Tuesday 18 September 2012

Financial Allegations: Director NIPER failed to answer in Requisition Meeting on 21st July, 2012.


On March 30 2012 DR. JANARDHAN WAGHMARE asked Minister of CHEMICALS AND FERTILIZERS whether serious allegations of corruption has been made on the website Blog “Biped against Corruption” on the financial and management lapses at National Institute of Pharmaceutical Education and Research (NIPER), Mohali and what action Govt. taken about it. Purebred by the issue, four members of BOG called a requisitioned meeting under the clause 3.1.3 (b) on 28th May, citing the Rajya Sabha question No 1912 and mentioning breakdown of system and procedure at NIPER Mohali. 25 plus specific questions of BOG members related to Financial and Administrative lapses of officiating director K. K. Bhutani were submitted to the Chairman BOG well in advance.However instead of answering the question  officiating director K. K. Bhutani submitted six pages of emotional fib. The only defense he could put up "three tented faculty members defaming NIPER globally. 

Part I 


To,

Chairman BOG,
NIPER

29 June 2012
Dear Dr. Katoch,

I am in receipt of your letter no. Secy(DHR)/BoG/NIPER/2012 dated 21.06.2012 informing the postponement of the Requisition Meeting under para 3.1.3(b) of the NIPER Statute requested on  28th May 2012.  I can understand that due to pre-occupation, the Requisition Meeting is scheduled to be postponed and the new date fixed is 21st  July, 2012.

The essence of requisition is not fulfilled as per the Act in case of delay and the purpose of extra ordinary meeting is lost.  In continuation of my earlier letter dated 17.05.2012. I further emphasize that both writer of the blog should be called in the meeting to present and authenticate the articles published in the blog. Moreover both writer of the blog and responsible persons of Niper administration should be asked to make/reply to charges backed by affidavit along with pre- resignation letters, if any statement is found false, so that the exercise of the BOG becomes an authentic document for the disposal by the Board maintaining neutrality and objectivity.

Please ensure that the background papers, along with certified supporting documents by NIPER Administration are made available to the BOG Members at least seven days in advance before the schedule of Meeting on 21st July, 2012.

GUIDING FACTORS:

Financial Allegations:–
1.     Section 8(g) & 8(h) Powers of the Board:

Consider and pass resolutions on  the annual report, the annual accounts and the budget estimates of the Institute for the next financial year as it thinks fit together with a statement of its development plans; and

(h) do all such thing  as may be necessary, incidental or conducive to the attainment of all or any of the aforesaid powers.

2.   23(3) The Comptroller & Auditor General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller & Auditor General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute.

3. Suggested to be examined under GFR 2005 (Niper should provide copy/book for GFR 2005 to each Member of the BOG):-

Rule 26.  Responsibility of Controlling Officer in respect of Budget allocation:  The duties and responsibilities of a controlling officer in respect of funds placed at his disposal are to ensure:

(i)   that the expenditure does not exceed the budget allocation.
(ii)  that the expenditure is incurred for the purpose for which funds have been provided.
(iii) that the expenditure is incurred in public interest
(iv) that adequate control mechanism is functioning in his department for prevention, detection of errors and irregularities in the financial proceedings of his subordinate offices and to guard against waste and loss of public money, and
(v)  that mechanism or checks contemplated at (iv) above are effectively applied.

Schemes/Programme-wise budget formulation and implementation are guided by Chapter-3 of the aforesaid GFR, wherein following Rules deal with specific subjects.

Rule 46 & 47 deal with allocation of fund.
Rule 52 & 64 deals with control of expenditure and avoiding misappropriation/mis-utilization of allocated funds.
         Rule 59 deals with re-appropriation of allocated funds from one scheme to other.



Sl No
Allegation / Anomalies/ Irregularities presented in the blog “A Biped Against Corruption”
Date of Publication in blog
Rebuttal of NIPER to be sought on the allegations, point-wise  with supporting documents/file  as under to be provided to BOG members, countering the allegation
1
Corruption @NIPER Case One
Misappropriation of 11th Five Year Plan money allotted to NIPER, Mohali, pertaining to project on Intellectual Property Rights (Scheme N17), Project Outlay Rs.2.25 crores and project on new specialization in R&D Management (Scheme N14), Project Outlay Rs.1.60 crores.
WEDNESDAY, 21 SEPTEMBER 2011
1.      Ministry approved project proposal with objective and deliverables for each project.
2.      Year wise money received from ministry for each project.
3.       Proof of achieved objective deliverable for each project
4.      Completion certificate from Principle investigator for each project.
5.      CBI Report send to MINISTRY CVO as alleged in the blog.
2
Corruption @NIPER Case Two
Diversion of 11th five-year plan money. Document obtained by RTI provides evidence.
Evidence:
1. RTI Response from ministry
2.    Agenda Item of finance committee meeting’ held on 25thMarch, 2011
3.    Inter office note and COMPASS printout


Diversion of 11th five-year plan money in 2010-10. What happened to 89 lakhs?
            In the financial year 2010-11 Department of Pharmaceutical released Plan money of Five year plan as per NIPER demand Rs. 10,58,00,000 ( Rs. 8,03,00,000 + Rs. 2,55,00,000) as per the annexure attached.
THURSDAY, 22 SEPTEMBER 2011
&





MONDAY, 12 DECEMBER 2011

1.     Ministry approved project proposal with objective and deliverables for each project.
2.     Latter No 50012/4/2010/NIPER dated 28/6/2010 with annexure.
3.      Agenda for 23 meeting of finance committee dated 25th march 2011 page plan and non plan budget.
4.     Compass Printout for allocation in year 2010-11
5.     Completion certificate from Principle investigator for each project.

3
Corruption @NIPER Case Three
Ex-Dean, Indulged in unauthorized Brokerage/ Commission Sale while holding the positions in the year 2009-10. Utilizing 11th five year plan money, he procured chemicals (two impurity standards) from a local manufacturer, M/S Ind Swift Labs, Panchkula for Rs. 7.5 lacs ( Rs. Seven lacs fifty thousand) and sold the same to the United States Pharmacopeia for Rs. 20.8 lacs (Rs. Twenty lacs eighty thousand), thus carrying a profit of 13.5 lacs on the sale. He has submitted a claim under the disguise of consultancy services of NIPER a share of the profit under advisory as well as research consultancy. From a bare perusal of the facts, it is clear that Ex-Dean has gravely misused his official position and his act may bring disrepute to the stature and reputation of NIPER.
TUESDAY, 27 SEPTEMBER 2011
1.     Original request letter from the company  United States Pharmacopeia
2.     All communication of Professor S. Singh with director for allocation of money.
3.     Purchase order of  impurity standards for manufacturer, M/S Ind Swift Labs.
4.     Consultancy claim papers of Professor Singh.
5.     Minutes of Constancy committee regarding this issue
4
Corruption @NIPER Case Four
Officiating Director, utilizing 11thfive year plan money, printed a book from local Printer Azad Publisher for Rs. 5 lacs ( Rs. Five lacs) and Price of the book printed is Rs 400 and USD 35. In the acknowledgement it is written The grant for the project (GP294) is received from the nodal ministry of Chemical and Fertilizer Govt. of India, Dept. of Pharma-ceuticals. Thus taking Money from two Govt. sources for the same project. From a bare perusal of the facts, it is clear that officiating director has gravely misused his official position and his act may bring disrepute to the stature and reputation of NIPER
WEDNESDAY, 28 SEPTEMBER 2011

1.     All communication of Professor K. K. Bhutani with director for allocation of money.
2.     Purchase order of printing book.
3.     A copy of the book
4.     Expenditure records related to grant for the project (GP294) is received from the nodal ministry of Chemical and Fertilizer Govt. of India
5.     Comments of F&AO regarding this matter
5
How much a Good Samaritan can save for the Institute? At least 1 crore…………………….
Diesel was being purchased at NIPER without following General Finance Rule 2005 of GOI since inception till 2010. A good Samaritan stopped it.
TUESDAY, 4 OCTOBER 2011

1.     Complete minutes of Joint SPC I and SPC II Committee on diesel purchase
2.     Record of Diesel Purchase for 2008 till 2011
3.     Individual record for diesel consumption for TDC, gen Set, incinerator and horticulture
4.     Letter of Mr. Jain, Finance Committee member.
6
Never used facilities @ NIPER
Large number of construction projects was initiated under 11th  five year plan at NIPER. Civil works of many building is completed, but the buildings are standing un utilized either because they are not furnished or no money for equipments/manpower or no money for running/ recurring cost.
A.     Swimming pool A huge Olympic size pool is build under 11th five year plan at NIPER for more then1 crore and the construction is completed all most a year ago. Project investigator of Drugs for most neglected diseases (Scheme N18) under the 11th five year plan (2007-12) says that part of the money received for the project was diverted to fund the escalated construction cost of swimming pool.
B. Community center: The same story repeated again for Community center  A odd shaped building with big cover area and less utilizable space is built utilizing approximately 40 lakhs.
MONDAY, 10 OCTOBER 2011

1.     Ministry approved project proposal with budget, and timeline for each project.
2.     Complete tender document with criterion for selection of contractor.
3.     Cost overrun and approval letter for cost overrun for each project.
4.     Year wise money received from ministry for each project.
5.      Completion certificate from contractor for each project.
6.     Record of use for each project with date.
7
CAG unearthed shoddy state of education @NIPER
Due to nepotism, mis-management and administrative malice, the education took backseat at NIPER. The condition is so bad that even CAG wrote a para about it in 2009-10 report.
The following information may be furnished to audit:-
Reasons for not filling the vacant posts through the intake of students had increased by 66.82 percent compared to year 2009-10 may be intimated.
The manner in which NIPER was imparting education to the students in the absence of adequate staff may be intimated.
FRIDAY, 21 OCTOBER 2011

1.     CAG report of the years 2009-10
2.     NIPER response in detail for each para/ objection raised by CAG
3.      CAG response to each explanation
4.     Final out-come whether para sustained or deleted
5.     Remedial measure taken by NIPER where CAG wrote para sustained
8
Misappropriation of 607.26 lakh @NIPER due to violation of BOG direction.

CAG reported Loss/ misappropriation of 607.26 lakh Exchequer money during the year 2009-10 alone.

MONDAY, 31 OCTOBER 2011

1.      CAG report of the years 2009-10
2.      NIPER response in detail for each para/ objection raised by CAG
3.       CAG response to each explanation
4.      Final out come whether para sustained or deleted
5.      Remedial measure taken by NIPER where CAG wrote para sustained
9
NIPER cheated it's own scientists
Tanasahi achieved new height @NIPER
NIPER claimed arrear money from DST in the name of 10 scientist/SRF; did not pay all the people, used the money for some other unknown purpose (pocket?), submitted the utilization certificate indicating that the money is used for the purpose it was given by DST. Few deprived people failed to get their due from NIPER now thinking on going through legal route to retrieve their money.
TUESDAY, 1 NOVEMBER 2011

1.      Copies of legal notice received By NIPER in last one year
2.      Claim letter send to DST by NIPER
3.      Copy of the sanction and approval letter received by NIPER from DST regarding arrear money.
4.      Copy of the salary slip of the employees to whom the arrear money is distributed.
10
Time to act; time to act decisively to reestablish NIPER’s old Glory
It is pertinent to mention that all cases of NIPER is duly informed through Proper channel to BOG by Dr. Roy, Dr. Bansal and Dr. Neeraj Kumar in last three months after the new BOG is formed and to Ministry and Visitor NIPER (The President of India) since Nov 2009.
The entire documentary evidences along with CAG report is also submitted to Chairman BOG on 14th Oct 2011. Now onus is on BOG to act upon evidences and chart the right path for “Institute of National Importance”.
TUESDAY, 29 NOVEMBER 2011

1.      Copies of formal complain  to BOG by Dr. Nilanjan Roy, Dr. Bansal and Dr. Neeraj Kumar and dr. Animesh Roy
2.      Copies of  documentary evidences along with CAG report is also submitted to Chairman BOG on 14th Oct 2011.
11
"Irregular purchase of Transmission Electron Microscope (TEM) valuing Rs. 432.98 lakh" CAG
The Department of Science and Technology, Ministry of Science and Technology, Govt. of India sanctioned first installment of 250.00 lakh Single  Quotation Transmission Electron Microscope (TEM) was much higher. Institute took up the case with GOi for release of additional grant of 1.92 crore. GOI sanctioned 92.13 lakh. Rest of the cost of the equipment approx 1 crore was met by NIPER from its own sources. Equipment was purchased from M/s EFI Company Europe through their agent M/s Analytical equipment Pvt. Ltd, Mumbai,
MONDAY, 2 JANUARY 2012
1.      Complete file of electron microscope purchase with tender document and comparative of the bidders
2.      Total DBT funding received
3.      Reason, approval letter for addition funding NIPER admitted to fund the purchase of equipment from its own sources and detailed of sources from which the equipment was funded.
4.      Comments of CAG about this purchase, NIPER response  and final out come of CAG objection
5.      What benefits the institute has received since the inception of this TEM laboratory.
12
F&AO of NIPER; Root cause of all corruption?
Finance and accounts officer (F&AO) of any organization is a very responsible post and suppose to work a guide of whole administration based on General Finance Rule, 2005 (GFR2005) of Govt. of India. However in the case of NIPER F&AO failed to perform his duties lied to CPIO (RTI) and other statutory committees causing huge loss to exchequer money, and causing initiation of litigation.

SUNDAY, 4 MARCH 2012

Written statement of F& AO, NIPER Regarding the following cases
1.      DST Arrear Case
2.      Electron microscope purchase
3.      11th five year plan money distribution
4.      Loss of 49 lakhs interest in FD
5.      On paras of 2009- 2010 CAG report

13
TDC AT NIPER, Mohali USED AS MILKING COW, NOTHING ELSE
CAG (DPC Act 1971) Audit and inspection report on the account of NIPER for the year 2010-11 obtained by RTI. Relevant extracts irregularity para 3 are as under:
NIPER worked out monthly expenses for running and maintenance to Rs. 12.60 for the period from 15th july 2008 to 14th July 2009 against which the usage charge were fixed 14.85 per month. (for a 15 crore facility only 2.25 lakh per month income?)
TUESDAY, 1 MAY 2012
1.      Copy of all MOU with Ranbaxy & expenditure/utilisation of 319 lakh for technological development centre under 11th Five Year Plan where Rs. 569 lakhs were approved by Planning Commission to benefit to the agreement holder under pretext of upgradation of TDC.
2.      Account statement of salary of all staff of TDC
3.      Date wide details of payment received fro Ranbaxy
4.      All para of CAG pertaining to TDC
6.      NIPER response in detail for each para/ objection raised by CAG
7.       CAG response to each explanation
8.      Final out come whether para sustained or deleted
9.      Remedial measure taken by NIPER where CAG wrote para sustained
10.  Relevant extracts  of the Finance Committee Minutes in respect of TDC.
11.  Costing data sheet on the basis of which the contract value was calculated
12.  Under which rule of NIPER Act & Statute lease of equipment is allowed 

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