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CONTENT Page No.
Employees' State
Insurance Scheme (ESI) 1
Employee Deposit Linked
Insurance Scheme (EDLI) 10
Activities of Integrity Circle 14
Payment to Vendors 16
The Suppliers Meet at
Engine Division 18
Integrity Pact 21
Guidelines for Intensive
Examination of Public
Procurement Contracts
by Chief Vigilance Officers 26
Green Building Concept 32
Systemic Improvements
Recommended by the
Vigilance Department 35
Circulars Issued By CVC /
Shri T. Suvarna Raju, CMD inaugurated the 'Electrically
heated air circulating furnace with glycol quenching facility' at
TAD Kanpur on September 4, 2017. The state-of-the art facility
is equipped with programmable controllers, paperless recorder,
safety controllers, etc. The furnace is intended to cater the heat
treatment requirements (Solution Treatment & Annealing)
pertaining to Aluminium alloys and will replace the old salt
bath facility.
The foundation stone was laid at old HAL township, Bengaluru
for the construction of residential quarters (Phase III) by Shri R
Kaveri Renganathan, CEO (BC) in the presence of Shri S.
Puneet Kumar Vats, ADG, CPWD on August 23, 2017.
Facilities Management Division is instrumental in
constructing 584 quarters (240-A type, 240-B type, 80-C type
and 24-D type quarters) under this project.
Inauguration of Air Circulating Furnace
INDEX
Foundation Stone for Construction of Quarter's- Phase III
Dear Colleagues,
The new edition of Vigilance Magazine, Marg Darshan, on the topic "Execution of
Works & Services" is a continuation of Preventive Vigilance efforts on the part of the
Vigilance Department.
The "Works and Services" is a very important component of supply chain
management. This particular area always a�racts special a�ention from the investigation
authorities due to the nature of activities involved. The articles therein have dealt in detail
various improvements which are adoptable while functioning, leading to the pathway of
transparency. The executives of the Company, I am sure, by adopting these measures in
their working can improve their efficiency and at the same time will be able to operate in a
suspicion free environment.
The theme for Vigilance Awareness Week - 2017 given by CVC is "My Vision-
Corruption Free India". This edition of the Marg Darshan fits and gets nicely with the
theme of this year's Vigilance Awareness Week.
I hope this edition will motivate and ensure us to pursue righteousness in our
decision making and empower us to face the challenges of changing business
environment.
(T. Suvarna Raju)
Mes's saD geMC
Mes's saO gV eC
Dear Colleagues,
It is a ma�er of great pleasure and pride to address all of you through this latest
edition of Marg Darshan which is in continuation of the earlier one on Supply Chain
management of Works and Services.
The primary focus of Central Vigilance Commission on Preventive Vigilance is
adopted in the current edition in right earnest and spirit. Publishing of this magazine is
part of the various such activities undertaken by Team Vigilance. I firmly believe that by
adopting the guidelines and improvements as narrated in the various articles therein, the
transparency in working will certainly be ensured. These guidelines will act as an
important reference point while taking decisions by the executives concerned. Further,
issues like ESIC, EDLI etc., have also been dealt within this edition and it is hoped that
they are helpful due to its educative and informative nature.
The theme for the Vigilance Awareness Week-2017 is "My Vision - Corruption Free
India". Government of India has taken numerous initiatives in this direction in the past
and is continuously working towards complete transparency in various areas of
governance. We, at Vigilance Department have planned many activities in spreading this
message effectively to our staff as well as the public at large in line with the message put
across by the CVC.
On this occasion, I would like to convey on behalf of the Team Vigilance, our best
wishes to all the employees of this organisation for enhanced productivity and
achievement of organisational goals well in time.
(B. Selva Kumar, IPoS)
1
EMPLOYEES' STATE INSURANCE SCHEME (ESI)
J. H. NAYAK
Additional Commissioner & Regional Director,
Karnataka Region
ESI Act 1948 is first major Social Security
legislation after independence. Main aim of ESI
Act is provide for certain benefits to employees
in case of sickness, maternity and employment
injury and to make provision for certain other
ma�ers in relation thereto.
APPLICABILITY
ESI Act applies to factories and establishments
viz. Road Motor Transport undertakings,
Hotels, Restaurants, Cinemas, Preview
Theatres, News Paper Establishments, Shops,
Educational & Medical Institutions wherein 10
or more persons are employed. In some
states, the threshold limit for coverage of
establishment is still 20 and establishments
such as Educational & Medical Institutions etc.
have not been notified under ESI Act.
Employees of aforesaid categories of Factories
and Establishments drawing salary upto
`21,000/- per month are to be mandatorily
registered under the Act.
Initially, ESI Act was notified in the area based
on concentration of working class. Presently
Government has embarked on ambitious plan
for expansion and improvement of the scheme
called ESIC 2.0. Accordingly, ESI is being
implemented all over India and unit of
implementation is Districts. Under the ESIC 2.0,
the ESI Scheme has been extended to the whole
state of Karnataka with effect from 01.09.2016.
ADMINISTRATION OF THE SCHEME
ESI Scheme is administered by an Apex body
called ESI Corporation. This Corporation has
Central Labour & Employment Minister as
Chairman and representatives of Industry,
Trade Union , Medica l Profess iona ls ,
Member of Parliament and State Government
Representatives as Members. The Director
General is the ex-officio Member Secretary.
ESI Corporation is having its Headquarters in
New Delhi and operates through Regional /
Sub-Regional offices in States. For distributing
of Cash benefit & as Facilitation Centres,
Corporation has 628 Branch offices and 185 pay
offices.
Providing Medical Services in all States except
2
ii. Cash Benefit
iii. Other Benefits
I) Medical Benefit
ESI Scheme provides comprehensive medical
care in the form of Medical a�endance,
treatment, drugs and dressings, specialist
consultation and hospitalization to Insured
Persons and also to their dependants.
An Insured Person and his dependants are
entitled to medical benefits from the day of
entry into insurable employment. Insured
Persons and their families are being provided
medical care which includes outpatient care /
inpatient care, specialized medical care and
super specialty medical care as per requirement
of the patients. Besides, medical facilities under
AYUSH i.e. Ayurveda, Yoga, Unani, Siddha and
Homeopathy are also provided. Super specialty
treatment is provided through in-house super
specialties available in some of ESI Hospital or
ESI- PGIMSRs (Post Graduate Institute of
Medical Science and Research) or through tie-
up hospitals across the country. Such Super
Specialty Treatment are extended on cashless
basis.
Medical care to beneficiaries is provided
through a large infrastructure comprising
Hospitals, Dispensaries, Annexes, Specialist
Centres, Model Dispensaries - cum - Diagnostic
C e n t r e s ( M D D C ) , I M P c l i n i c s a n d
arrangements with other health institutions.
The range of medical services provided
covers preventive, promotive, curative and
rehabilitative services. In-patient services are
provided through ESI Hospitals and through
empanelment (tie-up) private and Government
Hospitals.
Delhi is the responsibility of the concerned State
Governments. The ESI dispensaries and the
hospitals are being administered by the
respective State Governments. 7/8 funding
towards administering the dispensaries and
hospitals will be done by Corporation and 1/8
of the expense is being borne by State
Government.
To bring about major change in Medical benefit
delivery system ESI Corporation is directly
running 36 hospitals spread all over the country.
Accordingly, each State has one Model ESIC
Hospital and one or more ESIC hospital. ESIC is
also running Medical Colleges in Bangalore,
Chennai, Kolkata (Calcu�a), Faridabad,
Gulbarga, Hyderabad & other places and P.G.
Medical Colleges at Bangalore, New Delhi,
Kolkata (Calcu�a) and Mumbai. It also has
Dental & Nursing Colleges.
FUNDING OF SCHEME
Under the Act, the employers are required to
pay contribution at the rate of 4.75% percent of
wages of the covered employees. The rate of
contribution for the employees is 1.75% percent
of their wages. The contribution is being paid by
employer concerned & employee share is being
collected by employer and remi�ed to the
Corporation, along with the employer's share.
Low paid workers drawing average wages upto
Rs.137/- per day are exempted from paying their
share of contribution. However, the employers
are required to pay their share of contribution.
BENEFITS TO REGISTERED EMPLOYEES
ESI registered employees are called Insured
Persons (I.P.).
Following facilities are made available to IPs:
i. Medical Benefit
3
Benefit Contributory Condition
Medical Benefit Medical facilities for self and dependant family members from
day one of entering insurable employment.
ESI provides Primary, Secondary & Tertiary / Super Speciality
Treatment based on eligibility.
Old Age Medical Care Insured person who leaves the insurable employment on
a�ainment of the age of superannuation or retires under a
voluntary scheme or takes premature retirement, after being
an insured person for not less than 5 years.
Retired IP and his / her spouse can avail old age medical care on
payment of nominal contribution of Rs.120/- per year.
ii) Cash Benefit
Cash Benefits to the beneficiaries of the Scheme are disbursed through a network of Branch Offices
located across the State. Cash Payments to the beneficiaries are effected directly to the bank
accounts of the insured persons / dependants through ECS.
Benefit Contributory condition Duration Rate
Sickness Benefit
Payment of contribution for
78 days in corresponding
contribution period
For 34 specified long term
diseases continuous
insurable employment for
two years with minimum
156 days contribution in
four consecutive
contribution periods
Sickness Benefit Upto 91 days in two
consecutive benefit
periods.
124 days initially
which may be
extended upto 309
days in chronic
cases.
Approx. 70 of
the average
daily wages
Approx. 80 of
the average
daily wages.
Enhanced Sickness
Benefit
Same as above 14 days for
Tubectomy 7 days
for Vasectomy,
extendable on
medical advice.
100 of the
average daily
wages.
Extended Sickness
Benefit
4
Disablement Benefit
From day one of entering
insurable employment for
disablement due to
From day one of entering
insurable employment in
case of death due to
employment injury or due
to accident while
commuting from residence
to work place or vice versa.
Contributions in respect of
her were payable for not
less than 70 days in the
immediately preceding to
consecutive 2 contribution
periods. *
Temporary
Disablement
Benefit
As long as
temporary
disablement
For life to the
widow or
until her re-
marriage, and
to dependent
children till
the age of 25
years and to
dependent
parents etc.
subject to
conditions
For 26 weeks in case
of confinement. For 6
weeks in case of
miscarriage.
Extendable by 1
month on medical
advice in case of
sickness arising out of
Pregnancy,Confineme
nt, Miscarriage.
Approx. 90 of the
average daily wages.
Approx. 90 of
average daily wages
shareable in fixed
proportion among
all dependants.
100 of the
average daily
wages.
Permanent
Disablement
Benefit
From day one of entering
insurable employment for
disablement due to
employment injury
Whole of life. For permanent total
disablement - Approx.
90 of the average daily
wages. For permanent
partial disablement -
proportionate to the
loss of earning
capacity as
determined by the
medical board.
Dependants'
Benefit
Dependants'
Benefit Maternity
Benefit
*In case the insured woman has not fulfilled the eligibility criteria for availing maternity benefit under the ESI Scheme, she can avail the paid maternity leave
for 26 weeks from her employer as per Sec.SA of the Maternity Benefit Act.
5
iii) Other Benefits
An Insured Woman or an IP in respect of his wife is eligible if confinement occurs at a place where necessary medical facilities under ESI Scheme are not available.
From day one of entering insurable employment
In case of physical disablement due employment injury
In case of physical disablement due to employment injury
In case of involuntary loss of employment due to closure of factory, retrench-ment or permanent in invalidity due to non-employment injury and the contribution in respect of him have been paid/ payable for a minimum of two years prior to the loss of employment.
Same as above
- Insured Person should have paid Regular contribution for 3 years or more.- Reservation based on number of years of contribution & SC/ST/OBC etc. As per Government rules.
Up to two confinements only.
For defraying expenses on the funeral of an Insured Person
As long as vocational training lasts
As long as person is admi�ed in an artificial limb centre.
Maximum 24 months during life time
For a duration of maximum 1 month
Confinement Expenses
Funeral Expenses
Vocational Training
Physical Rehabilitation
Unemployment Allowances (RGSKY)
Skill Up gradation Training
Reservation for Wards of IPs in admission to ESIC Medical & Dental Colleges.
Rs. 5,000/- per confinement
Actual expenses subject to a maximum of Rs.10,000/-
Actual fee charged or Rs. 123/- a day, whichever is higher. 100 % of the average daily wages
100 % of the average daily wages
50 of the average daily wages for first 12 months.25 % of the average daily wages from the next 13 to 24 months
Total of 337 seats reserved for award of IP in the year 2017. Refer to websites: www.esic.nic.in/admissions & www.mcc.nic.in for details
Benefit Rate
Remarks
DurationContributory condition
Contributory condition / Duration
6
ROLE & RESPONSIBLITY OF
EMPLOYEES
Employees to ensure that they are registered
under ESI by his employer online correctly and
promptly, immediately on appointment, with
all the relevant information.
Employees should complete all the formalities
for enrolment and obtain e-Pehchan card at the
earliest.
Whenever events such as marriage, birth or
death entails any additions or deletions in the
family particulars of an Insured Person, the
Insured Person should report to his employer to
enable the employer to upload the requisite
information in the ESIC web portal.
If the employee joins/switches over job and if he
has already been registered under ESI with ESI
Registration number (Insurance Number) the
same should be reported to the new employer,
so that no duplicate insurance number is
allo�ed.
Certain benefits are based on the length of
contribution. Hence registering with the
existing ESIC Insurance number, even on
change of employment, will entitle the Insured
Person to avail the benefits accrued to the
existing insurance number on account of
p a y m e n t o f c o n t r i b u t i o n i n t h e p a s t
employment.
The employees may get guidance from his
employer for claiming any lawful benefit
under the ESI Scheme and his rights and
responsibilities under the Scheme.
The employees should follow referral
procedures for medical treatment on cashless
basis except in case of emergencies.
DUTIES AND RESPONSIBILITIES OF
PRINCIPAL EMPLOYERS VIS-A-VIS
CONTRACTORS UNDER ESI ACT
Prior to engaging workers through contractors,
Principal Employer should ensure that the
contractor is covered under ESI Act. Do not
engage any contractor without an ESI
Coverage.
Principal Employer should ensure that all the
contract workers entering their premises
possess ESI Number/e-Pehchan Card.
Principal Employer (PE) should ensure that the
Immediate Employer (IE) (contractor) regularly
pays ESI Contributions for their deployed
workers EVERY MONTH (PE can ensure the
same using the Employer portal).
The compliance status in respect of individual
workers deployed for them can be verified by
the principal employer through the "Insured
person portal" . www.esic. in/employee
portal/login.aspx.
As per Section 40(1) & 41 of the ESI Act,
Principal employer is responsible for payment
of employees and employers contribution, not
only in respect of their workers but also that of
Immediate Employers.
Principal Employer should promptly report
occurrence of any accident in their premises in
(through Employer portal) respect of contract
workers also to the ESI Branch office.
All types of contract workers, including daily
rated, weekly rated, fortnight rated or monthly
rated, badli workers, casual/piece rated
workers are coverable under the ESI Act.
Contract workers engaged for administrative
work, manufacturing process, housekeeping
7
services, security guards, gardeners, vehicle
drivers etc., are also coverable.
In respect of Resident Welfare Association
(RWA's)guards, housekeeping services,
gardeners, electricians, plumbers, carpenters
etc., who are on the rolls of the association will
be coverable.
In respect of educational institutions, both
teaching and non teaching staff, even if on
contract basis are coverable.
In respect of medical institutions, Doctors
(if their wages is less than the ESI wage ceiling),
Nurses, Para-Medical Staffs, Bio-Medical Waste
Management personnel etc., are coverable.
GRIEVANCE REDRESSAL MECHANISM
1) Public Grievance Module 2.0
ESIC has launched independent Public
Grievance Module 2.0 for lodging ESIC
related Grievance online through ESIC
website 'www.esic.in' or 'www.esic.nic.in'.
2) Toll Free Helpline Number for Redressal
of Public Grievances
The ESI Corporation has set up the Public
Grievances Redressal System at all levels i.e.
H e a d q u a r t e r s O ffi c e / R e g i o n a l / S u b -
Regional/Divisional/Branch Offices/ESI
Dispensaries/ESI Hospitals. To ensure
expeditious disposal and speedy redressal of
public grievances under the ESI Scheme,
various measures have been taken by the
Corporation. It includes a Toll Free Helpline
No. 1800-11-2526 activated at Headquarters
office. Besides the above, help lines have also
been installed in ESIC RO/SRO to cater to local
stakeholder. Karnataka Toll Free Helpline
No. 1800-425-0636.
HAPPY EMPLOYEES
MAKE HAPPY EMPLOYER
Employers are freed of all liabilities of
providing medical facilities to employees and
their dependants in kind or in the form of fixed
cash allowance, reimbursement or actual
expenses, lump sum grant or any other medical
insurance policy of limited scope, unless it is a
contractual obligation.
Employers are also exempted from the
applicability of the Maternity Benefit Act
(except under section SA of the Maternity
Benefit Act) and Employee's Compensation Act
for employees covered under the ESI Scheme.
Employers are freed of any responsibility in
times of sickness, employment injury or
physical disablement resulting in loss of wages,
in respect of their employees , as the
responsibility of paying cash benefits shifts to
the Corporation in respect of the insured
employees.
Any sum paid by way of contribution under the
ESI Act is deducted in computing 'Income
under the Income Tax Act'.
Besides this, a New Inspection Policy has also
been launched and integrated with Shram
Suvidha Portal of the Ministry of Labour &
Employment wherein 13 Central Labour Acts
including ESI Act are aligned. It aims to
achieve the objective of simplifying business
regulations and bringing transparency and
accountability in labour inspection.
8
share is 3% and Employees share is 1% for
initially 2 years from the date of notification
only.
C. Digital Initiatives of ESIC
l Under i t s flagship d ig i ta l pro jec t
'Panchdeep' ESIC has facilitated not only
Online registration and payment; all ESIC
functions have become operational online.
l Launch of dedicated website www.
esichospitals.gov.in for ESIC Hospitals and
Dispensaries. This website offers a host of
hassle-free features to the ESIC Insured
Persons and their beneficiaries. This also
include booking of online appointment
with ESIC specialist doctors for treatment
on a convenient date according to location
and specialties of treatment available in all
36 ESIC hospitals.
D. Upgrading Infrastructure
l The e-Pehchan system (identity of the
beneficiaries) has been initiated. In order to
simplify and speed up the process,
employers have been authorized to issue
e-Pehchan. All Insured Person's details
being linked with their Aadhar Number.
LATEST DEVELOPMENTS
(ESIC 2.0 REFORMS AGENDA)
A. Health Reforms
Hon'ble Prime Minister launched as series of
ESIC Reforms Agenda ESIC 2.0 at the time of
inauguration of Indian Labour Conference,
which includes:-
l Online availability of Electronic Health
Record of ESI Beneficiaries (Insured Person
and their family members).
l Abhiyan Indradhanush: Ensuring the
change of bedsheet everyday according to
VIBGYOR pa�ern.
l Medical Helpline No. 1800-11-3839 for
emergency and seeking guidance from
casualty / emergency of ESIC Hospitals.
l Special OPD for Senior Citizens and
differently-abled persons in ESIC hospitals.
l Providing appropriate cancer detection/
treatment facilities, cardiology treatment
facilities, dialysis facilities on PPP Model at
different levels of hospitals.
l Se�ing up of Path Lab & X-ray facilities on
PPP model in all the dispensaries and ESIC
Hospitals in phases.
l Se�ing up of ICU Dental Care Management
and other Super Speciality Services on PPP
Model.
B. Extending Coverage of ESI Scheme
l At p r e s e n t , E S I S c h e m e i s b e i n g
implemented in industrial/commercial
clusters within districts. The target was to
cover all 393 districts, where these clusters
are located. Now, the next target is to cover
all the 681 districts of the country.
l For newly implemented areas under
ESIC 2.0, rate of contribution for Employer's
A session on HAL CDA Rules- 1984 was conducted for the O ffi c e r s o f A i r c r a f t D i v i s i o n o n 2 0 . 0 3 . 2 0 1 7 . The amendments and latest circulars on the subject were discussed in detail during the session along with relevant case studies. The session was conducted by Sri VK Suresha Prasanna, M (Vig) –AC.
9
OUTREACH ACTIVITIES CARRIED OUT BY
THE VIGILANCE DEPT. IN VARIOUS DIVISIONS
Gram Sabha in village Nigha Maniguda, Koraput Administering the pledge by School Students at Koraput
Nukkad at HAL Market, Bangalore Nukkad at Aircraft Division, Bangalore
Vigilance Awareness Programme at Muralinagar Village, Hyderabad
Integrity Pledge administered to the Apprentices at TTC, Hyderabad
Vigilance Awareness Programme at Sir M Visvesvaraya College, Bangalore
Vigilance AwarenessProgramme at RWRDC Division, Bangalore
10
EMPLOYEE DEPOSIT LINKED INSURANCE SCHEME (EDLI)
Employee Employer
EPF 12% Employee Contribution
– EPS contribution
EPS nil 8.33% (Maximum Rs 1250)
EDLI nil 0.5% (Maximum Rs 75)
EDLI or employee deposit linked scheme is an
insurance policy to give life cover to the
employees of organised sector. It is a group
term insurance. The family of employee gets the
sum assured if an employee dies during the
service period. The scheme is applicable to all
the organisation which are part of the EPF. The
term and condition of this scheme is set by the
employees provident fund organisation.
What is the Need of EDLI ?
Employee deposit linked insurance scheme is a
social security scheme. It gives necessary cover
to the family of employees. The scheme is an
effort to protect the large population from the
hardship.
In India, people are not aware of the insurance
planning and retirement planning. If not forced,
rarely an employee takes an insurance cover.
Hence, for the economic health of the society at
large, the government introduced social
security schemes. The employee provident
fund, Employee pension scheme and Employee
deposit linked insurance scheme are such
schemes. These schemes are for the organised
sector employee.
How To Subscribe EDLI
Employee deposit linked insurance scheme is
clubbed with the employee provident fund
scheme and employee pension scheme. An
employee has to subscribe these three schemes
altogether. The subscription to EDLI is
automatic with employee provident fund
scheme. It is the responsibility of the employer
to get its employee subscribed for the EPF
schemes.
An employee can't selectively choose a scheme
among these three. He/she has to subscribe all
the three schemes. These schemes can be
transferred with the change in job.
Contribution to Employee Deposit Linked
Insurance Scheme
The employee does not contribute to this
scheme directly. Rather, the contribution to this
scheme is done by the employers.
The contribution to EDLI is also clubbed with
the EPF contribution. The contribution to these
three schemes is done according to a formula.
The fixed percentage of salary plus DA is
routed for this scheme.
Rules of EDLI
Employee Deposit linked insurance scheme is a
comprehensive group term insurance. It covers
the death of employee irrespective of the cause.
l Every employee who is the member of
Provident fund gets covered under EDLI.
l The coverage is for 24 hours. It is not related
to the working hours.
l The coverage is for the whole earth. Being at
the workplace is not necessary.
11
l There are no exclusions under this policy.
l The insurance coverage is linked to the pay
of the employee.
l The coverage and premium is similar to
every employee. Age or any individual
factor does not make any effect.
l There is no minimum limit of service to
avail the EDLI benefit. Earlier, to be eligible
for EDLI, minimum 12 months service with
the present employer was required.
The Insurance Claim Amount
The claim amount of the EDLI is decided by the
last drawn salary of the employee. The claim
amount would be the 30 times of the salary.
Along with this, you would also get a bonus.
This bonus would be 50% of the balance in your
EPF account. The maximum bonus would be Rs
1.5 lakh. The maximum sum insured would be
Rs 6 lacs. For this calculation salary is 'basic pay
plus DA'.
Procedure To Claim EDLI Amount
In case of an unfortunate death of the employee,
the nominee can claim the insured amount. If
there is no nominee, the legal heir can claim the
amount. To claim EDLI, the form 5 should be
used. It is be�er to submit the claim form with
EPF withdrawal form.
Who Can Claim EDLI Amount
Members of family (Nominees) nominated
under EPF Scheme.
l In case of no nomination, all members of
family (except the major son, married
daughters having husband alive, and major
son, married daughters having husband
alive of the deceased son of the deceased
member.)
l In case of no family, and no nomination,
legal heir.
l Guardian of a minor nominee/family
member/legal heir.
Claim Form Instructions
l The claim under EDLI is admissible only if
the deceased person was in active service
during the death.
l The EDLI claim form should be submi�ed
along with Form 20 and form 10D/10C (for
claiming the Provident Fund dues and
Pension/Withdrawal Benefit as applicable).
It facilitates to process the benefits of the
scheme in one go.
l All details should be wri�en in BLOCK
LETTERS and there should not be any
overwriting.
l In case the deceased member was a married
female, her Husband's name should be
mentioned in the column 1 (b) of the form.
l Details of Bank Account for receiving
payment: Correct name, branch and
address of the Bank where the claimant is
maintaining account should be furnished as
payment is sent directly to the Bank.
l For ensuring correctness of bank details, a
copy of the blank/cancelled cheque should
be a�ached with the claim form.
l The form has to be filled up separately by
each claimant.
l In case the claimant is minor it should be
filled up by the guardian on his / her behalf.
12
EDLIEDLI
7. Member of CBT/Regional Commi�ee EPF
8. Manager of the Bank in which the Bank
Account is maintained
9. Head of any recognized educational
institution
Other Alternatives of EDLI
The purpose of Employee Deposit linked
scheme is to give the term insurance cover to
every employee. Therefore, If an employer
gives term insurance cover to all of its
employee, It is not required to contribute for the
EDLI.
The employer, if wishes, can opt for group term
insurance scheme in lieu of EDLI. There is one
condition with this relaxation. The benefit of
such group term insurance scheme should be
equal to or be�er than the EDLI. The EPFO itself
approves the group term insurance scheme in
lieu of EDLI.
Indeed there are many group term insurance
schemes which give be�er benefits. These
scheme are popular among private employers.
These schemes give an option to add some
more feature such as accident benefit after
paying some extra premium.
Documents To Be Enclosed
l Death Certificate of the member
l Guardianship certificate if the claim on
behalf of a minor family member/nominee/
legal heir is by other than the natural
guardian.
l Succession certificate in case of claim by the
legal heir.
l Copy of a cancelled/blank cheque of the
bank account in which payment is opted.
l In case the members were last employed
under an establishment exempted under
the EPF Scheme 1952, the employer of such
establishment should furnish the PF details
of last 12 months under the Certificate part
and also send an a�ested copy of the
Member's Nomination Form.
A�estation of the Claim
The application should be got a�ested by the
employer under whom the member was last
employed. In case the establishment is closed
and there is no Authorised Officer to a�est the
claim form, it can be a�ested with official seal
by any of the following officials.
1. Magistrate
2. A Gaze�ed Officer
3. Post/Sub-Post Master
4. President of the Village Panchayat where
there is not Union Board,
5. Chairman/ Secretary/Member of Municipal
/District Local Board,
6. Member of Par l iament/Legis la t ive
Assembly
13
CTE, REGULAR INSPECTIONS BY VIGILANCE
As a part of strategy of implementation of effective preventive vigilance in the organization,
regular and surprise inspections are conducted in sensitive filed offices and work sites in order to
detect if there were any instances of improper practices in execution of Contracts, gross or wilful
negligence, recklessness in decision making. During inspections, special emphasis is focused on
the quality of works and also ensure quality tests are conducted at regular intervals as specified in
the Works Manual.
Inspection of ICMF project by CVO
CTE Type inspection of Wind Mill Project under CSR in Davanagere District.
Murti Visarjan Pond and construction of Park at Ganga Ghat under CSR Activities, Kanpur
14
Bangalore have presented a group song with
the theme on Integrity during the programme.
Introductory Sessions: As part of the Integrity
Circle activities for the academic year during
the year 2017-18, introductory sessions were
organized in HAL Gnanajyoti School on
24/08/2017, HAL West Primary School on
30/08/2017, HAL Public School on 31/08/2017,
HAL East Primary and Girls High School &
HAL High School on 01/09/2017. During the
Introductory session, the concept of Integrity
Circle, the role and responsibility of each of the
members of Integrity Circle were explained to
the students. Various activities to be carried out
during the year were also discussed in
consultation with the Principals and co-
ordinating teachers of each School. Shri
Chudasama Vijaykumar K, SM(V)-Overhaul
Division, Shri V K Suresha Prasanna,M(V)-
Engine/IMGT and Shri Joby Joseph,DM(V)-
F&F are co-ordinating the activities of Integrity
Circle from Vigilance Department.
ACTIVITIES OF INTEGRITY CIRCLE
1. Introduction
Corruption is a social evil and a great menace in
the Modern World which affects the moral
fabric of the Society as a whole particularly
with respect to children. There are various Anti-
corruption agencies/Organizations/NGOs in
the country focused on Prevention & Control of
corruption embedded in the system/society.
Formation of Integrity Circle in HAL Schools is
an a�empt by HAL Management to inculcate
Integrity, Ethics, Morality and Social
belongingness among the students and make
them self sufficient & self reliable to become
responsible citizens of the country.
Integrity Circle in HAL Bangalore Schools
was inaugurated on 26th Feb 2014. Integrity
Circle comprises of 25 volunteer students and
one student leader from each school. In order to
identify and to bring in unity among team
members, a distinct uniform has been issued to
the students of the Integrity Circle. Various
group activities and awareness programmes
are conducted among the Children of Integrity
Circle every year to promote Integrity, Moral
values and Ethics.
2. Activities carried out during 2017-18
Integrity Circle at Independence Day
Celebrat ion: Cul tura l programme in
connection with Independence Day was
organized at HAL Ghatage Convention Centre
on 20th Aug 2017. Shri T Suvarna Raju,
Chairman & Managing Director, HAL was the
Chief Guest on the occasion. The Integrity
Circle members of HAL Gnanajyoti School,
If a country is to be corruption free and
become a nation of beautiful minds,
I strongly feel there are three key
societal members who can make a
difference. They are the Father, the
Mother and the Teacher
– Dr. APJ Abdul Kalam
15
ACTIVITIES OF INTEGRITY CIRCLE
Prize distribution by CVO, to the Students of Integrity School
Introductory Session at HAL Public School, Bangalore
Integrity Circle activity at HAL East Primary School & Girl's High School and HAL High School, Bangalore
Dignitaries during Integrity Circle Activity
Theme Song on Integrity, by Integrity School Students
March past by Integrity Circle Students, Koraput
16
PAYMENT TO VENDORS
Success of any large scale business is highly
dependent on relationship between its business
associates. It is an undisputable fact that a win-
win situation can be achieved by harmonizing
the relationship between the company and its
suppliers in doing the business. Payment to
suppliers is the most significant step in
establishing a healthy and reliable supply chain
management in any Company.
None can deny the significance of making
timely payments in HAL but at the same time
the state of affairs with respect to making timely
payments to vendors is far from satisfactory. It
is common knowledge that if the payments are
delayed due to any reason, the Cash Flow of the
vendor is adversely affected which in turn
affects the whole performance of the business.
We must agree that there are inadequate
considerations with respect to making timely
payments to vendors and at times least
importance is given to this key aspect.
In order to bring in systemic improvements for
creating effective payment management
system, we need to meticulously examine
various stages involved in the procurement
process at HAL upse�ing the delicate balance
between procurements and timely payments to
vendors. An a�empt is made to highlight the
areas adversely affecting timely payments to
vendors :
Ø Ambiguous Terms and Conditions with
respect to payments in Purchase / Works
Orders.
Ø Unwelcomed gestures leading to undue
delay at the time of making supplies at
Material Gates of Divisions.
Ø Lack of proper planning with respect
to site readiness especially regarding
procurement of machineries and other
capital items.
Ø Delay in carrying out inspections or
clearing Receiving Reports.
Ø Delay in Commissioning a�ributable to
HAL.
Ø Delay in acceptance by User Department
Ø Delay in making Payment Advices
Ø Delay can also be a�ributed to insufficient
documentation provided by the vendor
and lack of monitoring from HAL.
The answer to all these shortcomings in the
system may be tackled with the following
suggestions:
a) Strengthening the Monitoring
Mechanism
Recently created Dash Board through IFS
on Single Sign-On may prove to be a game
changer with respect to monitoring at
Corporate Level. However, similar
monitoring system with the help of IFS at
every level by creating necessary alert
within the Divisions can improve the
situation further.
b) Optimum use of IFS
The facilities available in IFS system can
only be helpful once we synchronize our
functioning with the system by way of
making entries in real time.
17
e) Effective Communication Channel
There is a need to establish an effective,
prompt and transparent system for the
vendor so that he gets the real time
information at each stage after making
supplies till payment is received. This
system will not only help in keeping the
vendor in loop at all stages involved but
also will be helpful for HAL to rectify the
shortcomings if any.
It is high time to make an all out effort in
creating a robust and fool proof system of
payment and at the same time we must
realise the important aspect of making
timely payments. We may certainly
improve the situation by way of creating
awareness in this regard amongst the
efficient workforce of HAL.
c) Realistic payment Terms and Conditions
The delivery schedules can be negotiated
favourably to HAL accommodating the
internal process for releasing the payments
on priority.
d) Faster Clearance of RRs
Various system studies have suggested that
there is a considerable delay in RR
finalization resulting delay in making
payments. The same can be improved with
the help of close monitoring and co-
ordination between Quality and User
Departments. It is suggested that a time
frame can be defined for clearance of RRs-
category wise based on our past experience.
Visit of Indian Postal Service Officers to HAL Facilities on 22.09.2017
18
THE SUPPLIERS MEET AT ENGINE DIVISION
l The Suppliers meet was conducted on 28th
July 2017 at Engine Division (BC) with an
object ive to improve the Business
relationship with the Outsourcing vendors
and increase the vendor base. A total of 77
representatives from 53 Companies have
participated in the meet.
l The meet started with the welcome address
by Shr i Subhash Bangalore , DGM
(Outsourcing). In his key note address Shri
K Rajamani, GM (E & IMGT) shared his
views on the importance of Outsourcing
vendors for Engine Division (Manufacturer
to integrator) and also future business
opportunities for vendors at Engine
Division. Also, he stressed upon on-time
delivery of outsourced parts.
l Shri Prabhat Ranjan, DGM (Finance) gave
presentation on GST implementation,
Finance aspects and payment related
ma�ers. Shri CK Manjunath, CM (V)-BC,
explained procedures related to out-
sourcing activities and emphasized the
need for following rules & procedures. He
also requested to have absolute Integrity in
doing bus iness wi th HAL. Shr i V
Saravanan, CM (Outsourcing) gave the
presentation on outsourcing activities and
discussed in detail about the future
outsourcing packages like Gears, Tube
Bending and Special process etc.
l During the meet based on the overall
Performance, Quality of the product and
timely delivery, 15 vendors were presented
with mementos in appreciation of their
performance for the year 2016-17.
l 120 critical parts belonging to Shakti, Adour
and Artouste Projects were displayed
during the Suppliers meet. Vendors have
seen the critical parts and shown interest in
taking up the parts for machining based on
their capability.
l There was an interactive session among the
vendors and the Divisional Management
headed by Shri B Krishna Kumar, COP (E).
All queries and doubts relating to
outsourcing activities were discussed and
deliberated to find out possible solution
and building of business relation among the
both.
19
ADMINISTRATING OF E-PLEDGE AMONG EMPLOYEES,
CASUAL LABOURS AND GENERAL PUBLIC
Vigilance Commission has envisaged an innovative concept of “Integrity Pledge” to create greater
awareness and participation of the Public in the Vigilance activities. This Integrity Pledge is to be
taken by the individual citizens as well as by Corporate, Firms etc. To propagate Vigilance
message in the general public. This concept was prominently publicised by providing hyperlink to
enable wider participation in taking Integrity Pledge by the employees of the organization. The
various Contractor's and Vendor's Associations were also informed about these concepts and were
encouraged to take the Integrity Pledge.
21
Further, in view of the increasing procurement
activities of Public Sector Banks (PSBs),
Insurance Companies (ICs) and Financial
Institutions (FIs), the Commission vide
Circular No. 02/02/2015 dated 25.02.2017
advised that all PSBs, PSICs and FIs shall also
adopt and implement the Integrity Pact.
Integrity Pact
The Pact essentially envisages an agreement
between the prospective vendors/bidders and
the buyer, commi�ing the persons/officials of
both sides, not to resort to any corrupt practices
in any aspect/stage of the contract. Only those
vendors/bidders, who commit themselves to
such a Pact with the buyer, would be
considered competent to participate in the
bidding process. In other words, entering into
this Pact would be a preliminary qualification.
The essential ingredients of the Pact include:
l Promise, on the part of the principal not to
seek or accept any benefit, which is not
legally available;
l Principal to treat all bidders with equity
and reason;
l Promise on the part of bidders not to offer
any benefit to the employees of the
Principal not available legally;
l Bidders not to enter into any undisclosed
agreement Or understanding with
other bidders with respect to prices,
specifications, certifications, subsidiary
contracts, etc.
l Bidders not to pass any information
provided by Principal as part of business
INTEGRITY PACT
Standard Operating Procedure:
Background
In order to ensure transparency; equity and
competitiveness in public procurement, the
Commission has been recommending the
concept of Integrity Pact (IP) for adoption and
implementation by Government organizations.
CVC through its office orders No. 41/12/07
dated 04.12.2007 and 43/12/07 dated 28.12.2007
as well as Circulars No. 18/05/08 dated
19.05.2008 and Circular No. 24/08/08 dated
05.08.2008 recommended adoption of Integrity
Pact to all the organizations and provided
basic guidelines, for its implementation in
respect of major procurements in Government
Organizations. A Standard Operating
P r o c e d u r e ( S O P ) wa s i s s u e d b y t h e
Commission vide order No. 10/5109 dated
1 8 . 0 5 . 2 0 0 9 . T h e C o m m i s s i o n i s s u e d
clarifications regarding the appointment,
tenure and eligibility criteria of IEMs vide
Circular dated 11.8.2009 and 19.4.2010. The
review system for IEMs was modified vide
circular dated 13.8.2010 and clarification
regarding tenure of IEMs was issued by the
Commission vide its circular dated 23.7.2012.
Dep�. of Expenditure vide OM dated. 19.7.20
11, issued guidelines to all Ministries/
Departments/Organizations including their
a�ached/subordinate offices and autonomous
bodies for implementation of IP. Also, vide OM
dated 20.7.2011 Dep�. of Expenditure
requested Department of Public Enterprises for
directions to Central Public Sector Enterprises
for use of IP.
22
relationship to others and not to commit
any offence under PC/IPC Act;
l Foreign bidders to disclose the name and
address of agents and representatives in
India and Indian Bidders to disclose their
foreign principals or associates;
l Bidders to disclose the payments to be
made by them to agents I brokers or any
other intermediary;
l Bidders to disclose any transgressions with
any other company that may impinge on
the anti corruption principle.
Integrity Pact, in respect of a particular contract,
shall be operative from the date IP is signed by
both the parties till the final completion of the
contract. Any violation of the same would entail
disqualification of the bidders and exclusion
from future business dealings.
Implementation procedure
As stated in Department of Expenditure's O.M.
dated 20.7.2011, Ministries /Departments may,
in consultation with the respective Financial
Adviser and with the approval of the Minister-
in-charge, decide on and lay down the nature of
procurements/contracts and the threshold
value above which the Integrity Pact would be
used in respect of procurement transactions/
contracts concluded by them or their a�ached/
sub-ordinate offices.
The above provision is also applied for
procurements made by autonomous bodies for
which also the concerned administrative
ministry I department may lay down the nature
of procurements/contracts and the threshold
value above which the Integrity Pact would be
used.
The provision for the Integrity Pact is to be
included in all Requests for Proposal/Tender
documents issued in future in respect of the
procurements/contracts that meet the criteria
decided in terms of Para 3.1 and 3.2 above.
Tenders should specify that IEMs have been
appointed by the Commission. In all Tenders,
particulars of all IEMs should be mentioned
instead of nominating a single IEM in the
tender as tar as possible.
The Purchase / procurement wing of the
organization would be the focal point for the
implementation of IP.
The Vig i lance Depar tment would be
responsible for review, enforcement, and
reporting on all related vigilance issues.
It has to be ensured, through an appropriate
provision in the contract, that IP is deemed as
part of the contract so that the parties concerned
are bound by its provisions.
IP would be implemented through a panel of
Independent External Monitors (IEMs),
appointed by the organization, The IEM would
review independently and objectively, whether
and to what extent parties have complied with
their obligations under the Pact.
Periodical Vendors' meet, as a familiarization
and confidence building measure, would be
desirable for a wider and realistic compliance of
the principles of IP.
A clause should be included in the IP that a
person signing IP shall not approach the Courts
23
while representing the ma�ers to IEMs and
he/she will await their decision in the ma�er.
In case of sub-contracting, the Principal
contractor shall take the responsibility of the
adoption of IP by the sub-contractor.
Information relating to procurements/contracts
covered under IP and its progress/status would
need to be shared with the IEMs on monthly
basis.
The final responsibility for implementation
of IP vests with the CMD/CEO of the
organization.
Role and Duties of IEMs
The EMs would have access to all contract
documents, whenever required.
It would be desirable to have structured
meetings of the IEMs with the Chief Executive
of the Organization on a quarterly basis
including an annual meeting to discuss/Review
the information on tenders awarded during the
previous quarter. Additional si�ings, however,
can be held as per requirement.
The IEMs would examine all complaints
received by them and give their recommenda-
tions/views to the Chief Executive of the
organization, at the earliest. They may also
send their report directly to the CVO and the
Commission, in case of suspicion of serious
irregularities requiring legal/administrative
action. IEMs are expected to tender their advice
on the complaints within 10 days as far as
possible.
For ensuring the desired transparency and
objectivity in dealing with the complaints
arising out of any tendering process, the ma�er
should be examined by the full panel of IEMs
jointly as far as possible, who would look into
the records, conduct an investigation, and
submit their joint recommendations to the
Management.
IEM should examine the process integrity; they
are not expected to concern themselves with
fixing of responsibility of officers. Complaints
alleging malafide on the part of any officer of
the organization should be looked into by the
CVO of the concerned organization.
The role of IEMs is advisory, would not be
legally binding and it is restricted to resolving
issues raised by an intending bidder regarding
any aspect of the tender which allegedly
restricts competition or bias towards some
bidders. At the same time, it must be
understood that IEMs are not consultants to
the: Management. Their role is in-dependent in
nature and the advice once tendered would not
be subject to review at the request of the
organization.
Issues like warranty I guarantee etc. should be
outside the purview of IEMs.
Al l IEMs should s ign non-disc losure
agreements with the organization in which
they are appointed. They would also be
required to sign a declaration of absence of
conflict of interest.
A person acting as an IBM shall not be debarred
from taking up other assignments such as
consultancy with other organizations or
agencies subject to his declaring that his / here
additional assignment does not involve any
24
conflict of interest with existing assignment. In
case of any conflict of interest arising at a later
date from an entity wherein he is or has been a
consultant, the IEM should inform the CEO and
recuse himself/herself from that case.
All organizations may provide secretarial
assistance to IEM for rendering his/her job as
IEM.
In case of any misconduct by an IEM, the
CMD/CEO should bring it to the notice of the
Commission detailing the specific misconduct
for appropriate action at the Commission's end.
The role of the CVO of the organization shall
remain unaffected by the presence of IEMs. A
ma�er being examined by the IEMs can be
separately investigated by the CVO in terms of
the provisions of the CVC Act or Vigilance
Manual, if a complaint is received by him/her or
directed to him/her by the Commission.
Celebration of 70ᵗ� Anniversary of India's Independence Day at HAL
25
INDUCTION TRAINING PROGRAMME
The following Officers superannuated from the Vigilance Dept. during the year 2017. We wish
them and their family members a happy, healthy and peaceful retired life.
Superannuation of Capt(Rtd). D K Sharma, DGM(Vig)-MC
Superannuation of Shri. Baliar Singh, SM(V)-OH
A week long Induction Training Programme was conducted from 5-6-2017 to 9-6-2017 for
educating and enabling the newly inducted Vigilance Officers in their new assignments in the
Vigilance Department
FAREWELL TO OFFICERS OF VIGILANCE DEPT.
26
GUIDELINES FOR INTENSIVE EXAMINATION OF
PUBLIC PROCUREMENT CONTRACTS BY
CHIEF VIGILANCE OFFICERS
1. INTRODUCTION
Chief Technical Examiner's Organisation
(CTEO) conducts Intensive Examination(IE)
based upon Quarterly Progress Reports
(QPRs), submi�ed by the Chief Vigilance
Officers (CVOs) of different organisations.
It is the considered opinion of the Central
Vigilance Commission (herein after referred to
as 'Commission' only) that similar type of
Intensive Examinations (IEs) carried out by the
CVOs, while functioning as extended arms of
t h e C o m m i s s i o n , i n t h e i r r e s p e c t i ve
organisations, would bring about qualitative
and in depth improvement, both in terms of
contents and scope, approach to vigilance
administration. It is imperative that CVO of an
organisation carries out IEs, of some
judiciously chosen contracts , broadly
representing spectrum of the core activities of
the organisation.
Effort is hereby made to prepare broad
guidelines to help the CVOs effectively carry
out IEs of various procurement contracts at
their end.
In order to conduct Intensive Examination
effectively and in a proper manner, the CVO
should endeavour to associate himself along
with his vigilance team whenever any CTE
examination is undertaken by the CTEO in the
organisation.
2. OBJECTIVES
Our main object ive is to make public
procurement process most transparent, fair,
equitable, efficient, economic and conducive to
achieving value for the money spent. To meet
this end, purpose of the IEs, conducted by the
CVO of the organisation, are multi pronged and
as follows:-
i. preventive vigilance is the first and foremost
objective of such IE, conducted by the
CVOs. In the course of an IE, if it appears
that the extant guidelines/instructions,
on any subject related with public
procurement, procedures and practices are
deficient in any manner and afford scope for
malpractices or corruption, system
improvement should be suggested to the
Management to eliminate such loopholes.
Further, system improvements can also be
s u g g e s t e d t o b r i n g e l e m e n t s o f
transparency, fairness and equity in the
public procurement process;
ii. surveillance and detective vigilance will be
ensured by way of effective and in depth
IEs, which shall bring out various
irregularities and malpractices commi�ed/
prevailing in the procurement system.
People responsible can be suitably taken up
for their respective misconduct;
iii. recoveries, if any to be made, on account of
deficiencies in the execution of contractual
obligations , on the part of the contractor/s ,
will be given effect to, as a result of IEs;
27
iv. IEs by the CVOs will afford natural justice to
the officials of the organisation, responsible
for decision making and execution of the
contracts, as they will be given adequate
opportunity to explain their action/conduct,
before fixing of the responsibility, as a
logical conclusion of any IE. In this regard,
domain knowledge, be�er appreciation of
the circumstances and field conditions,
prevailing at the material time, of/by the
CVO, will help realistic assessment of the
systemic deficiencies and degree of
culpability of involved officials;
v. sharing of the experience and outcome of
IEs with other organisations, especially
from the same industry, on a regular basis,
will help maximize benefits of vigilance
administration; given the fact that most of
the vigilance units work with limited
resources, information sharing may
function as a multiplier in ensuring
vigilance effectiveness; and
vi. regularity in the submission of Quarterly
Progress Reports (QPRs) (as per the laid
down threshold monetary limits or a 'NIL'
report, as the case may be), compliance of
laid down instructions and qualitative
aspect, of at least prescribed number of IEs,
will help the Commission annually assess
the performance of the CVOs.
3. STRENGTHENING OF CVO'S
ESTABLISHMENT
It is imperative that adequate man-power is
available with the CVOs - especially the officers
having experience and expertise in various
procurement activities of the organisation. It is
for the CVOs to make a realistic assessment of
the requirement of the man-power and
infrastructure. It would be incumbent upon
Management to provide necessary support and
co-operation to the CVOs in this regard.
4. SELECTION OF CONTRACTS
The selection of contracts for IE should be done
from the QPRs, submi�ed by the CVOs to the
CTEO. Each CVO shall carry out IE of not less
than six (06 Nos.) of contracts of different nature
(supply, works, services, etc), contract values,
activity centres and areas in a year. Preferably,
selection should be done in a manner that, at
least, three contracts of large value, two
contracts of medium value and one contract of
small value are selected for IE. Value of the
contracts may be judiciously categorised to
decide the large, medium or small value
contracts, by the CVOs, keeping in view the
scale of procurement activities and nature, in
the organisation.
CVOs shall inform CTEO about details of
contracts selected for IE, so as to avoid duplicity,
if any, in the selection of contracts by the CTEO.
In cases where no contract qualifies to be
included in any QPR & a 'NIL' report is required
to be submi�ed, the CVO will select prescribed
number of contracts from the list of existing
contracts.
5. DOCUMENTS FOR EXAMINATION
After selection of the contracts for IE, all relevant
documents, samples pertaining to the said
contract, shall be collected and examined.
Following is a list of documents which should
normally be requisitioned for taking up an IE -
28
X. Original contract with consultant/
contractor.
XI. Guarantee bonds towards Performance
Guarantee, Security Deposit, Specialised
i tems , Machinery/Mobi l iza t ion/
Material Advances etc. including
extension of their validity, if any.
XII. (i) Insurance Policies for work, materials
equipment, men etc including extension
of validity.
(ii) Le�er of credit in original.
XIII. Guarantee for water tightness, termite
proofing, etc.
XIV. Standard specifications; inspection
documents.
XV. Standard Schedule of Rates.
XVI. Drawing – Architectural and Structural.
XVII. All connected measurement books, level
books field books and lead charts.
XVIII. All bills paid in original / running
account bil ls with all connected
enclosures/statements / vouchers.
XIX. Statements showing details of check of
measurements by superior officers,
copies of order laying down such
requirements.
XX. (i) Materials at site accounts / cement, steel
b i t u m e n , p a i n t s , wa t e r p r o o fi n g
compound, pig lead, anti-termite
chemical, etc.
(ii) Stock / Issue register of stores.
XXI. Site order book / test records / log books.
XXII. Details of extra / substituted items and of
deviated quantities being executed
considered for execution in the work
I. (a) Press cu�ings indicating publication
of Notice Inviting Tender (NIT)/
Expression of Interest (EOI) and
subsequent corrigendum(s), if any.
(b) Copy of print out in support of publicity
of the tender on the website:
Ii) for pre-qualification of Architects /
Consultants;
ii) for pre-qualification of contractors;
iii) call of tenders.
(c) Record of sale of tenders.
(d) Record of tender opening.
II. Record of Administrative Approval and
Expenditure Sanction.
III. Copy of Detailed Project Report (DPR)/
Detailed Estimate (DE) and its Technical
Sanction by the Competent Technical
Authority.
IV. Approval of NIT in original& draft Tender
Document.
V. Pre-Tender Documents.
VI. Record of proceedings of Tender Scrutiny
Commi�ee (TSC)/ Tender
Evaluation Commi�ee (TEC):
Ii) for selection of architects/consultants;
ii) for Contractors/suppliers/ other service
providers.
VII. Record of current assessment of the cost
to assess the reasonableness of the L1/H1
offer.
VIII . Details regarding negotiations, if any,
conducted with recording of reasons
before acceptance of tenders.
IX. Record of acceptance of tender by the
Competent Authority.
29
covered in the course of an IE across the
different organisations. It is out of experience in
an organisation only that a CVO will get to
know about the sensitive areas/activities/stages
which are to be kept under watch.
However, a broad list of the points to guide IE in
any organisation is as follows:-
I. Objective to be fulfilled by way of
undertaking the procurement process,
under examination.
II. Feasibility study, if any, before formulating
the project.
III. Assessment of the requirement/quantity;
any past trend, forecast etc.
IV. Preparation of a realistic cost estimate;
administrative and technical approvals of
the proposal by the competent authorities;
sanction of the expenditure by a competent
authority; budgetary provisions, etc.
V. Various aspects related to tendering stage of
the procurement process.
VI. Various aspects related with post tendering
and execution stage of the procurement
process.
VII. Availability and compliance of the extant
policies/ instructions, on the subject ma�ers
of procurement under examination, of the
GOI or other concerned bodies e.g. CVC;
availability, compliance and regular
updation (in light of extant policies/
instructions of the GOI/ concerned bodies
and current trends and practices, as
considered relevant to the overall objectives
of procurement process) of departmental
Codes/Manuals/instructions on the subject
ma�ers of procurement under examination.
along with analysis of rates.
XXIII. Hindrance Register.
XXIV. O ffi c e c o r r e s p o n d e n c e fi l e s a n d
inspection notes issued by inspecting
officer and their file.
XXV. Complaint records, if any.
XXVI. Any other documents relevant to the
procurement process. This list is not
exhaustive; CVOs may requisition more
documents, as considered necessary, for
an effective and holistic examination of
the contract.
6. INSPECTIONS
Inspections should be carried out with prior
intimation to the Management unless the
s i tuation demands otherwise. Officers
connected with various activities of the contract
viz. planning, design, tender processing,
acceptance of tenders and execution should be
duly informed. The representative(s) of the
contractor(s) and consultant, if any, should be
encouraged to be present during the inspection.
However, samples, if required, should be taken
in the presence of representat ives of
contractor(s) and officials concerned and should
be duly sealed. Signatures of the persons
present during sampling should be taken as a
token of their witness. Samples may be taken by
inspecting team for independent testing in a
laboratory of repute and reliability, preferably
Government ones.
7. CHECK POINTS TO CARRY OUT
INTENSIVE EXAMINATION BY CVOs
No amount of instructions can be adequate and
all inclusive to lay down the areas/ points, to be
30
a) a statement regarding correctness of the
facts stated in the Preliminary Report; if
some of the facts are not correct, this should
be clearly brought out and at the same time
the correct facts, if different from the facts
mentioned in the Report, should also be
indicated;
b) suitable reply/clarification/explanation/
supplementary information, from the
officials immediately responsible, for the
facts of commission or omission brought
out in the Report;
c) comments of the Unit Heads on (b) as
above;
d) any other query/information/document/
sample, as considered necessary, to bring
the IE to its logical conclusion.
The reply from the concerned Unit Head will be
made in a time bound manner, within 15 days
from the date of receipt of the reference from
the CVO or as decided by the CVO, depending
upon the merit of the case.
9. INTENSIVE EXAMINATION REPORT
After receipt of the reply against the references
based on Preliminary Report, from the
concerned Unit Head, IE Report shall be
prepared covering the following points:-
a) Preliminary estimate, administrative
approval and expenditure sanction, ve�ing
of demands, framing of specification,
assessment of quantity, etc. in respect of the
tender.
b) Detailed estimate, technical sanction.
c) Appointment of Consultant.
d) Pre-qualification of bidders.
VIII. Leveraging technology- status of
implementation of e-Procurement, e-
Auction, e-Reverse Auction etc.
IX. Training of the officials, dealing with the
procurement process, in different aspects
of the procurement.
X. Timely fulfillment of the objective, to be
met by way of the procurement process
under examination.
The l ist is not exhaustive. Any other
points/activities can be brought under scrutiny
to make the examination effective and
complete. In this regard, instructions issued by
the Commission, from time to time, and a list of
check points, hoisted by the Commission, on
its website, under the title 'ILLUSTRATIVE
CHECK POINTS FOR VARIOUS STAGES OF
PUBLIC PROCUREMENT', may be referred
to.
8. PRELIMINARY REPORT &
REFERENCES TO CONCERNED UNIT
HEADS
Based on scrutiny of the documents & field
inspections carried out, CVO shall summarise
the findings in the form of a Preliminary
Report. He shall arrange to take over all
original documents considered important,
necessary and relevant pertaining to the case
that are likely to be required to prove charges,
if any, during disciplinary action/prosecution
stage.
Wherever required, references shall be made
to the concerned unit heads, seeking
clarifications and/or advising immediate
interim actions, if any. Such references may
seek –
31
e) Call of tenders and award of work.
f) Contract Agreement.
g) Inspection, dispatch and acceptance of
performance.
h) Scrutiny of bills.
ii) Scrutiny of site records.
j) Site inspection.
k) Updation of Codes/ Procurement Manual/
instructions.
l) Le ve r a g i n g t e c h n ol og y - s t a t u s o f
implementation of e-procurement/
e-auction/ e-reverse auction, etc.
m) Training of the officials dealing with
procurement.
n) Suggested System Improvements.
o) Recoveries effected, if any.
Above list is not exhaustive; other points
re levant to the contract may also be
incorporated, if required.
The Report will bring out instances of
lapses/irregularities in appointment of
consultant, prequalification of bidders,
defective bidding conditions, awarding
contract, defective contract conditions and
clauses, pre-dispatch inspection, post contract
amendments, over payments made to
contractors, substandard work, infructuous
and avoidable expenditure etc.
The Report will also suggest preventive
measures in certain areas as safeguard against
mal-practices or corrupt practices and to plug
loopholes in the procedure, rules, regulation
etc. In such cases action should be taken by the
CVO to have suitable directions issued by the
Management of the Organisation.
10. ACTIONS ON THE IE REPORT
The CVO shall submit the IE Report to the
Management for information and necessary
action. The Management shall take appropriate
/corrective/punitive action with regard to the
report within 90 (ninety) days from the date of
its receipt and ensure taking them to finality.
Where serious irregularities, grave misconduct,
negligence, etc. are observed on the part of any
public servant and disciplinary actions, or
otherwise, involves advice of the Commission,
same shall be processed as per the extant
instructions on the subject, within 90 (ninety)
days from the date of preparation of the Report.
CVOs shall continue to furnish details/
Information of these IEs (under the head 'CTE
TYPE INSPECTIONS') and their outcome to
the Commission, on annual basis, as per extant
instructions.
Each CVO shall share relevant information e.g.
facts of the case in brief, irregularities noticed,
systemic improvements suggested, issues
requiring policy decision, etc., from the
examined cases as case study, on regular basis,
with other organisations, especially from the
same industry.
The World will not be destroyed by
those who do evil, but by those who
watch them without doing anything.
32
“A green building is one which utilizes less
water, optimizes energy efficiency, conserves
natural resources, generates less waste and
provides healthier spaces for occupants, as
compared to a conventional building." It is
needed now a days since "Bridging the gap
between demand and supply of non-renewable
and scarce resources through cost-effective
interventions".
Indian Green Building Council (IGBC) Green
Homes is the first rating programme developed
in India, exclusively for the residential sector
which was based on U.S. Green Building
Counci l (USGBC) rat ing system. The
certification is named as LEED-INDIA
[Leadership in Energy and Environmental
Design] and another rating system is GRIHA,
an acronym for Green Rating for Integrated
Habitat Assessment, is the National Rating
System of India. It has been conceived by TERI
[Energy and Resources Institute] and
developed jointly with the Ministry of New and
Renewable Energy, Government of India. It is a
green building 'design evaluation system', and
is suitable for all kinds of buildings in different
climatic zones of the country.
The evaluation of rating will be based on the
following criteria which will certify by Energy
and Resources Institute.
l Site planning
l Building planning and construction stage
l Building operation and maintenance
GREEN BUILDING CONCEPT
The benefits of GRIHA rating system
l U p t o 3 0 % r e d u c t i o n i n e n e r g y
consumption
l Limited waste generation due to recycling
l Less consumption of water
l Reduced pollution load & liability
A detailed note on GRIHA and how points are
earned & evaluation process along with a list of
buildings which are already or being registered
with GRIHA is available on websites at
www.dpe.nic.in. or www.grihaindia.org.
Green Building Concept to be incorporated as
per circular No. DPE/13(2)/10-Fin dated
11.03.2010 issued by Govt. of India, Ministry of
Heavy Industries & Public Enterprises
which states "all new buildings of Central
Government / Public Sector Undertaking to
meet at least the requirements of GRIHA -3 Star
[Green Rating for Integrated Habitat
Assessment], though every effort to be made to
achieve a higher star rating wherever site
conditions permit ideally, all Organizations
would aim at reaching GRIHA - 4 Star rating."
Our greatest weakness lies in giving up.
The most certain way to succeed is
always to try just one more time.
33
WORKSHOP FOR VIGILANCE OFFICERS
A workshop on Finance, Procurement, Works and Services was conducted at Aircraft Technical
Training Institute, Bengaluru from 4ᵗ� to 6ᵗ� October 2017 for the Vigilance Officers of the
Company. The workshop was inaugurated by Shri B Selva Kumar, IPoS, CVO along with
Shri C B Ananthakrishnan, GM(F)-CO, Shri G Venkateshwara Rao, GM(FMD) and AGM(TTI).
Senior officers from Finance, IMM, Planning, Civil Works, Electrical Maintenance and Legal
departments addressed the gathering and various challenges in their areas were deliberated. An
insight into the ongoing projects was also provided to apprise the difficulties faced during the
various stages of project implementation.
The aim of the workshop was to upgrade the skills of the Vigilance Officers with respect to the
present projects and to inculcate preventive vigilance. During the valedictory event, Shri
C V Ramana Rao, Director(F) and Shri M S Venkatesh, GM(F&F) addressed the Vigilance Officers.
Dignitaries during Inaugural Function
Dignitaries during Valedictory Function
34
Session by Shri. G V Rao, GM(FMD)
Session by Shri H J Padmanabha, DGM(PM)-AC
Session by Shri C B Anantha Krishnan, GM(F)-CO
Session by Shri N Manohar, AGM(W)-FMD
Session by Shri D Cha�erjee , AGM(F)-CO
Session by Shri V M Anand, DGM(W) - FMD
Address by Shri. C V Ramana Rao, D(F)
Session by Shri K C Meganath, CM(W) - FMD
35
SYSTEMIC IMPROVEMENTS RECOMMENDED BY
THE TECHNICAL SECTION OF VIGILANCE DEPARTMENT
Technical Section of Vigilance Department after
conducting detailed investigations in important
vigilance cases apart from recommending
disciplinary actions against the charged officers
also places a great emphasis on making
recommendations for systemic improvements
so that these recommendations will have a
permanent effect in improving the working of
the system and also will act as an effective
preventive mechanism to prevent recurrence of
such serious lapses in future.
Systemic improvements involve a deeper study
of present processes and policies to identify the
areas of weakness and ambiguity with the
objective to initiate corrective measures to
improve and strengthen the systems on a
permanent basis and to make the systems more
efficient, transparent and accountable.
Some of the major systemic improvements
recommended and implemented by the
Management are:-
1. To optimize the frequency of conducting
various types of tests for building materials
which will result in substantial saving of
public money and also precious time that is
wasted in conducting redundant tests.
2. Issuing TDS certificates in respect of income
tax and value added tax in a time bound
manner to avoid unnecessary harassment
to contractors.
3. Existing Procedure for approval of private
testing labs for material testing was
ambiguous resulting in a lot of complaints.
After studying these complaints Vigilance
unit has suggested corrective measures.
4. Recommended for systemic improvements
in the Consultancy agreements for
composite works to bring in clarity of
procedures for making fee payments.
5. Major workload of Horticulture wing is
about maintaining the gardens, lawns,
hedges, shrubs etc. and these items are
being operated as a non-schedule item in all
the horticulture units throughout the
Company. Vigilance has recommended
incorporating these items in the schedule of
works for the horticulture works so that
uniformity is maintained across the
Company.
6. Recommended for taking clear policy
decision regarding allowing of revocation
of already determined contracts to remove
the ambiguities.
7. Senior supervisory officers were asked to
monitor timely finalization of final bills of
the contractors. Strict timelines ensured.
8. Precautions to be taken for preparation of
detailed estimates to avoid vagueness in the
nomenclature of the items and to avoid
disputes arising at a later stage.
9. A number of irregularities which occur at
planning, tendering and execution stages of
works were pointed out and remedies
suggested.
36
10. Detailed recommendations were submi�ed
for formulation of a clear and transparent
Transfer/ Posting policy for all ranks of
officers and timely rotation of officers from
sensitive to non-sensitive postings.
11. Instructions issued for timely payment of
bills of local bodies so as to avoid payment
of surcharges.
12. Recommended improvements in the NITs
pertaining to the horticulture works
particularly regarding supply of flower
pots and decorated plants. Suggested
model NIT for horticulture works.
Recommendations are also made for non
spli�ing of works and sanctions.
13. Recommendations to streamline the
tendering procedure and to remove the
deficiencies in the NIT of providing security
guards and related works.
14. Streamlined procedure for removing
construction waste material/dismantled
material/old furniture/ old packing
materials from roofs of buildings.
15. Recommendations to streamline the
procedure and implementation of strict
time lines for disposal of dismantled
material, unserviceable stores and T&P
items to avoid loss to the Organization and
to prevent accumulation of large quantities
in the stores.
16. Strict guidelines were recommended to
avoid cancellation of NIT's under external
pressures. Guidelines to avoid inappro-
priate and frequent cancellation of tenders.
17. Preventive vigilance measures to prevent
misuse of user's ID's and password to
access personal or administrative data.
18. S u g g e s t e d i m p r o v e m e n t s i n t h e
registration/revalidation process of
contractor's enlistment process.
19. Suggested to collect quotations from
authorized dealers of the manufacturers.
20. Systemic improvements regarding
mechanized cleaning of oil /water storage
tanks and measurement of oil/water
through flow meters.
21. Recommendations regarding incorpora-
tion of suitable provisions in Works
Manual for clubbing of various specialized
electrical and mechanical services for
invitation of tender.
22. Recommendations to consider all high
rated items beyond 90% limit of the
estimated amount while preparing
justification/acceptance of tender.
23. Recommendations regarding precautions
to be taken while sanctioning secured
advance to contractors.
Efforts are being made by the Vigilance Unit in
HAL on a continuous basis with special
emphasis on preventive and participative
vigilance to develop and sustain a culture of
honesty and integrity in the Department which
will result in greater transparency and
accountability in all decision making processes
at all levels. Vigilance measures help the
management to get optimum results from the
different activities by enhancing efficiency and
productivity.
37
CSR ACTIVITIES BY HAL
HAL Handovers Kumudvathi River
Rejuvenation Project
Shri T. Suvarna Raju, CMD handed-over the
Kumudvathi River Rejuvenation projects to
village panchayats of Bengaluru rural district
on June 16, 2017. “This was implemented
as part of our CSR activities of 2016-17 for
Teppadabeguru mini water shed benefiting 35
villages. These projects will help in reviving
dried natural water resources and the natural
habitat of the region”, he said. The event
Lokarpana(dedication to people) was held at
Arashinakunte near Bengaluru. Shri V.M.
Chamola, Director (HR), other village leaders
and officials were present on the occasion.
The rejuvenation work at Teppadabeguru
included planting of saplings (5000), recharging
of wells (79) and borewells (9), creation of water
pools (15) and boulder checks (79). In all, in the
past three years, HAL planted 20,000 saplings,
built 50 water pools, recharged 36 borewells and
281 wells besides carrying-out boulder-checks
(281) in the region that covers Tavarekere,
Thyamagondlu, Mondigere, Teppadabeguru
mini-watersheds.
Kumudvathi is a tributary to river Arkavathi
and originates from Shivagange hills in
Nelamangala taluk of Bangalore rural district.
Both Arkavathi and Kumudvathi flow into
Tippagondanahalli reservoir which was serving
30-40% water requirements of Bangalore three
decades ago. At present, there is scanty inflow
from the river Kumudvathi. The scanty inflow is
due to degradation of natural vegetation, soil
erosion, and over-exploitation of ground water.
The catchment area covers about 460 sq km, 278
villages and is classified into 18 mini-
watersheds for rejuvenation work.
HAL as part of its CSR has been sponsoring
rejuvenation work of Mini Watersheds through
International Association of Human Values
(IAHV). Rejuvenation helps in revival of
38
Shri Daljeet Singh, CEO (MC) performed
“Bhumipujan” and laid the foundation stone
for 15 MW (AC) ground mounted grid
interactive solar power generation plant at
Nashik on June 11, 2017. The plant is expected to
generate 292 lakh units of power/electricity per
annum thereby fulfilling nearly 90% of factory
and township power requirement and enabling
the Division to go green. Excess power shall be
sold to MSEDCL as per the provisions of Power
Banking policy.
defunct bore wells and open wells, protects
drinking water sources, leads to agro-
horticulture developments, increases natural
vegetation leading to eco-hydrological
conservation.
Nashik Division Embarks on Green Energy:
Foundation Stone Laid for 15 MW Solar
Power Plant.
Shri Manish Agarwal, COO (Ujaas-EPC
Contractor), Shri Bh. V. Seshagiri Rao, GM
(AOD), Shri H. L. Suryaprakash, AGM (S), Shri
Ravi Gupta, GM (TUV-SUD, Consultant) and
other senior officers were present on the
occasion.
A medical camp was organized in township
hospital on September 4, 2017 for girls aged
between 14-20 years from nearby villages of
TAD Kanpur. Health kits including medicines
were distributed to the young girls by Dr. (Mrs.)
Ramani Raju and Mrs. Aparna Saxena. In a
separate event Dr. (Mrs) Ramani Raju also
interacted with the members of 'Sakhi Ladies
Club' and urged them to undertake work
related to social cause and upliftment of
underprivileged.
Medical Camp Under CSR Activities at
TAD Kanpur
The Earth provides enough to satisfy
every man's needs, but not every
man's greed.
39
Foundation Stone Laid for New Creche Building:
Medical Camp under CSR Activities at
Accessories Division, Lucknow
Swatch Bharath Camps under CSR Activities
at Accessories Division, Lucknow
Taking a step forward towards facilitating
working women, Dr (Mrs.) Ramani Raju, Chief
Patron, FWA-BC laid the foundation stone for a
new crèche building on September 4, 2017. The
new crèche building will be having full-fledged
infrastructure for meeting requirements of
children.
As the part of the CSR program, Accessories
Division, organized a medical camp focusing
'Personal Hygiene' in village Ram Nagar, Block
Nindura, Dis�. Barabanki on September 1,
2017. Dr. (Smt.) Ramani Raju, , Chief Patron,
FWA inaugurated the program that followed by
a lecture by Dr. P. Kumar, CMS on 'Personal
Hygiene'. A Nukad Natak and distribution of
personal hygiene kits to the villagers.
40
CIRCULARS ISSUED BY CVC
Sl. Date Originator Ref No Subject
No
1 23.01.2017 J Vinod Kumar 011/VGL/063 Systemic Improvement
Director (CVC) Guidelines - Engagement of
Consultants - regarding
2 31.01.2017 J Vinod Kumar 015/VGL/091 Adoption of Integrity Pact -
Director (CVC) Revised Standard Operating
Procedure - Regarding
3 07.03.2017 J Vinod Kumar 017/MSC/002 Expeditious finalization of
Director (CVC) Departmental Proceedings
Pending with the Ministries /
Departments / Organizations -
Regarding.
4 10.03.2017 Rajiv Verma CVC/RTI/MISC/16/006 Seeking similar information through
Under Secretary repeated RTI Applications - Central
& Nodal CPIO Information Commission's decision
- regarding.
The Central Vigilance Commission logo consists of a graphic representation of an eye encased within
the le�er "C". The eye represented in a pleasing blue colour is symbolic of the collective determination
of the community to be vigilant against any erosion of rights through illegal and improper actions of
public servants. Encased within the le�er "C", the eye represents the Commission overseeing the
vigilance administration in all public organisations and helping in arriving at quick and logical
decisions in all vigilance cases.
The logo has been grouped positive and negative elements within it and the deliberate choice of the
blue colour signifies an active, ever vigilance but positive and friendly central Vigilance Commission
CVC LOGO
41
TEAM VIGILANCE WELCOMES THE OFFICERS IN ITS FOLD
Shri. K Gopal M Krishnamurthy,
CM(Vig)-SLRDC, Hyd
Shri. Chudasama Vijay Kumar,
SM(Vig)-Overhaul
Shri. Udaya Kumar Rout,
M(Vig),ED Koraput
Shri. Anand Eti,
M(HR-Vig)-CO
Shri. R G Kamble,
SM(Vig)-AMD Nasik
Sources: CTEO's corner CVC, EPFO, HAL, MES and CPWD Works Manuals.
Disclaimer: "The contributors have expressed their own views in the articles and the same should not be
construed either as the views of the editors or the official policy of the Company".
Patron-in-Chief
Shri. T Suvarna Raju, CMDEditor-in-Chief
Shri B. Selva Kumar, IPoS, CVO
Editorial Board
(From Left to Right)
Shri. Joby Joseph
DM(V)-A/c & F&F
Shri Prateek Kulshreshtha
DM(V)-RWRDC
Shri C K Manjunath
CM(V)-BC
Shri Kishore Nagadev
SM(V)-ARDC
Shri Renjith. R
M(V)-FMD
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