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Public funds - non -public fund

Guest (Querist) 01 October 2011 This query is : Resolved 
In a answer to a starred question in the LOKSABHA Mr Anthoni, Hon'ble Defence Minister has said :
That Unit Run Canteens ( URCs) are run by the armed forces with non-public funds and hence not being audited either by Defence Audit Auth or by the CAG.
CAG in its recent observation during audit of Canteen Stores Departments has questioned the decision of the Defence Ministry and insisting its audit.
My question is what is the definition of PUBLIC FUNDS, non-public funds , Private funds as well as Regimental Funds in specific relation to :
Funds alloted to armed forces from the CFI directly.

Profits generated from sales of CSD stores through URCs run by regular military units as well as Non-Military est?

Rebates/ Pagri /revenues received from civil contractors who are allowed to run their commercial activities on the defence held govt premises/ Accomodations?

Revenues / profits accrued from sale of non-CSD goods through shops and enterprises, nurseries and gardening, by tilling farm lands etc etc?

Can all those mentioned above for which all officers of the armed forces are custodians as well as accountable could be outside the purview of the RTI Act 2005?
Raj Kumar Makkad (Expert) 01 October 2011
Visit the following link for the satisfaction of your query:

http://90paisa.blogspot.com/2008/10/csd-unit-run-canteen-rights-of-csd.html
Guest (Querist) 01 October 2011
The link was not related to my query.Anyway thanks for the info that the word Troops has been replaced by customers which is why CSD facility is the most abused facility today.
Guest (Expert) 07 October 2011
Public funds are the funds created for official expenditure of the offices of the Union of India or the State, like the Consolodated Fund of india or the State.

On the other hand, non-public fund is that, which is created out of soft loans or earnings by accummulation of profits out of business activities of any organisation. Since Unit-run canteens are meant for the welfare of the armed forces they are offered recoverable soft loans by the concerned Units just to continue with the activity of purchase of goods for supply to the jawans on concessional rates (MRP less Excise Duty) and to repay their loans out of their income gradually. Appropriation of such funds is not treated as expenditure for official purposes out of the public fund.
Guest (Querist) 07 October 2011
Whole thing is messy.All armed forces personnel are enrolled to do govt work. If they are busy raising soft loans from the Canteen Stores Department, a solely owned govt of India Enterprises; If they run canteens , converts govt accomodations for sophisticated weaponry into commercial complex and such commercial activities as a private person when they will do their primary duty?
Secondly Soft loans are recd from the consolidated funds of india at an impossibly low interest rates. Secondly those privately run Canteens selling CSD stores then receive rebates from the govt of India in the form of QD. Its simply a loot and scoot . Sooner they are reigned in is better for this country . It will save this country from lots of mega defence scams and scandals.


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