Stung by the Adarsh Housing Society scam, Defence Ministry is mulling action against its personnel and society promoters, including recommending probes by CBI and Income Tax, apart from complete take over of the building or demolishing it citing security and environment concerns.
Defence Ministry sources said here today that it was awaiting a report from Navy Chief Admiral Nirmal Verma, who is expected to give it tomorrow, after which an informal expert group of ministry officials would meet over the weekend to take a final call on the punitive action in the case.
"A final decision on the punitive action will in all probability come before November 8, a day before the winter session of Parliament begins," the sources said.
"Among the options for action were ordering an internal vigilance inquiry or seeking a CBI probe as some retired officers and civilians too are involved in the episode. The departmental vigilance can also independently probe or recommend a CBI probe," sources said.
That apart, the Ministry could "ask the Income Tax department to go after the money trail" in the investments made by the Housing Society members to construct the 31-storey, 100-metre tall building in the upscale Colaba area overlooking sensitive military installations including a naval air base.
It could also "make the scam an example" of how the government would come down upon corruption by "completely taking over the building" and putting it to use as residential quarters for its serving officers, as there was a shortage of accommodation for military personnel in the metropolis.
"In such a scenario, the Ministry could use the land acquisition provisions to deny any compensation to the promoters as a punitive action, which is provided under the laws," the sources said.
If the ministry took a lenient view on the money pumped in by the promoters for constructing the building, all legitimate expenses could be paid as compensation, they said.
In case a stricter view prevailed, then the ministry could invoke security concerns to "completely demolish" the structure or part of it citing environment regulations, they noted.
An initial probe ordered by Defence Minister A K Antony had concluded that there "prima facie" was "a criminal conspiracy" by defence personnel, who had "colluded" with the promoters to alienate the 6,490-sqmt plot of land that was in "de facto" possession of the Army since early 1940s.
The Army and the Defence Estates Directorate have already submitted their reports to Antony and it has been fully studied to arrive at preliminary conclusions, sources said.
In the 104-apartment building, that had provision for flats for Kargil widows and martyrs' families, about 40 were found to be allotted to Army, Navy and Defence Estate personnel, both serving and retired, apart from politicians and their relatives.
Among the allottees were former Army Chiefs Gen Deepak Kapoor and Gen N C Vij, former Navy Chief Admiral Madhavendra Singh, former Union Minister Suresh Prabhu and relatives of Maharashtra Chief Minister Ashok Chavan.
Some of the allottees from the services and defence estates were also part of the chain of command that had "colluded" with Adarsh Society promoters to alienate the land from the Army's possession, which had used it as a training ground till 1999-2000.
On the action that could be initiated against serving personnel, the Ministry sources said the they could face action under "conduct rules" for which a show cause notice would be issued.
In case of Army and Navy personnel, the respective services could order a court of inquiry and later take disciplinary or administrative action, which could range from a court martial to recording of displeasure in service records, if their guilt was proved in "colluding" with the Housing Society promoters.
The Army has already indicated that it was all set to order a court of inquiry into the role played by serving officers on "how and when" they "colluded" with the society promoters to transfer possession of the land and "allowed" construction of the building, which began in 2003.
For those officers, who had retired meanwhile, the Ministry could ask the services to invoke Section 123 of Army Act or the relevant section under the Navy Act to order a court or inquiry and later a court martial, provided these officers' retirement had taken place within three years of cause of action in the scam.
For other officers, whose retirement had exceeded the three-year limitation period, civilian criminal laws would come into play, such as a probe by CBI or Income Tax, they added.
