Vol XIV, Issue No.2, October 2017

EXECUTION OF WORKS & SERVICES

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.

20

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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

CV

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igil

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Off

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7

"To make our country great, self-supporting and strong, work hard, work harder,

work with efficiency, work in a co-operative spirit and work with a team spirit".

- Bharat Ratna Sir M. Visvesvaraya