Fooder scam Judgement given by Sri G. K. Singh Spl. Judge VII CBI ...

14The policy of the Government of Bihar regarding purchase of articlesare given in appendix- 8 of Bihar Financial Rules, Vol.-II. The salientfeatures are as follows:-i) In cases of supply of all articles, worth more than Rs. 1,000=00 tendershould be invited and accepted only after the quality test which may becarried out during manufacture, before or after dispatch from supplier’spremises. An officer’s financial powers in the matter of purchase of storesordinarily extents to the limit to which he is empowered to enter intocontracts. Rule 130 of Bihar State Financial Rules, Vol. 1, clearly states thatpurchase orders should not be split in order to avoid the necessity forobtaining the sanction of higher authority, as required with reference to thetotal amount of the order. The Financial power of the Drawing andDisbursing Authority has been given in Section -2 of Chapter -7 forcontingencies of Bihar Financial Rules, Vol.-I. The financial power of theDDOs of the AHD has been given in the circular bearing No.2BT(2)/507/77/AH/3697 dated 25.3.77, issued by Shri BB Nathan, the thenSecretary, AHD & F, are as follows:-(I) DAHO - Rs.5,000=00(II) RDAH - Rs. 15,000=00It is required that bill should be printed and sub-vouchersshould be in Indian language and all signatures in Indian Language aretransliterated and marks of thumb impressions are attested. When a drawingofficer desires to draw money through a messenger, who is an employee ofthe office, he should invariably record a separate authority in prescribed proforma. The list of irregularities, which is treated as sufficiently serious tonecessitate disciplinary action, has been given in Rule 190 of the BiharTreasury Code, Vol.-I.It has been revealed during investigation that Dr. S.B. Sinhawas the kingpin among the conspirators. In the initial stage, the modusoperandi was to divert funds of other regions to Chotanagpur andSanthalpargana Regions, where he already got the DDOs of his choiceposted through manipulation or pairvi. Later on, when flow of central fundsbecame choked due to internal political and economic factors, fake allotmentletters started to be manufactured and distributed for encashment of passingthe fake medicines and fodder bills of the suppliers. The said S.B. Sinha,used to maintain direct liaison with the important suppliers for having access