"We have formed a Committee under Lt Gen Vinod Bhatia, who is Director General (Infantry) to look into the winding up of the Technical Support Division (TSD) against the backdrop of snooping allegations against it," highly-placed army sources said here.
The TSD was formed during the tenure of Gen V K Singh and its existence came to light in March this year when it was alleged that the unit had tapped the phones of Defence Ministry officials at the height of the controversy over the army chief's date of birth.
On excess expenditure of over Rs 25 crore by the Military Intelligence wing, they said the Army will reply to certain observations raised in the internal audit by the Army Headquarters.
The process to disband the TSD was initiated recently after the new army chief took over. The TSD was reporting directly to the then Army Chief and it was alleged that it may have snooped into the conversations of people even outside the Defence Ministry using its off-the-air interceptor equipment.
In recent times, reports have suggested alleged misuse of MI funds by the Army headquarters.
Asked about the outcome of the Army probe against Malegaon-blast accused Lt Col Shrikant Purohit, sources said the probe was still on and no conclusions have been reached by the force so far.