An army probe issues arrest warrants for two generals as it discovers discrepancies in a deal with a private firm. Result: No procurement of sensitive spying equipment.
By Sandeep Unnithan
|ongoing army investigation has revealed the complicity of army officials and irregularities in a contract with a private sector software firm. The inquiry took a dramatic turn on June 5 this year, when a military court issued arrest warrants for former director general of military intelligence Lt General B.S. Thakur and Major General D.N. Asija (retired) of the Directorate of Military|
Intelligence for refusing to join a two- year-old probe into irregularities in military intelligence procurements.
The probe has simmered within the army for over two years. The army ordered a Court of Inquiry (Col) in 2013 after military intelligence officials complained about irregularities in the procurement of satellite interpretation equipment from a Mumbai- based private sector software firm, Rolta India Limited.
The Ministry of Defence has placed
on hold a Rs 165-crore contract with Rolta to supply 27 Photogrammetry and Geographic Information Systems (GIS) to the army because of these complaints. The contract was to have been signed in 2011 but was stalled after the controversy broke out that year. The slow-moving probe has paralysed the army’s procurement of newer GI systems critical for processing spy imagery, say army officials. The
A ROLTA DISPLAY STALL AT THE DEFEXPO 2012 IN NEW DELHI
THE SLOW-MOVING PROBE HAS PARALYSED THE INDIAN ARMY’S
PROCUREMENT OF EQUIPMENT CRITICAL TO PROCESS SPY IMAGERY.
The Col is looking into charges of irregularities in a Rs 165-crore deal for 27 spy satellite processing systems for military intelligence
army’s requirement for the systems is meanwhile mounting as old systems are in need of replacement.
Major General Asija’s refusal to join the probe, however, is curious given that he was one of the officers who recommended an inquiry in 2011. The inquiry conducted in Sena Bhawan by a brigadier-ranked officer has, so far, established close links between the Directorate of Military Intelligence (MI) and Rolta.
The Col has not established any financial wrongdoing because the contract did not go through. It has, however, found certain procedural deviations where the Directorate of MI insisted, reportedly on specious grounds, that procuring systems from new vendors would create problems of interoperability and integration.
Lt General Thakur, who was DGMI between 2011 and 2013, let irregularities prevail in the directorate, army officials told india today. Lt General Thakur and Major General Asija did not return calls or messages seeking comment. Responding to a questionnaire from india today, a Rolta spokesperson clarified that the company was not an accused in the army Col. The company strongly denied contractual and financial discrepancies in annual maintenance contracts and denied holding back contractual obligations. “Rolta provides comprehensive maintenance services for integrated systems, as contracted,” said M.K.
Govind, senior divisional director, corporate marketing and sales, Rolta India Limited.
THE WHISTLEBLOWING SPOOK The controversy began in 2011 when a whistleblower in the MI directorate
IN THE DOCK
LTGEN B.S. THAKUR
Was director general military intelligence between 2011-2013 when the irregularities came to light. Served arrest warrant for not joining inquiry.
MAJOR GENERAL D.N. ASIJA
Was ADG military intelligence under Lt Gen Thakur, but one of the officers who ordered a probe. Served arrest warrant for not joining the inquiry.
detected irregularities in a Rs 165- crore contract for purchasing 27 mobile and static photogrammetry and GIS systems. The systems—for command and truck-mounted units for mobile formations—are used to create three-dimensional images of ground data collected from spy satellites, drones and aircraft. These 3D images are laid over GIS software to create a digital library of military targets.
The case came to light quite by accident. Colonel Sujeet Banerjee was posted as officiating director of the Mi’s sensitive 17th directorate (MI-17) that dealt exclusively with spy imagery. He was a stand-in for Colonel M.K. Chakraborty who was away on a month’s leave. The directorate is the nodal agency for processing satellite photographs from various commands and sends it down to various army formations. MI-17 also receives spy imagery from the National Technical Research Organisation (NTRO) and the Defence Image Processing and Analysis Centre (DIPAC) within the Defence Intelligence Agency.
A majority of these imagery tasks were carried out by systems the army had procured for over Rs 500 crore from Rolta between 1996 and 2008. Colonel Banerjee found discrepancies in the annual maintenance contracts the army had signed with the firm. The software had been purchased from three foreign firms—Oracle,
Repeated warning signs were ignored by top army officers until 2011 when a probe was ordered
Whistleblower in MI-17 reports irregularities in equipment supplied by Rolta. The Rs 165-crore contract with the army is put on hold.
Ml finds grounds for a Col,
but Director General, Ml, Lt
General B.S.Thakur does not
order it. Three whistleblowers
posted out of the directorate.
Col issues arrest warrants for Lt General B.S.Thakur and Major General D.N. Asijafor not deposing.
ROLTA SAYS IT IS
NOT AN ACCUSED
IN THE ARMY Col,
IT DENIES CONTRAC-
Intergraph and Bentley—and supplied to the army by Rolta.
Over 70 such systems were purchased for the Indian Army and distributed amongst specially created Imagery Interpretation feams (IITs) of the army among divisions, corps and commands to interpret satellite imagery and pass it on to tactical formations.
The firm, however, did not offer ‘software upgrades and updates’ as mentioned in the 1996 contract. From 2008, the annual maintenance contracts were reworded only to include the word ‘updates’. Colonel Banerjee suspected this was the case because the firm did not own the original software.
In 2009, the army had initiated the purchase of a fresh batch of GI systems to replace the older ones bought in 1998. It, however, insisted that the systems not be floated as a global tender and be purchased as a repeat order from Rolta. This meant that it would not have to follow the normal procedures of a fresh contract. The army insisted on singlevendor procurement despite the Defence Acquisition Council suggesting otherwise in 2010.
An MoD Cost Negotiation Committee noted that the company had now stamped its name on all the products. This was a marked change from a 2004 contract where Rolta was only the distributor for US-supplied software. Army officials say Colonel Banerjee made several futile attempts to alert Colonel M.K Chakraborty of the irregularities. In March 2011, Colonel Banerjee finally complained against Colonel Chakraborty to his seniors in the MI directorate. His superior officers Major General Asija, the then additional director general, MI (B) and Brigadier R. Chibber, additional director general in-charge of technical equipment in the MI, recommended a Col. The two officers had by then carried out extensive investigations with all the officers of MI-17 about the dubious software upgrades to establish that there were indeed grounds for a formal Col.
The whiff of a scandal would have immediately led to an inquiry,
particularly as it was flagged by two senior MI officers who put their complaint down in writing. However, the DGMI Lt General Thakur did not order a probe. What he did next only piqued the interest of the officials handling the current inquiry. In August 2011, Lt General Thakur verbally asked the Military Secretary’s branch to post three officers out of the Directorate of MI—the whistleblower Colonel Banerjee, Brigadier Chibber and a third officer in MI-17, Lt Colonel Sandeep Ahlawat, who had red-flagged the aberrations. All three officers were posted out of the directorate one month apart and sent to inconsequential appointments outside Delhi. Colonel Banerjee was posted to the Army Welfare Housing Organisation, a career dead-end. The matter seemed buried.
Rolta’s sale of a Rs 165-crore contract for purchasing sensitive spy imaging systems cleared in 2010 did not go through.
DEATH AND RESURRECTION In January 2013, another military intelligence officer detected anomalies in the Rolta contracts. Major Shubda Naik, an intelligence corps officer posted in MI-17, wrote to then army chief General Bikram Singh about the discrepancies. On July 29, 2013, the army ordered a Col headed by Brigadier Ashwani Kumar. The key witness for the prosecution was going to be the original whistleblower, Colonel Banerjee. This was when matters took another curious turn. On January 26, 2014, just a day before he was to depose before the Board of Inquiry, Colonel Banerjee was found dead in his room in the United Services Institution (USI) in south Delhi.
A post-mortem revealed the cause of death to be heart attack. The inquiry was hobbled by his absence but continued as the court examined other officials who had pointed out irregularities. The Col is now over two years old. Unusual because army COIs don’t last more than six months. But then, few cases in the army have seen not one but three whistleblowers stand up and report irregularities. The delayed probe has stalled the
army’s attempt to replace its 1990s vintage imagery interpretation systems that one officer terms “junk”. The blocked procurement pipeline is believed to now include a requirement for over 40 such systems, a glaring capability gap that has been repeatedly flagged by army commanders in internal conferences.
One reason being given for the Col’s slow progress is the fact that Lt General Thakur, Major General Asija simply refused to join the probe. This left the court with no option but to issue arrest warrants against them. The warrants are with the district magistrates in Gurgaon and Noida where the two officers live after their retirement. The officers have so far refused to respond to the Col which was reconvened on June 23. Army officers say a fresh set of arrest warrants will now be served on them.
PAST IMPERFECT This is not Rolta’s first brush with controversy. In an April 2015 report, a California-based capital markets research firm, Glaucus Research Group, noted that “preponderance of evidence suggests that the vast majority of Rolta’s reported capital expenditures have been fabricated”. The report was an assessment of $500 million of junk bonds issued in the US market by Rolta’s Delaware subsidiary between 2013 and 2014 which had attracted inves- »- tors by offering tempting yields.
The group said that the IT firm’s reported spending in India was “disappearing into phantom prototypes, mysterious construction projects and computer systems of questionable authenticity and utility”.
It also flagged the fact that an ongoing Ministry of Defence inquiry had been omitted from its bond prospectuses, “which in our view is a material omission because the scandal could jeopardise future contracts with the Indian government. These incidents are further evidence of the lack of transparency or accountability at Rolta. ” Rolta has contested Glaucus’ findings, terming them “baseless”,
riddled with “factual errors” and “inaccuracies”. It referred to news reports cited by Glaucus of the defence ministry inquiry as making no express allegation or conclusion against the company or its officials. Accordingly, it is just an attempt to falsely imply the company’s complicity and impact its reputation, Rolta claimed.
The Col has photographs that show Colonel Chakraborty, director MI-17 and Colonel Banerjee’s boss, on a private holiday with Rolta executives in 2009. Colonel Chakraborty did not return calls for comment.
Preliminary findings of the army Col seem to agree with what the MI
|MI-17 DIRECTOR COLONEL M.K. CHAKRABORTY WITH ROLTA EXECUTIVES ON A HOLIDAY IN THAILAND, IN 2009
whistleblowers had said in their written complaints since 2011. The Col established contractual and financial discrepancies in the annual maintenance contracts concluded with Rolta after December 2008. Original contracts with Intergraph and Bentley and other third party software updates and upgrades were not provided by Rolta despite the mandate for the supplier in the original contract. Rolta merged the costs of hardware and software in 2008, making it difficult for the army to work out the loss to the exchequer due to the denial of software upgrades, officials familiar
with the Col say.
Company officials, however, strongly denied these findings. “Rolta has been providing comprehensive maintenance services to the Indian Army for two decades now and army users are completely satisfied with these services. There are no contractual and financial discrepancies in any annual maintenance contract with Rolta. In fact, army users have issued hundreds of letters appreciating Rolta support services,” a company spokesperson said.
Rolta refutes it had withheld any deliverable that had been contracted for, a constant charge made by several army whistleblowers. “Rolta provides comprehensive maintenance services for integrated systems, as contracted,” the spokesperson told india today in a written response. “Rolta has met and exceeded all its contractual commitments, including supply of all software updates and upgrades. We categorically deny that Rolta has withheld or not provided any deliverable that has been contracted for.”
Responding to charges that it had pushed its software onto the Indian Army in the absence of competition from other software developers, the company spokesperson said that Rolta had followed due process in obtaining all required sanctions, its software had been tested by army users before induction by conducting an extensive predispatch inspection and a joint receipt inspection, as per contractual provisions. “This software has been in sustained use at army formations for the last six-plus years and the company has received numerous appreciation letters from army user sites all over the country, which stand testimony to the quality of Rolta software and support services.”
As the court of inquiry hurtles towards a long-awaited conclusion, the embattled whistleblowers in Military Intelligence hope to have proved them wrong.
Follow the writer on Twitter @SandeepUnnithan
By Amitabh Srivastava
frame with the photograph of a uniformed Pervez Musharraf, shaking hands with a smiling, kurta-clad Lalu Prasad is gathering cobwebs on the wall of a small room at 10, Circular Road in Patna. On the picture is the former Pakistani president’s handwritten compliments to the former chief minister of Bihar—“To an artist of a politician, Laloo Saheb.” The sprawling bungalow in the state capital’s uber-plush locality is allotted to Lalu’s wife Rabri Devi. Between them, the couple administered— many say ruled—Bihar for 15 years, starting in 1990.
It’s 11 a.m. on a particularly humid late June morning, and the “artist” has retired for a siesta at his baithak (meeting room). Having attended to some visitors since 8.30 a.m., Lalu, his hangers-on say, would rest for a couple of hours. There’s little sign of anyone here ruling any place outside the bungalow—at least for now. The doors of the baithak are open, and the air conditioner’s wheezing noise sounds almost like the state of affairs Lalu’s once-powerful party, the Rashtriya Janata Dal (RJD), is in today.
The contrast could not have been sharper in another bungalow a few kilometres away in Danapur, on the western outskirts of Patna. There are a dozen computers and half-a-dozen
people in six cubicles are frenetically punching away on the keyboards on the first-floor office space in Lalu Prasad’s farmhouse. This is the working office of Tej Pratap Yadav, 27, the elder of Lalu’s two sons, who seems to be emerging as the chosen one to take up the mantle from his battle- weary father. Inside his “war room”, Tej Pratap smiles after reading out the text that Anu Pandey, 22, has juxtaposed with a picture of Prime Minister Narendra Modi. It reads: “When will I get my Rs 15 lakh you had promised on poll eve?”
Hands on waist, the grin widens. “Good work. Now post it through all our Facebook accounts, and don’t forget tagging as many users as you can,”
Beneath the veneer of calm, Lhasa still remains a city divided despite Beijing’s grand development plans. And a silent prayer still goes out for the Dalai Lama.
uniforms, the Chinese military’s firefighters patrolled the square. Standing watch from a corner was a People’s Armed Police officer in uniform.
That tourists outnumber worshippers in the halls of the Potala today is a result of China’s grand project in Tibet: a project of remaking Tibet in Beijing’s image. China says it is investing billions to uplift one of the country’s most underdeveloped regions. This investment is indeed evident: newly paved expressways sprout from Lhasa in every direction; roads that rim all the way to the Indian border in Sikkim are in immaculate condition, enabling a
TIBET IN NUMBERS
Tibet Autonomous Region population
Han Chinese population of Tibet
Floating Han Chinese population in 2000
The Chinese government’s investment in Tibet
Self-immolation protests in Tibetan areas since 2009
600-km journey in less than half a day; and Lhasa is connected to the Chinese hinterland with a geography-defying multibillion-dollar railway that cuts through “the roof of the world”—all unthinkable two decades ago.
Yet, interviews during a recent visit to Lhasa suggest that Beijing’s development efforts have not convinced many Tibetans, with the unresolved question of the Dalai Lama continuing to cast a long shadow. While many Tibetans continue to revere the Dalai Lama as their guiding spiritual leader, Beijing, in public statements, continues to vilify him as “a splittist”, banning images of
<%> COVER STORY
a popular figure. By doing so, Beijing appears to be undermining the goodwill it may have otherwise engendered through its ambitious development plans for Tibet.
Underlining the Dalai Lama’s continued prominence, in recent days, Tibetans have defied restrictions and threats of jail to hold quiet celebrations to mark his 80th birthday, which is on July 6 (or June 21 in the Tibetan calendar), in many places in Tibet and nearby Gansu and Sichuan, as photographs made available show. As one Lhasa resident said, “For us, the Dalai Lama is most important.” Chinese officials dismiss the following for the Dalai Lama as a vestige of Tibet’s old “feudal” past. Yet in interviews, even younger Tibetans appeared just as proud of their religious and cultural history. Two young Tibetans said they planned to hold private commemorations for the birthday “even if we cannot do anything in public”.
At the Potala, there will be no commemorations on July 6, even if the 14th Dalai Lama’s presence still hangs heavily. As one Tibetan tour guide told a group of tourists one recent morning, “The greatest Dalai Lamas were the fifth, who made the Potala as it stands today, and the 13th.” What of his successor? “We think he is just as great,” the guide later said quietly with a smile, “but we cannot talk about him.” Since February 2009,141 Tibetans—young and old, students and monks—have set themselves on fire to call for the Dalai Lama’s return. The Chinese government has accused exiled Tibetans of plotting the protests.
In the seven years since riots left Lhasa burning in March 2008, China has, with a carrot-and-stick approach, obtained a firmer grip on the city. In the city’s main squares, such as at the Jokhang, which was a centre of protest in 2008 and also witnessed two immolation protests in 2012, there is still a police presence: two large black buses for security personnel are parked beside the square. But gone are the snipers that until a few years ago were a permanent presence on overlooking rooftops. As a measure of its newfound confidence, the government for the first time allowed Indian
|correspondents based in Beijing to travel to Tibet, to witness the opening of a new route for the Kailash yatra. Journalists are still not allowed to travel freely to Tibet. They can only do so on controlled government-organised groups, where opportunities to speak freely with locals are limited.|
Lhasa, the old capital, is today being transformed—from the lofty balconies of the Potala, a relentless sound of hammering and drilling fills the valley below. Outside the palace, the streets are not unlike any tier-two Chinese city. Beyond the ever-shrinking old city of Lhasa, wide avenues carry street signs written in large Mandarin Chinese characters; signage in Tibetan, written in much smaller script, hints at the government’s priorities.
“There is not much of the old city,” says Zong Kyi, a Tibetan who makes a living as a tour guide taking Han Chinese tourists around the Potala. The centre of Tibetan life in Lhasa is the Barkhor, a neighbourhood of old streets that spreads out around the Jokhang monastery that is at
A CONTINUING INFLUX
OF HAN CHINESE
WORKERS AND TOURISTS
HAS CHANGED LHASA’S
the centre of the city. The Barkhor, Tibetans say, is an ever decreasing speck in a fast-expanding Lhasa: a sprawling “new development zone” of factories is the priority project that is today being built on the city’s suburbs.
A government white paper published in April listed Tibet’s achievements: double-digit GDP growth; 99.59 per cent enrolment in primary schools; life expectancy reaching 68.2 years, doubling what it was in the early 1950s; ending illiteracy, prevalent in the 1950s, among the young and middle-aged; and providing free education and healthcare. China says since 1952—two years after the
PLA occupied Tibet—it has pumped around 544 billion yuan (close to $90 billion) into the region.
Conversations with half-a-dozen Lhasa residents suggested that beneath the veneer of calm, Lhasa still remains a city divided. While there is agreement that things have improved since the riots of 2008, there are, among Tibetan residents, deep anxieties about the nature of China’s development. A continuing influx of Han Chinese temporary workers and tourists has changed the nature of the city, residents said, with the perception that Tibetans are now a minority in Lhasa.
Zheng Wei, who, like others in this article did not want to be identified by his real name for fear of retribution by authorities, is among the growing number of migrant Chinese who have been encouraged by the government to move to Tibet to “help development”. From Sichuan province, Zheng said there was high ethnic distrust when he moved in 2009, a year after riots. “Things are better now,” he said. But that wasn’t a feeling
A CHINESE POLICEMAN STANDS GUARD IN LHASA WITH THE POTALA PALACE IN THE BACKDROP
* i i i
I always tell all Buddhists—Chinese or Vietnamese or Burmese or Sri Lankans—that we should be 21st century Buddhists who are knowledgeable about the Buddha dharma.
and then 100 years old but after th I have my doubts. According to phy – cians from Taiwan and Tibet, judgir.: my physical condition, it’s very p( – sible that I will live to be 100 years.
A. I am not much concerned about th- 15th Dalai Lama. Sometimes it seems as if the Chinese government is mor- concerned than I am. Sometimes, i jokingly say that the ceasing or end c this institution should take place with the 14th Dalai Lama, who is quit- popular. If the 15 th Dalai Lama come; and he is a disgrace, that will be much worse! (Laughs.)
I REALLY ADMIRE
XI JINPING’S COURAGE
AND HIS WAY OF
THINKING. BUT HE
SHOULD EXERCISE AND
LOSE SOME WEIGHT
THE DECISION WHETHER
THE INSTITUTION OFTHE
DALAI LAMA SHOULD
CONTINUE OR NOT LIES
WITH PEOPLE OFTIBET.
The Dalai Lama doesn’t give many interviews, dividing his time between his home in McLeodganj, Himachal Pradesh, informally advising the Tibetan government-in-exile located there and travelling the world delivering lectures, giving audiences and sharing his world view with the world’s most powerful people, including US President Barack Obama. En route to the US, where the Tibetan community is celebrating his 80th birthday, the Dalai Lama met Senior Writer Jyoti Malhotra for an exclusive interview, speaking candidly about issues that have simmered beneath the surface for decades—his relationship with China, a possible reincarnation and his years in India. Excerpts:
YES, I WANTED TO MEET
XI JINPING BUT,
OF COURSE, IT WAS
NOT EASY. I HAVE
ALWAYS WANTED TO
MEET CHINESE LEADERS.”
Republic of China. At the same time, we should have the full authority to take care of our culture, our rich Buddhist tradition and our environment. This will be to our mutual benefit. (Meanwhile) in China, Buddhism is growing… there are about 400 million Chinese Buddhists today.
Now, Xi Jinping is carrying out an almost impossible struggle against corruption. The previous two Chinese presidents, Hu Jintao and Jiang Zemin, also knew about the corruption problem but were too scared to tackle it. But Xi Jinping is boldly dealing with it and I admire his courage.
ERESTTO BE WITHIN CHINA”
of you were going to meet.
INDIA IS OUR GURU,
TIBET IS THE CHELA;
PROBLEMS, THE GURU
HAS A RESPONSIBILITY
OF SOLVING THEM.”
contribution to world affairs. To o< that, respect and trust from the r~ of the world is very essential. Bi : society where everything is a sii • secret—that is very harmful developing trust.
Q. From the time of Jawahari Nehru, you’ve had very close relz tions with all the prime ministr – of India. What about PM Narendrz