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'Serious Fraud' probe ordered in ex-servicemen schemes

Last Updated 25 September 2011, 10:34 IST

The decision to seek the assistance of Fraud Investigation Office under Corporate Affairs Ministry was taken after an inhouse inquiry report suggested that DGR officials flouted norms and guidelines of various schemes and were involved in administrative improprieties, Defence Ministry spokesperson Sitanshu Kar said here.

"Defence Ministry has decided to request Ministry of Corporate Affairs to hand over to SFIO the case relating to a private company Ex-Servicemen Airlink Transport Services Pvt Ltd (EATS) for further investigation," he said.

To ensure transparency in functioning of DGR office, Defence Minister Antony has also initiated a series of measures after the inquiry found substance in allegations regarding subletting of security agencies and obtaining multiple benefits by few ex-servicemen officers, Kar said.

"The essence of inquiry and its analysis is that in the last couple of years efforts have been made to introduce transparency in the manner of the functioning of DGR office," he said.
DGR is under the Department of Ex-Servicemen Welfare, which is responsible for training and rehabilitation of retired defence personnel and ex-servicemen through various self employment schemes.

One of these schemes relate to providing security services to central public sector undertakings through security agencies run by ex-servicemen.

The inquiry into the matter was conducted by a Joint Secretary-level officer and was submitted to the Defence Minister earlier this month.

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(Published 25 September 2011, 10:34 IST)

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