March 26, 2002

'33'

CLARIFICATION ON ACTION TAKEN ON THE CVC REPORT

    Attention of the Ministry of Defence has been drawn to a news-report appearing in a daily dated 26th March 2002 published from New Delhi entitled 'Dubious' Defence Deals: George gets a polite reminder'. The story is misleading and the facts are given below to put the record straight.

    It is correct that CVC had written to the Defence Minister on 20th February 2002 inviting his attention towards expeditious action on the observations made by CVC in his final Report on the Defence Deals. The Defence Minister promptly replied to the CVC's letter on 23rd February 2002 assuring him that the desired action was being taken.

    It may be clarified that the Ministry of Defence had suo-moto referred about 120 cases pertaining to contracts of more than Rs. 75 crores, as well as, certain cases relating to allegations made by Members of Parliament and certain other cases pertaining to
C&AG Audit Paras to the CVC. CVC had perused the files and returned one third of these files after perusal, without recommending any action. Out of the remaining cases, Court of Enquiry has been ordered in four cases and cases were closed in five other cases, in consultation with the CVC. Action in respect of the remaining cases has also been initiated. There are certain other observations of the CVC, which are purely advisory in nature and have been noted for incorporation in the revised Procurement Policy, which is on the anvil.