DEALS: The Right Way ... And The Wrong
 
The Planning and Perspective Directorates in each force assess equipment needs and draw up qualitative requirements.

Maj-Gen P.S.K. Choudhary
As ADG (weapons and equipment), he requisitions procurements and studies the trial and evaluation. The Tehelka tapes show him taking Rs 1 lakh plus a gold chain.

These are sent to the Weapons and Equipment Directorate (WED) which shortlists the equipment manufacturers.

Brigadier Iqbal Singh
Prospective Procurement Officer (PPO), Ordnance. Worked the chain and facilitated introductions. Received Rs 50,000.

The shortlist is sent to the Ministry of Defence (MOD) which calls for tenders and orders the force to conduct trials.

Maj-Gen M.S. Ahluwalia
Of the three additional director-generals in ordnance services, he looked after technical stores and was responsible for procuring domestic items. Promised Rs 50,000.

Selected companies now send the equipment for trial in Indian conditions on a no-cost, no-commitment basis.

Colonel Anil Sehgal
As director, DGOs, can at best make a recommendation but helped Tehelka meet other senior officers, including Ahluwalia. Received Rs 40,000.

A trial directive is issued by the WED. The equipment is sent for trial to the concerned command, which sends it to a unit. Teams from the School of Instruction and the DRDO are present. The Unit sends a report to command headquarters and the WED.
The MOD then sets up a price negotiation committee to draw up the financial terms and bargain with the vendor.
Once the price is fixed, the defence minister okays the proposal. If it is above Rs 50 crore it needs cabinet approval.