Lok Sabha Question No. 3862 (UNSTARRED), answered on 2015-08-12
Subject: Irregularities in Purchases
Ministry: PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
Asked by: SUBHASH RAMRAO BHAMRE

GOVERNMENT OF INDIA

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS

DEPARTMENT OF PERSONNEL AND TRAINING

**LOK SABHA**

**UNSTARRED QUESTION NO. 3862**

(TO BE ANSWERED ON 12.08.2015)

**IRREGULARITIES IN PURCHASES**

3862. DR. SUBHASH BHAMRE:

Will the PRIME MINISTER be pleased to state:

(a) 	whether the establishments of the Government are allowed to purchase items worth upto Rs. 1 lakh from Kendriya Bhandar (KB)/National Cooperative Consumers' Federation (NCCF) without inviting tenders;

(b) 	if so, the details thereof and the reasons therefor;

(c) 	whether the Government has received any complaints regarding alleged irregularities in the purchase of items without inviting tenders as a special dispensation and if so, the details thereof and the action taken/proposed to be taken thereon during the last three years, Ministry/Department-wise;

(d) 	whether the Government proposes to withdraw the special dispensation given for purchase of items from NCCF and KB and if so, the details thereof and if not, the reasons therefor; and

(e) 	the corrective measures taken/being taken by the Government in this regard?

**ANSWER**

Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office. (DR. JITENDRA SINGH)

(a)  & (b):  No Madame. The dispensation provided vide Office Memorandum dated 05/07/2007 in respect of Ministries/Departments to make local purchase at their discretion of all items for office consumption upto Rs.1.00 lakh on each occasion directly from Kendriya Bhandar(KB)/National Consumer Cooperative Federation(NCCF)  without calling for quotations has since been withdrawn w.e.f. 01.04.2015.

(c):    The information is not maintained centrally. However, CBI has informed that two complaints have registered in connection with the irregularities in purchase of items without inviting tender in Kendriya Bhandar/ National Cooperative Consumers Federation (NCCF) during the last three years i.e 2012, 2013, 2014 and 2015 (upto 30.06.15). The details of these complaints are enclosed as Annexure-A.

(d) & (e):    Dispensation in respect of all Central Government Departments, their attached and subordinate offices and other organizations financed and/or controlled by them in making local purchases of stationary and other items from Kendriya Bhandar (KB)/ National Co-operative Consumers Federations (NCCF) granted vide OM dated 05.07.2007 was valid upto 31.03.2015.

The same has since been withdrawn w.e.f. 1.04.2015.

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**ANNEXURE-A**

|   **SL. No.** | **Complaint No. &  Date of Registration**         | **Name, Department, Designation of suspect officer**                            | **Allegations in Brief**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **Present Status**                                                                                                                                                                                                                                                                         |
|---------------|-------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             1 | 2                                                     | 3                                                                               | 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 5                                                                                                                                                                                                                                                                                          |
|             1 | CRCHG2013A0010  Dtd. 17.04.2013  **(ACB Chandigarh)** | Unknown officers/officials of NCCF, Chandigarh and NAFED Ludhiana               | Some officers/officials of NCCF, Regional Office, Chandigarh and NAFED, Ludhiana, misrepresented about the availability of certified wheat seeds to HSDC, based on which, HSDC did not float short term tenders for supply of 1 lac quintals of certified wheat seeds, for sales to farmers of Haryana, in Nov. 2010. HSDC purchased seeds from NCCF and NAFED at inflated rates for Rs. 2050/- per quintal, which was based on misrepresentation made by NCCF and NAFED, even though sale rates ranged between Rs. 1635/- and Rs. 1800/- per quintal at that time. | PECHG2013A0003 Registered on 18.10.2003.  A self contained note was sent to The Chief Secretary, Govt. of Haryana, Chandigarh, the Chairman, NAFED and the Joint Secretary(Seeds), Min. of Agriculture, Govt. of India, Deptt. of Agriculture & Co-operation, Krshi Bhawan, New Delhi. |
|             2 | CO.37/13  Dt.11.9.13  (ACB Patna)                     | Manager, Kendriya Bhandar, Govt. of India, Rajeshwar Complex, Kankarbagh,Patna. | Irregularities in purchasing of stationary articles and misuse of official position.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Complaint has been closed on 31.12.13.                                                                                                                                                                                                                                                     |

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