Point by point rebuttal of CBI charges against Rajendra Kumar, Principal Secretary to Arvind Kejriwal

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Satyendra Kumar

Specific parawise responses to the allegations against Rajendra Kumar, principal secretary to Delhi Chief Minister Arvind Kejriwal and others in FIR No. RC No. 42(A)/2015-DLI filed by CBI u/s 120-B of IPC and 13(2) read with 13(1)(D) of Prevention of Corruption Act.

FIR against
Sh. Rajinder Kumar
Sh. A K Duggal, The then MD ICSIL
Sh G K Nanda, The then MD ICSIL
Sh R S Kaushik, MD ICSIL
Sandeep Kumar, Director of M/s Endeavour Systems Pvt. Ltd.
Dinesh Kumar Gupta, Director of M/s Endeavour Systems Pvt. Ltd.
M/s Endeavour Systems Pvt. Ltd.

Allegations
Rajinder Kumar, Secreatary to CM, promoted a company M/s Endeavour Systems Pvt. Ltd., since 2007 onwards by misusing his official position and facilitated tenders worth Rs 9.5 crores to the said firm.

Denied. Neither Mr. Rajendra Kumar nor any of his relatives howsoever distant was a director, shareholder or even an employee in the company Endeavour Systems Private Limited at any given point of time in past or present. The amount of order is a matter of record.

Allegation
Sandeep Kumar, one of the directors of the said co. is a relative of Ashok Kumar, who was earlier working under Rajendra Kumar.

Denied. Both are in no way related, even distantly and did not know each other before they came in contact with each other while working together in the Department of Education.

Also Read:‘What CBI & Media would not like you to know about Delhi’s Principal Secretary, Rajendra Kumar’

Allegation
Project related to MIS for Delhi Transco Ltd. Given to M/s Endeavour Systems from February 2010 to March 2011 by ICSIL without calling tenders or quotations. Payment of Rs. 40,61,465/- was made by ICSIL to M/s Endeavour Systems. The said proposal was initiated by Rajinder Kumar. At that time he was posted as Chairman, Delhi Transco Ltd. And Sri A K Duggal was the then MD of ICSIL.

Denied. Rajendra Kumar on behalf of DTL had asked for manpower from the ICSIL, a public sector company. Mr. Rajendra Kumar never asked for a particular company from where ICSIL could source human resources. ICSIL was also given service charge for arranging the manpower for working on projects of DTL.

It is to be understood that ICSIL is a company jointly owned by Govt. of Delhi and TCIL, a public sector undertaking of the Govt. of India. Central or State Govt. owned PSUs are routinely awarded work orders by the concerned client departments of the state or central Govt. due to the lack of requisite technical resources and expertise in the concerned client departments. ICSIL is paid a service charge in lieu of the services and due diligence done by it.

ICSIL neither comes under DTL nor is ICSIL MD answerable to DTL in any manner. Therefore, there is no question of any influence being exercised by DTL on ICSIL. ICSIL must have chosen the vendor based on some parameters as tendering of qualified manpower is not possible. Engineering, Management and Law Graduates with 3 years of professional experience command salaries ranging from 8,000 per month to 8 lakhs per month or even more depending on their individual skills and performance parameters despite having the same educational qualification.

Allegation
Project related to manpower for Health and Family Welfare Department, Delhi was given to M/s Endeavour Systems in 2010 by ICSIL, without calling any tender or quotation. Sri Rajinder Kumar, vide his email dated 20/10/2010 sent an attachment to MD ICSIL wherein salaries are quoted against individual posts. The quotation provided by M/s Endeavor to MD ICSIL subsequently were exactly same salary mentioned therein for individual posts, even qualifications and work column similar to the said email of Rajinder Kumar. The said email of Rajinder Kumar also mentioned that he would also send a formal request after informally knowing the final costing part.

Denied. Same as above. Besides, the Department must have been prepared at that point of time to give a particular salary and that would have been indicated in his email. ICSIL might have asked companies including Endeavour to work on that salary and that must have been acceded to. Again, Health Department does not have any administrative control over the ICSIL and hence no case of influencing by Mr. Rajendra Kumar can be made out.

Allegation
Sri Ramesh Chugh, State Programme Officer of Delhi State Health Mission, vide his letter dated 10/11/2010 requested MD, ICSIL, to provide manpower for e-projects. The rates so quoted by M/s Endeavour were communicated by ICSIL to Ramesh Chugh, who in turn communicated to ICSIL vide letter dated 1/12/2010 that the competent authority has approved the rates provided by ICSIL. An amount of Rs. 2,43,81,594/- has been paid by ICSIL to M/s Endeavour. At that time, Rajinder Kumar was Secretary to health department and A K Duggal was the then MD, ICSIL.

Denied. ‘Delhi State Health Mission’ does not recognize Endeavour. It only recognizes ICSIL. Any rate communicated by ICSIL would naturally and normally be agreed upon by the “Delhi State Health Mission” unless it has in-house expertise in this matter. Again, there is no question of influence as ICSIL does not come under “Delhi State Health Mission” directly or indirectly. The amount is a matter of record.

Allegation
Information reveal that the work order for project related to enterprise resource planning for Delhi Jal Board was given by ICSIL to M/s Endeavour through open bid. Criteria was such that M/s Endeavour could only participate. In retendering, only 2 companies participated. Tender were opened on 25/8/2014. MGRM tender was rejected on technical scrutiny. Work order of 2,47,55,155/- was given to M/s Endeavour at the initial stage. Rajinder Kumar was Secretary to CM and R S Kaushik was MD of ICSIL.

Denied. There were hundreds, if not thousands, of companies inside India who would be eligible to qualify the tender criteria. In fact, it is not possible to draft a tender condition that would include a small company like Endeavour and excludes everyone else. Besides, it would be pertinent to mention that NSDL, a PSU did a study of the software requirements for the department, and estimated the software cost to be Rs. 20 Crores, whereas, the work was awarded for Rs. 2.456 crores only, almost one tenth the estimated cost.

Mr. Rajendra Kumar has never worked in DJB and therefore there is no question of him being able to influence its procurement decisions.The work was awarded during President’s Rule, so there was no question of anybody being a Secretary to CM as no CM existed as on 25/8/2014 when the tenders were opened.

This was in contrast with the earlier order for software development and implementation awarded to TCS for more than Rs. 50 crores, much in excess of the estimates, against which nobody has yet raised a question.

Allegation
On the request of Trade and Taxes department, Delhi, ICSIL issued open tenders for the project of system development and implementation. M/s Endeavour submitted the last bid. Time was extended, 2 more companies gave bid. Tender was given to M/s Endeavour. Rajinder Kumar approved the proposal of ICSIL to award the tender on 15/10/2012 and very next day, he was released from the charge of Commissioner, Trade and Taxes. On 5/12/2012, Additional Commissioner – Trade and Tax pointed out several discrepancies. The development work for the web site was for Rs. 2,33,00,000/- where- as the maintenance charges were given at the rate of 1,33,00,000/- per annum. G K Nanda was MD ICSIL at that time.

Denied. There is no allegation in the point because as per the point, an open tender was floated.
The work did not pertain to a development of a “website”, but was for the ERP implementation. The two are poles apart. As Endeavour was the only bidder, timing was extended, which was the right thing to do.

After extension of time, three parties participated and Endeavour came the L-1. Mr. Rajendra Kumar approved the ICSIL proposal on selecting the L-1 and that was the right thing to do. Next day he was released from the Department. He had no role in this.

The department might have raised some questions, and it is sure, that they would have been answered satisfactorily, otherwise, the new commissioner would not have awarded the work. Mr. Rajendra kumar, though, approved the L-1, did not actually award the work order, which was done by the new commissioner.

It would also be pertinent to mention here that the implementation cost of Rs. 2.33 Crores was way below the amount of money estimated and sanctioned by the Government of India under mission mode project of NEGP. A lot of money was returned to the Govt as it was saved (National E Governance Programme). Some other state Govts. have paid this much money only for conducting the requirement study and floating of RFP to consultants. Normally a state would spend multiple times the money in implementing the same.

There is nothing unusual about maintenance cost of a service being around 50% or more than the development cost of a software.

More so, if 10 persons are required to be deployed routinely and regularly. Furthermore, in this contract, maintenance also included implementing all the changes required by the department. In fact, the entire software had been written at least 4 times since it was first deployed. Any knowledgeable person in IT would know that any big company would, first of all not agree to unlimited changes after deployment, and even if it agrees, the cost would be multiple times the original cost.

Allegation
The project of facility management system of Trade and Taxes department, in response to the tenders, 4 bidders responded. G K Nanda, MD ICSIL scrapped the tender on flimsy ground as M/s Endeavour was not the L-1 bidder. Thereafter, tender was awarded to M/s Endeavour Systems without floating tender, by R S Kaushik. Amount of Rs. 45,50,493/- was paid to Ms/ Endeavour by ICSIL.

Denied. Rajendra Kumar could not have had any role in this, as he was not in the Trade and Taxes department during the period of allegation. Although, the facility management ought to have been given to Endeavor, as the maintenance work is supposed to be given to the OEM (original equipment manufacturer) as per the GFR, which in this case was Endeavour because the original software was developed by Endeavour Systems.

Allegation
Rajinder Kumar, Secretary to CM, A K Duggal, G K Nanda, both MD of ICSIL, R S Kaushik, MD ICSIL, Sandeep Kumar and Dinesh Kumar Gupta, both Directors of M/s Endeavour Systems and other unknown public servants and private persons conspired to commit the aforesaid offenses.

Denied. No conspiracy can be implied or inferred or derived in view of the explanations furnished above. Moreover, It has been seen in the replies in para 6 and 7 above that the work was awarded at a fraction of costs estimated by the independent Govt. agencies. Any undue personal benefit would accrue to any interested person only by making the size of the pie bigger and not by substantially lowering the cost than the pre-approved estimated cost.

A picture has been painted as if Rajendra Kumar gave all the orders to Endeavour through ICSIL. However, seen in proper perspective, it can be clearly understood that in the 7-8 years, the Departments headed by Mr. Rajendra kumar would have issued thousands of work/service orders, of which, Endeavour got only 2 or 3. Similarly, ICSIL would have done hundreds of work, of which Endeavour got only four. Similarly, Endeavour has also worked for so many companies including the best in the world like Microsoft, Ernst and Young etc. whereas they got only four orders from the ICSIL, even though normally the companies, particularly in IT services area, have a tendency to specialize in a domain and create a niche market for themselves.

The author is a senior executive in a private firm and went to same school where Rajendra Kumar was his senior. Views expressed here are his own.

3 COMMENTS

  1. Great job. Please continue doing it. Without data and facts, it is difficult to fight public perception. When the whole media has made it its mission to prove Rajendra as corrupt, it is good to know that there is atleast one website and writer who is mentioning facts which are deliberately ignored by the main stream media.

    Great job JKR and Satyendra Kumar

  2. WOULD LIKE TO REQUEST THE AUTHOR TO CHECK THE FACTS. THE FIR CLEARLY SAYS THAT THE EMAIL IN CASE OF MANPOWER SUPPLY FOR HEALTH AND FAMILY WELFARE DEPT WAS SENT TO ED ICSIL AND NOT MD ICSIL AS STATED ABOVE. ENDEAVOUR LATER SENT THE SAME QUOTE AS WAS GIVEN TO ED ICSIL, TO MD ICSIL. PLEASE WRITE TRUE FACTS

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