The Comptroller and Auditor General (CAG) has unearthed irregularities and inefficiencies mainly in the Army’s ordnance factories that have cost the national exchequer an estimated Rs.1,277 crore and led to huge gaps in the country’s war preparedness.
Apart from this there was a huge loss due to diversion and misuse of prime cantonment land to private builders in cities such as Pune, Kandivili, Panchmarhi and Barrackpore. The CAG has also chastised the Indian Navy and the Air Force for inefficiencies and wastage in several of their projects.
While the armed forces have been pulled up for decision deficiencies resulting in losses, the defence ministry has not been spared either by the CAG “for gross mismanagement of land under its possession.”There is striking similarity with the Adarsh housing society scam in Kandivili where 5,166 sq metres belonging to the Central Ordnance Depot ,which was in possession of the army since 1942, was given to a private company for residential purposes on the basis of an irregular no-objection certificate issued by the Defence Estates Officer, Mumbai.
The CAG has pointed out that unauthorised construction and running of 36 hotels on old grant sites at Panchmarhi was not prevented by the Defence Estates Service.