14The policy of the Government of Bihar regarding purchase of articlesare <strong>given</strong> 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 <strong>given</strong> in Section -2 of Chapter -7 forcontingencies of Bihar Financial Rules, Vol.-I. The financial power of theDDOs of the AHD has been <strong>given</strong> in the circular bearing No.2BT(2)/507/77/AH/3697 dated 25.3.77, issued <strong>by</strong> 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 <strong>given</strong> 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
15to the first hand information of the field. This exercise denied anyopportunity to the DDOs, however important role might have been played<strong>by</strong> him in facilitating the fraud, to threaten the position enjoyed <strong>by</strong> the S.B.Sinha. Moreover, Demand Drafts of big suppliers like accused TripurariMohan Prasad used to be brought through the respective DDOs, becausethey used to consider it below their dignity to visit the unit offices of AHD.Moreover, as Regional Joint Director, AHD, Ranchi the said S.B. Sinha washaving knowledge about the maximum stretchable limit of central and otherfunds under planned Schemes, because the annual budget indent for Centresponsored scheme, planned schemes, etc., used to be prepared <strong>by</strong> the officeof RDAH, Ranchi.The case originally registered <strong>by</strong> Sahebganj P.S. andsubsequently investigation of the case was taken over <strong>by</strong> the <strong>CBI</strong>, Patna asper the order of the Hon’ble High Court, Patna. Investigation has revealedthat withdrawals to the tune of Rs. 3,15,278=00; Rs. 43,16,793=40; Rs.27,19,726=50 and Rs. 6,02,630=00 were fraudulently and dishonestly madeduring the financial years 1990-91, 1991-92, 1992-93 and 1995-96respectively, on the strength of two fake allotment letters and 14 fake suballotmentletters. During investigation, a total of 163 bills worth Rs.67,49,989=22 were seized. As many as six bills worth Rs. 60,000=00 videwhich advances were paid to trainees were found irrelevant.Investigation has revealed that during 1990-91 no fakeallotment letters were used. During 1991-92 five fake sub-allotment lettersissued <strong>by</strong> Dr. Shesh Muni Ram the then RDAH, Dumka were used andduring 1992-93 a total of six sub-allotment letters issued <strong>by</strong> the said S.M.Ram were used. The details of these letters have already been <strong>given</strong> in theabove chart. Similar is the story of those fake allotment letters on the basisof which the fake sub-allotment letters were issued in favour of DAHO,Sahebganj <strong>by</strong> Dr. Shesh Muni Ram, the then RDAH, Dumka. These fakeallotment letters were procured <strong>by</strong> said Dr. S.M. Ram from Dr. S.B. Sinha,which proves their active connivance in the fraudulent withdrawal ofGovernment funds as stated above. Dr. S.M. Ram distributed the non-exitentfund, purported to have been allotted against fake allotment letters, to theDDOs working under his jurisdiction through fake sub-allotment letterssigned <strong>by</strong> him. All the details of those fake sub-allotment letters werewritten in Allotment registers maintained in the Office of Regional Director,
- Page 1 and 2: District-Ranchi Dated Ranchi the da
- Page 3 and 4: 324. Smt. Chanchala Sinha,Proprieto
- Page 5 and 6: 5(i) Accused Braj Bhushan Prasad st
- Page 7 and 8: 7nineteen) during the years 1990-91
- Page 9 and 10: 9Godda and dishonestly received the
- Page 11 and 12: 11Husbandry Office, Godda and disho
- Page 13: 13then becomes the responsibility o
- Page 17 and 18: 1702. 1991-92 Rs.1,55,000=00 Rs.42,
- Page 19 and 20: 19P.W. 18 Ramji Rai, Retired Inspec
- Page 21 and 22: 21P.W. 82 Bhola Nath Choudhury, Emp
- Page 23 and 24: 232/376 to 2/396 PW3 Voucher(21) an
- Page 25 and 26: 252/1130 Patna2/1131 to2/11392/1140
- Page 27 and 28: 273/28 PW3 Bill No. 334(C)/91-923/2
- Page 29 and 30: 293/106 PW3 Bill No. 132(C)/95-963/
- Page 31 and 32: 3113/2 PW3DAHO, SahabganjApproved R
- Page 33 and 34: 3315/65 PW9015/66 to 15/74 PW9015/7
- Page 35 and 36: 3525/7 to 25/8 PW20 2 Sub allotment
- Page 37 and 38: 3735 PW39 Partnership Deed36 to 36/
- Page 39 and 40: 3998/153 to98/16598/166 to98/18598/
- Page 41 and 42: 41that on fake allotment letters ex
- Page 43 and 44: 43allotted to DAHO, Sahebganj out o
- Page 45 and 46: 45his deposition he has given full
- Page 47 and 48: 47Treasury after making entries in
- Page 49 and 50: 49the Treasury it was his duty to d
- Page 51 and 52: 51persons. They have prepared forge
- Page 53 and 54: 53P.W. 59 Dr. Dhanik Lal Mandal, TV
- Page 55 and 56: 55In this respect, P.W. 23 Dr. Dula
- Page 57 and 58: 57Gupta, Accountant, Sahebganj Trea
- Page 59 and 60: 59P.W. 4 Satya Sadhan Chatterjee is
- Page 61 and 62: 61this Accountant but under conspir
- Page 63 and 64: 63informed the CBI that M/s Bihar S
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65name of his firm M/s Samarpan Vet
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67Husbandry Office, Sahebganj in th
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69In this respect, P.W. 16 Arun Kum
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71This accused has stated in this d
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73Authority, Patna in R.C. 45/96, S
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75The Account was opened in the nam
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77manufacturing medicine which was
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79that from the year 1990-96 no one
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8133. Accused Smt. Chanchala Sinha
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83any Branch at Sahebganj for carry
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85Officer-in-Charge Town P.S. Saheb
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87In the above circumstances, I fin
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89infirmities and discrepancies. He
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91has been shown by the Suppliers f
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93the firm was opened in his name b
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95Considering all these evidences,
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97sons are unemployed and pension i
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99period of one (1) year and also t
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101Rigorous Imprisonment for a peri
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103he shall further undergo Simple