. And as per Para 1 under heading of the same Army order “ the aim of this Army order is to lay down procedure for obtaining sanction (by allotting new registration number) to operate a Unit Run Canteen”.
g) Under heading 1 of Layout of the same Army Order ref above it is the BRIGADE/SUB AREA or Higher Formation Headquarters who are only empowered to sanction opening of Unit Run Canteen of their respective Area. It further states that Unit seeking sanctions will submit applications to HQ BDE/SubArea as per Performa at Appx “A” subject to fulfilling conditions enumerated as at para 2 under heading Layout of Army Order 19/2003( Pl refer Appx , extract of AO 19/2003 already att). The Performa for seeking permission for running a unit run canteen for regular military Unit is as per appx A to Army Order 19/2003 where as for para- military forces under operational command of Army is as per Appx B to AO 19/2003 copy of the each is att as at Appx F. As per Para 3 under heading LAYOUT of AO 19/2003 “After according the necessary sanction the SubArea/Bde/Higher Formation Commanders will forward the application to CSD with a copy to the Unit certifying that the strength indicated comprises those eligible for CSD facilities under the rules. CSD Mumbai will register the Unit Run Canteen and forward a formal intimation to Sub Area/Bde /Higher Formation with a copy to the Unit. It was clear to the petitioner that all the 38 URCs being run by CDA Staff/Est had been sanctioned by the military commanders though none of them come under them in any manner. It was also deduced that each of those 38 URCs being run by CDA Staff/Est had also been issued with registration numbers by CSD Mumbai which is also not under the command and control of military commanders but directly under ministry of Defence.It was therefore necessary for the petitioner to confirm whether the URCs run by CDA Est/Staff had in fact been sanctioned by military commanders at that location and duly registered by General Manager CSD, Mumbai who is the sole auth to issue registration number to any URC.
h) The petitioner set out to find the truth from the CDA est /staff as to whether those URCs been issued with registration numbers by the GM, CSD Mumbai. Controller General of Defense Accounts was kind enough to confirm that No of URCs being run by CDA staff/Est is 38 vide their letter No AN/II/3053/RTI/CPIO/Lt.Col Haridas/C.No 267 dated 14.11.2008 copy att as at Appx G. They further volunteered to add that CDA(O) Pune is running their own URC as per provision of Army Order 584/73( copy of the letter of CGDA even No dated 14/11/2008 att as at Appx H) which simply mean that CDA Est/Staff are running their own URCs since 1973 and did not seek registration under the auth of Army Order 19/2003 which was published only in the year 2003. CGDA further informed the petitioner that registration number of URC of CGDA is 2489 and date of registration was 1974. But it refused to either confirm or provide the registration numbers in respect to other 37 Sub-ordinate CDA Staff/Est running their own URCs and asked the applicant to obtain the same from the CDA Est/Staff on his own. CDA(O) Pune was however kind enough to confirm that their URC is registered as L4048 but refused to disclose the date of registration vide their letter No CSD/GROCERY/GENERAL dated 07/05/09 copy att as at Appx J.
i) It was time to confront GM, CSD Mumbai asking him to provide info on registration Numbers issued to 38 CDA Staff/Est run URCs vide his RTI query 35816/HM/RTI/43/09 dated 16 Feb 2009 addsd to CSD,Mumbai copy att as at Appx K. CSD, Mumbai responded quickly stating that info was being procured from other depot and will be provided on receipt vide their letter No 3/A-3/Legal/rti-33/2621 dated 19 Mar 2009 copy att as at Appx L.In Apr the petitioner was informed that the info requested could not be provided under the provision of Sec 8(1) of RTI Act 2005 vide their letter even No dated 09 Apr 209 copy att as at Appx M.
j) As per DDGCS (Deputy Director General of Canteen Services vide their noting sheet dated att as at Appx(Enclosure No 1/ )Civilians of Defense Audit Department was extended CSD facility based on the decision of BOCCS( Wherein Def Min is the Chairman)held on 18 Mar 1986. It can be safely assumed that such facilities wouldn’t have been already extended as early as from the 1973 in anticipation of such decision being taken by the BOCCS. Para 6(f) of AO 584/73 is the carbon copy of its counterpart as at para 6(f) of AO 19/2003.Further there was no decision taken during that meeting to allow CDA Est/Staff to run their URCs as it is contrary to the mandate of the Canteen Stores Department to provide CSD goods to the troops. It is therefore legitimate to assume there was no authority for the Army Commanders in the channel to sanction running of URCs by the CDA Est/Staff at their respective locations. It is also logical to conclude that GM, CSD Mumbai had erred in granting registration Numbers to URCs being run by CDA Est/Staff based on the recommendation/sanction of the military commanders as CDA Staff /Est does no way comes under their legitimate control as not being a regular military Unit or a para mil outfit temporarily under operational command of the Army.
k) Petitioner wish to put on record the recent replies received from the CSD,Mumbai denying information on the registration Numbers issued to URCs being run by NON-REGULAR MILITARY Units /Est under the provision of AO 19/2003 as AO 584/73 stand superseded. The petitioner has been denied info stating country’s security and sovereignty is at stake citing Sec 8(1)(a)and then “ URC” are not instrumentality of the state hence not covered under RTI Act 2005. It is amply clear that neither Min of Defense , nor Army Auth nor GM CSD, Mumbai has any legitimate auth / mandate to allow CDA Est/Staff to run their own URCs irrespective of whether they are run for the welfare of their employees and not for profits etc etc.
l) The petitioner has approached the Director General of Defense Audit, The Comptroller & Auditor General of India, the BOCCS( wherein Defense Min is the Chairman), the Ministry of Defense, the Fin Minister as well as DAPRG for info Prime Minister of this country. The petitioner has not received any information whatsoever that the matter is being investigated or action already taken to cancel registration of those 38 URCs in particular and others who are also been allowed (namely more than 35 URCs being run by CSD staff/est) to run their own URCs.
m) The question arises here as to how the citizen of this country is being affected if such URCs are being allowed to run on the vacant govt buildings (By relocating govt offices to run such URCs) funded by the so called non-public funds? It will be worth considering here to refer to the performance audit report of the Comptroller & Audit General of India on Canteen Stores Department which is reproduced below verbatim:-
n) It can be seen from the report all is not well in the URC front. But the petitioner is not to find faults in the running of URCs but to question the running of those URCs being run by CDA Est/Staff. It is unfortunate that office of the CAG did not deliberate on this very pertinent issue as the registrations was issued by CSD , Mumbai and CAG was not required to approach any body to examine each and every document related to the applications, recommendations of the Military commanders up the channels, the questionable auth of the Army Order 584/73 as amended by AO 19/2003.
o) Financial burden on the exchequers to provide CSD facility to the troops is directly proportional to the strength of the Armed Forces and the dispersal of the units running their own URCs fulfilling the conditions laid down. Further it is dependent on the numbers of URC in operations as resources to be made available to the CSD auth to procure and issue stores are enormous. As the resources required is directly proportional to the strength of the clienteles it is obvious that Govt of India is profusely bleeding to provide CSD stores to troops plus civilians which is more than the double the troops.
p) Once again the petitioner wish to inform the hon’ble judges that this petition is not intended to question at this juncture expansion of clienteles due to inclusion of civilian employees as refereed at para 12(b) of AO 2/2006 but is determined to question the auth of GM CSD to admit application from the CDA Staff/Est and issue registration numbers to run their own URCs.
q) When confronted with the evidence that CDA est/staff in fact were registered even before BOCCs met and decided to extend CSD facility to Civilian personnel right from the year 1973 supposedly based on AO 584/73 the military auth ( DDGCS to very precise) came out with a letter document issued by Army Headquarters unilaterally deciding to extend CSD facilities to Civilians including the defence audit employees wherein they were allowed to avail csd facility from the service canteen. No document is on record or produced by Min of Def, the CSD, the CDA, Military Commanders at any level to show that CDA Est / Staff are authorized to run their own CSD canteens. It is but natural to dismiss the auth of an Army Order namely Para 6(f) AO 584/73 or 19/2003 to cause such enormous financial burdens to the tax paying citizens of India.
r) As is highlighted not only profits accrued at the URC level a huge sums of money from the profit at the CSD end is also getting transferred to the respective URCs in the grant in aid, QD , reimbursement of transport charges etc etc. Keeping the URCs run by the regular military units for a moment aside to concentrate on the issue at hand it is therefore tax payers money legitimately earned is being transferred to those illegitimately run URCs by the CDA Est/Est. And where the entire profits including the share of profit from the CSD recd go? It is then paid as a dividend to each and every employee of the CDA Est/Staff proportionate to their grade pay.
s) What is wrong if some amount of profits is paid as dividends to the poor employees- could be the next question. Controller of Defense Accountants is supposed to be country’s premier watch dog which is to keep an eye on every penny spent by the ministry of Defense. If that premier agency is allowed to run illegitimate URCs by the dozens occupying more and more govt accommodations to increase more sales vis-a-vis increase profits on sales and as well as the share from the CSD, Mumbai will it retain its sharpness while dealing with wrongful expenditures made by the chiefs of the three services, the heads of the defence departments including the CSD , Mumbai which has issued registration number to felicitate running of URCs by the dozens? The answer is No. And this is the reason why the petitioner wish to bring direct as well as indirect loss ( due to poor quality of audit intended or under duress) to every citizen of this country to the fore. It is not only the question of quantum of direct loss due to such wrongful activities by the CDA Staff/Est in collusion with the big wigs in the Military Est, bureaucrats at the ministry of Defense as well as Min of Fin but appeasement of the country’s watchdog to dilute quality of audit which is many times the direct loss.
t) URCs as Nucleus there are thousands of Shops and restaurants, mini to Super-Markets Big markets have come up on the defence premises. The profits in the forms of rebates, commission & profits being generated by CDA est/staff is astronomical. It is an open call for the employees of the CDA Est /Staff to put more hard work for successful operation of such umpteen numbers of commercial activities instead of scrutinizing financial documents to unearth financial misappropriation which will do no good to their health or even career. A large number of govt accommodations are therefore under seize and being offered to the civilian contractors to run their own shops in and around URC. Thus one illegal sanction is compounding into many such illegalities costing lakhs and crores to the exchequers as at the end quality of audit is the casualty.
u) As per the latest 3 judges bench ruling on the question of status of URC employees vide SC Civil Appeal No 3495 of 2005 decided on 28 Apr 2009, URC are private ventures. If that be so it is to be decided by the hon’ble judges of the Supreme Court whether CSD, Mumbai to close the shop all together as it is nowhere mandated to provide CSD stores to the troops( para --- of the same SC order). Alternatively govt of India can think of auctioning such outlets including URCs being run as private ventures by the highest bidders. The money thus will be enough to fund MNREGA, RTE, RTI, JUDICIARY in addition spending enough for the welfare of troops as is being fondly claimed by even the CDA Est/Staff.
v) It is therefore amply clear there is no mandate for CDA Staff/Est to run their own URCs notwithstanding content of para 6(f) of Army order 19/2003( AO 584 /73 stand superseded) as it had no locus standi. Further issue of registration numbers by the GM , CSD Mumbai to those CDA Est/Staff based on their application duly sanctioned by the formation commanders of the army has no legitimacy. No concrete evidence on record that establishes that people’s mandate was ever obtained to allow CDA Est/Staff to run their own URCs for making profits and then sharing it in the most clandestine manners. It is the worst type of appeasement by the military commanders, the senior bureaucrats in the ministry of Defense to allow CDA Est /Staff to run their own URCs knowing it to be illegal in all aspects. Appeasement of the controllers of Defense Accounts Staff/Est has degenerated the quality of audit of defence account at all levels and is the root cause for MEGA SCAMS in the armed forces as well as in the Defense Department which is a very large monolithic Department.
w) The source of information of the facts pleaded, is based on __documentary evidence, physical verifications, interactions with the colleagues in arm, CAG’s performance reports, Experts’ comments from the social network for the lawyers/practicing advocates and personal experience of 30 years being in the Army.
x) That the petitioner has sent representation in this regard which are listed chronologically below:
I. To CGDA, New Delhi vide letter No dated and reply recd copy att.
II. To CAG New Delhi vide letter No & their reply thereof
III. To CVC online
IV. To min of Defence.online
V. To Min of Fin online
VI. TO DAPRG online.
7. Therefore, it is prayed that this Hon’ble Court may be pleased to pass an interim order to stop the monetary benefits of any kind and man power deployed to run CDA Est/Staff run URCs and pass such further or other orders or direction as this Hon’ble Court may deem fit and proper in the circumstances of the case and thus render justice.
8. Therefore, it is prayed that this Hon’ble Court may be pleased to pass an interim order to appoint a Judicial Commission for enquiry and pass such further or other orders or direction as this Hon’ble Court may deem fit and proper in the circumstances of the case and thus render justice.
9. Therefore, it is prayed that this Hon’ble Court may be pleased to issue a Writ of Mandamus directed to the Union of India, to regulate the functioning of the URCs and pass such further or other orders or direction as this Hon’ble Court may deem fit and proper in the circumstances of the case and thus render justice.
Petitioner in Person.
Place:
Date:
Typed set of documents
Sl No. Date Particulars Page No.
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Guest (Querist) 17 January 2012
Dear All
A few documents relied upon are attached. I am finding difficulties to att documents due to my vintage computer.

Advocate. Arunagiri (Expert) 17 January 2012
Mr.Haridas mandal,

I have received your docs and drafted the above PIL and sent it to you. I have also given some suggestions to improve the draft. (ie.) dont use more abbreviations and statistics. But, you have not done any thing.

Now you are showing the draft sent it to you, you have not even mentioned my name here and not even acknowledged my mail dated 15.01.2012.

I am just seeing the draft which I have sent to you, in this forum.

I am very much unhappy.

Advocate. Arunagiri (Expert) 17 January 2012
Experts, Just I am making public, the communications I had with Mr.Mandal.

On Sun, Jan 15, 2012 at 2:59 PM, Arunagiri Velu
wrote:
> Dear Sir,
> At the outset I would like to appreciate your interest in filing this PIL.
> I have gone through the entire contents and its enclosures. I have modified
> the format and prayers. I am enclosing the same.
> My opinion:-
> 1. The PIL is having numerous abbreviations and statistics. You can
> give the facts of the cases in a nutshell, and enclose all the relevant
> documents as enclosures.
> 2. I prefer you to give a synopsis of the PIL in a single page as
> enclosure.
> 3. You can give a quantum of loss, an approximate figure.
> 4. Approach any advocate who is having a interest in filing PIL,
> redraft everything.
>
> Regards
>
> V.Arunagiri B.Com., B.L., SMP-IIM(Cal)
> Advocate & Vice Chairman - TN (India)
> International Human Rights Association (IHRA) http://ihra.co.in/
> Affiliated by Union Nations & International Bar Association.
>
> Location : Chennai, India
>
> ----- Original Message -----
> From: haridas mandal
> To: Arunagiri Velu
> Cc:
> Sent: Tuesday, 10 January 2012 9:53 AM
> Subject: Re: PIL against running of URCs by CDA
>
> Dear Sir
> I appreciate your kind courtesy and shall wait for your considered opinion.
> If you think there is a big VOID please feel free to comment on that
> aspect also
> Thanks & Regards
> Haridas Mandal
>
> On Tue, Jan 10, 2012 at 8:15 AM, Arunagiri Velu
> wrote:
>> Dear Sir,
>>
>> I was not in station for 5days. I could not sent it as per my schedule. I
>> returned to my home town only yesterday. so, I will send it by sunday. As
>> per your request, if I want to give the opinion / draft from 7 to 11
>> paras,
>> i have to go through the entire history. That is why i would like to take
>> some time.
>>
>> Regards
>>
>> V.Arunagiri B.Com., B.L., SMP-IIM(Cal)
>> Advocate & Vice Chairman - TN (India)
>> International Human Rights Association (IHRA) http://ihra.co.in/
>> Affiliated by Union Nations & International Bar Association.
>>
>> Location : Chennai, India
>>
>> ________________________________
>> From: Arunagiri Velu
>> To: haridas mandal
>> Sent: Monday, 2 January 2012 9:45 PM
>> Subject: Re: PIL against running of URCs by CDA
>>
>> Dear Sir,
>>
>> I have noted the contents. I will give the format of the paras 7 - 11,
>> without touching the merits of the case.
>>
>> I will send you by 4 th or 5th.
>>
>>
>> Regards
>>
>> V.Arunagiri B.Com., B.L., SMP-IIM(Cal)
>> Advocate & Vice Chairman - TN (India)
>> International Human Rights Association (IHRA) http://ihra.co.in/
>> Affiliated by Union Nations & International Bar Association.
>>
>> Location : Chennai, India
>>
>> ----- Original Message -----
>> From: haridas mandal
>> To: humanrights1963
>> Cc:
>> Sent: Monday, 2 January 2012 12:29 AM
>> Subject: PIL against running of URCs by CDA
>>
>> Dear Sir
>> Pl find att the draft PIL along with the relevant supporting documents
>> held by me.
>> I need help in completing para 7 to para 11 of the format.
>> Regards
>> Haridas Mandal

Guest (Querist) 19 January 2012
Dear Sri Arunagiri
The matter is regretted as I failed to mention your contribution. But it was not done with any mischief or motive but to share the info in the forum as promised. I am definitely on the job trying to improve upon further.I sincerely apologize if I have inadvertently touch a raw nerve.
About acknowledging your mail 15.01.11 it was simply because of e-block as I could not download the attachment in google mail but to transfer it to another account and then view in yahoo.mail.
Regards

Guest (Querist) 22 January 2012
Dear All
I am pasting a post for your info and to say I am not alone on the very issue:

"An eye opener for Govt of India - Scandalous Military Canteen Operations
New Delhi : India | Sep 13, 2009 at 6:19 AM PDT BY guardianfoundation
43 VIEWS: 1,012

Dear Sir,
I am furnishing a letter herewith addressed to the Defence Minister of India for the information of general public. This is regarding scandalous operations of 3600 Military Canteens (CSD Canteens) in India. I am glad that based on my representation, the Defence Minister has ordered a Departmental Inquiry through the Defence Secretary. The Director (Q), Ministry of Defence is investigating the case. Consequent to non-cooperation from all three Services, the Inquiry could not be conluded as of date. In the news it is seen that the sitting Ministers are now reducing the expeditures by travelling in economy classes and cancelling abroad trips. First of all, we should learn to utilize the existing resources and save money. For instance, all the 3600 CSD canteens are fetching almost 6300 crores of turnover per annum. Thereby, minimum 300 crores profit is also being energized. Howevr, this is not revealed to Govt of India. These canteens are run as Private Venture of Army as of date. When a quiry through RTI was asked, it was clearly stated that these 3600 CSD canteens are 'Private Ventures of Army' and it has nothing to do with Govt at all. This declaration is very alarming. Had this CSD canteen (Retail) operations been controlled by the Govt and Audited by the CAG, the profit amounting to Rs. 300 Cr would have gone to the Consolidated Fund of India. Presently, this profit of 300 Cr is being used as per the discretion of Local Commanders. This system needs to be cleaned up at the earliest. Why CAG, CVC and Govt of India are not taking a notice of this venture ? Is the booty is shared at all the level ? Where are we heading ? Its shameful and painful indeed.
KP Satheesh, Chairman, The Guardian Foundation (NGO)
June 29, 2009
MOST URGENT
IN THE NATIONAL INTEREST
To,
Shri AK Antony
Honourable Minister of Defence
Government of India
South Block, New Delhi
Sir,
We, The Guardian Foundation, a Government Approved NGO located at National Capital Region, functioning for the benefit of all the citizens of our country, would like to bring forward certain vital and very sensitive information before your good self for perusal. The details projected below are based on official documents & records and therefore, authenticity is fail-safe. We would be grateful if you could kindly go through these details patiently as the issues raised herein are of great concern and warrants expeditious curative action at the Government level. The issue involves thousands of crores and therefore, it might bring disrepute to the Govt of India, sooner or later. Therefore, immediate counteractive action is requested.
Canteen Facilities to Defence Personnel
Introduction : Providing canteen facilities to the Defence Personnel and their families is obligatory on the part of Govt of India. This facility is created as a welfare measure. The entitlement for canteen facility is included in the pay & perks offered to the defence personnel. This could be verified from the career sites of Army, Navy & Air Force.
Canteen Stores Department (Wholesale Outlet) :There are two types of Canteen Services. One is wholesale and the other one is Retail. The wholesale is called 'Canteen Stores Department'. Its
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headquarters is based at Adelphi, Mumbai. There are total 34 CSD Wholesale Depots in India. CSD procure the items directly from the manufacturers and stock it in these Depots. The CSD by itself does not come in direct or daily contact with its end customers. CSD deals only with the Retail Outlets (i.e Unit Run Canteens, in short - URCs).
The turnover of CSD is based on the purchases made by the Retail Outlets. As on 31 Mar 2008, the turnover of CSD was Rs. 5600 Crores as per the official records. Therefore, the net profit of CSD was almost 300 crores during the Financial Year 2007-2008. The sales/turnover, profitability, its distribution etc of CSD are revealed to the Govt of India. Besides, CSD contributes to the Consolidated Fund of India as well ( 50% of the net profit). CSD is a Public Fund and therefore, the books of accounts are maintained as per the guidelines of Govt of Inida. CSD account falls within the purview of The Comptroller & Auditor General of India. CSD functions under the Ministry of Defence. It employs a few serving officers on deputation from the Armed Forces. Though the Department functions on commercial lines, it is also governed and bound by Government rules and financial regulations. There are nearly 3000 items in the CSD inventory.
If we see the organizational structure of CSD, it is revealed that a Serving Defence Officer of the rank of Major General is the Chairman, Board of Administration CSD. Similarly, under Ministry of Defence a Board of Control, Canteen Services (BOCCS) is functioning. The Chairman of BOCCS is Raksha Mantri (RM). Vice Chairman is Rajya Raksha Mantri (RRM). The members are: Defence Secretary, Financial Advisor Ministry of Defence, Quartermaster General (QMG) Army Headquarters etc. Also, a Deputy Directorate General Canteen Services (DDGCS), QMG's Branch is functioning as the Secretariat of the Board of Control.
From the above, it is very evident that the wholesale outlet i.e. CSD is controlled by the Govt of India through various agencies and the earnings out of CSD are fully revealed to the Govt of India. Also CSD claims that “From a humble beginning of Rs. 47 lakhs sales turnover in the year 1948, Canteen Stores Department has grown
to be the largest retail network in India with a record sales of more than Rs. 5600 Cr as on 31 Mar 2008".
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Unit Run Canteens (Retail Outlets): Whereas, in the case of Retail Outlets (i.e Unit Run Canteens (URCs)) the functioning is entirely different. It is revealed that total 3600 URCs are functioning in India. Total turnover of these URCs as on 31 Mar 2008 was almost 5300 crores. Therefore, the net profit emerged was appx Rs. 270 crores. These URCs are permitted to sell only those items which are procured from the CSD Depots (wholesale outlets). These URCs form an important part of CSD supply Chain Management system of indenting, procuring, placing and providing various items in the inventory to the customers. This very fact has been accepted by the CSD and records to that effect are available for reference.
Unlike CSD Depots, the sales/turnover of retail outlets i.e 3600 URCs, amounting to Rs. 5300 crores, are not revealed to the Govt of India. The accounts of URCs are not brought within the purview of C&AG as well. These canteens are managed by all three Defence Services. These retail outlets are treated as private undertakings of Army/Navy & Air Force. The auditing of these outlets are carried out either by Service Officers or appointed Civil Auditors. It is revealed that this in-house auditing is conducted just for the sake of formality.
It is surprised to notice that, despite huge earnings from these 3600 departmental canteens, so far, not even a singe rupee is deposited with the Consolidated Fund of India. Shockingly, the huge profit earned out of this departmental operation is utilized by the officers of all 3 Services as per their discretions in the name of 'Welfare Activities'. At any point of time, utility of profits amounting to hundreds of crores are not revealed to Govt of India, despite these 3600 outlets are Departmental outlets. This is highly irregular and hence, warrants immediate curative action from Govt of India.
If we see the concept of URC, it is created purely for the Departmental purpose. This facility had to be created by the Govt of
India as the entitlement for canteen facilities is a part and parcel of the pay & perks offered to the Defence Personnel (Career sites of all 3 Services refers). In this context, it would be apt if we analyze the Oxford Dictionary meaning of Departmental Canteen. The meaning of word 'Departmental' denotes - Of or belonging to a Department.
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The meaning of 'Canteen' signifies - A restaurant for employees, a shop selling provisions or liquor in a Barrack or Camp. It is surprised to notice that all the Departmental Canteens/Tiffin Rooms etc located in Central Govt Offices are directly under the control of Govt of India since 1991 as per the directions of Apex Court. Also, those Tiffin rooms and Departmental Canteens numbering to almost 2800 are not profit making ventures. These are created for the welfare of employees. Yet, those are controlled by the Govt of India. Whereas, in the case of 3600 Military canteens with an annual turnover of almost 5300 crores, the descriptions and principles of Canteens and Canteen facilities have conveniently been twisted by the Military officials for their personal benefits and did not allow Govt of India to have control over it.
By considering the dictionary meaning as well as the principles of Departmental Canteens, it is very essential to analyze the functioning of the Unit Run Canteens run by the three services (Army, Navy and Air Force). This facility, created by the Govt of India, is not for the profit but solely for the welfare of Troops and their families. However, over a period of time, this has become a pure business venture of Services in the pretext of ‘Welfare’. A departmental canteen which is run by the Units of Army/Air Force/Navy for the welfare of Service Personnel, their families, dependents, civilians paid out of Defence Budget etc is called as Unit Run Canteens (URCs). These canteens sell provisions and liquor items on discounted rates. These canteens can procure only those items which are supplied by its wholesale outlet, i.e CSD. Tax exemptions are applicable to this facility. As on date, these URCs cater to the requirements of 1.60 crore bona-fide customers in India. This facility is undoubtedly specified as an entitlement in the Pay & Perks of Service personnel.
These URCs run by the Defence Services are located in the Units of Army/Air Force/Navy i.e Central Govt offices. Yet, these 3600 canteens are treated as ‘Private undertaking of Army’. These 3600 canteens are solely Governmental/Departmental as these are 'Run by the Services and For the Services' . For instance, Canteens run by the Air Force are named as ' Air Force Canteens'. Similarly, Army run canteens are Army Canteens and so the Navy Canteens. However, as of date, these outlets are not treated as Departmental Canteens. The Defence Services have been treating these 3600 Departmental Canteens illegitimately as their Private Business Venture.
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Since, these outlets have not been taken over by the Govt of India, perhaps due to oversight, the huge profits emerged from these Canteens were/are being utilized by all the 3 Services conveniently. The earnings of these Canteens were/are never declared to Govt of India as the auditing was/is not being carried out by any Govt Agency. Not even a single rupee is contributed to the Consolidated Fund of India.
It is worth noticing the turnover and profits earned out of URCs run by the Defence Services, ever since 1991-92. Details are given below for your perusal:-
Turnover and profitability details of 3600 Departmental Canteens run by the Defence Services since the FY 1991-92 (statistics are calculated based on the turnover figures of CSD)
-----------------------------------------------------------------
FINANCIAL TOTAL 5% PROFIT
YEAR TURNOVER (IN CRORES)
(IN CRORES)
-----------------------------------------------------------------------------
1991-92 939.98 47.00
1992-93 1079.95 54.00
1993-94 1257.16 62.86
1995-06 1513.27 75.66
1996-97 1682.29 84.11
1997-98 1682.29 84.11
1998-99 2549.38 127.47
1999-2000 2754.61 137.73
2000-2001 3115.04 155.75
2001-2002 3452.47 172.62
2002-2003 3913.91 195.70
2003-2004 4167.32 208.37
2004-2005 4416.96 220.85
2005-2006 3872.27 193.61
2006-2007 4456.31 222.82
2007-2008 5221.66 261.08
-------------------------------------------------------------------------
TOTAL 46074.88 2303.74
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From the above statistics, one could easily analyze the potentials of Canteens run by the Defence Services. Presently these massive profits are being utilized by the Defence Officers as per their discretions in the name of 'Welfare'. Literally, till date, the Govt of India could not get the correct picture of the functioning and output of these canteens. As stated earlier, the CSD (wholesale outlet) claims
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to be the ‘Largest Retail Chain Network’ in India. Whereas, it may be seen that CSD solely deals in wholesale operations. Therefore, without the involvement of these 3600 canteens (Retail Outlets), CSD cannot reach to 1.60 crore legitimate customers in India. However, this aspect is conveniently being concealed.
The wholesale outlets (CSD Depots) are fully Governmental/Departmental and therefore, accounts are audited by the Govt Agencies. Ethically, without retail outlets, none of the wholesale outlets of any institution can function. However, this basic theory has been obscured and, these 3600 URCs which are functioning as Retail Outlets for selling CSD items have been treated as Private Undertaking of Army.
In view of the above, it is strongly felt that there is an urgent requirement to stop the exploitation of earnings from Departmental resources. In any case, if this issue is not resolved at the Govt level, we have no option left out but to file a PIL in the Supreme Court in a larger interest by narrating these facts and figures for remedial actions.
All concerned documents are available with us. Some of them are procured through RTI procedures. The rest are available in the concerned site. One can also refer www.csdindia.com to know more about the Wholesale outlet and its functioning. However, there is no site available for the operational details of Canteens (3600 retail outlets). Ultimately, sooner or later, the following points are required to be clarified in the interest of Nation:-
(a) If the wholesale outlets are Governmental/Departmental, why the Retail Outlets for selling CSD items with so much sales/turnover are not controlled by the Govt of India?
(b) Why the sales/turnover details of Retail outlets (URCs) is not revealed to Govt of India?
(c) Despite having the turnover of more than 5300 crore from retail outlets, no contribution to the Consolidated Fund of India is made so far. Reasons need to be clarified.
(d) Despite these URCs are functioning from Army/Navy/Air Force Units, why these outlets are not Departmental and not controlled by the Govt of India? How can Army handle it as a
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Private undertaking? If at all the net income amounting to 250 crores per annum was/is utilized for welfare activities of Defence Personnel, who audit those documents?
(e) Why C & AG is not auditing a Government Department run Retail Business having a turnover of more than 5300 crores per annum? If the wholesale outlets with similar turnover could be within the purview of C & AG, why not these Retail outlets?
We are taking up this issue with your good office for scrutiny so that remedial actions, as deemed fit, could be initiated expeditiously. If Govt of India can exercise control over these 3600 outlets, having the turnover of 5300 crores per annum, the Govt of India would be benefited with minimum 300 crores annually. Presently, these earnings are being consumed by the Defence Services in the name of welfare. It is quite obvious that, if this issue is not resolved by the Govt of India expeditiously, in due course, by considering the gravity of the matter, we fear that this would come out as a scandal which could even adversely affect the reputation of Ministry of Defence / Govt of India.
The excerpts from the 87th Report of Committee on Subordinate Legislation, Parliament of India (Rajya Sabha), presented on 13th September 1991, regarding utilization of canteen profits as per the discretions of local commanders are reproduced herewith for perusal. “Para No. 2.28 : The Committee is of the view that the present arrangement has been worked out only to SIPHON OFF the major chunk of the profits of the Canteens to be placed at the discretion of local commanders. Obviously, such arrangement can hardly be described as satisfactory. It will not be out of place to mention that during the Committee’s visit to Calcutta, the Air Officer Commanding, Eastern Air Command, Calcutta curtly declined to reply the query of the Committee as to for what specific purposes the profits of the Canteen placed at his discretion were being utilized”.
Therefore, it is felt that this is the right time for the Ministry of Defence to step into this issue and take stock of the situation by scrutinizing the functioning of these 3600 departmental outlets and bring out the anomalies to the Govt of India regarding exploitation of huge profits
amounting to hundreds of crores every year by the local commanders of all the three Services.
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Thereafter, the net profits, amounting to hundreds of crores, could be fruitfully utilized for the betterment of all the citizens of this country. If at all, this huge profit is desired by the Defence Services for the welfare activities, in addition to their regular allotment of funds through routine Defence Budget, they should project the requirement meticulously and get the sanction from the Govt and obtain funds from the Consolidated Fund of India. In any case, the present practice of utilizing the profit amounting to hundreds of crores, earned through Departmental Canteens (by calling it as private undertakings) every year, without depositing it in the Consolidated Fund of India, needs to be curbed and if needed be, probed with the intervention of Ministry of Defence, Govt of India. We, therefore, strongly believe that a factual report by the CAG on functioning of these 3600 outlets, run by the Services, would long way deter the misuse of office, exploitation of departmental funds/resources amounting to hundreds of crores every year.
As responsible citizens, we respect the Defence Services to the core but cannot support their deliberate unprofessional, unethical and tainted activities. Hence, time is ripe for an immediate corrective action and therefore, the intervention of Ministry of Defence in this regard is earnestly requested.
We would request for an appointment so that we can produce all the relevant documents before you and discuss the matter in person.
Sir, looking forward to hear from your good office. We have full faith in Ministry of Defence and hence vouch our wholehearted co-operation in all the aspects, in the interest of Nation. Jai Hind.
With due respect and regards,
Sincerely,
For The Guardian Foundation (NGO)
KP Satheesh
Chairman
Post Box No. 151
GB Nagar, Noida
Pin- 201301 NCR India
Residence
L-2, Sector-25, Jalvayu Vihar,Noida-201301
+91-9310442293, +91-9999442293
guardian.ngo@gmail.com
guardianfoundation is based in New Delhi, Delhi, India, and is a Stringer for Allvoices.
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