According to the report of the Comptroller and Auditor General of India for year ended March 2011, the Intelligence Bureau's 'Intelnet project' envisaged linking its headquarters with 22 of its offices in the country.
In 2008, IB decided to procure 72 encryptors for implementation of the project and its chief, in 2008, approved the purchase from BEL. The installation of devices were expected to be completed within seven months from the date of approval.
IB placed the supply order in September 2009 with the firm for procurement of 72 encryptors at a cost of Rs 2.93 crore and the delivery was completed between October and November 2009.
"The implementation of the project involved several actions including proper site selection for installation of equipment, procurement of hardware and leasing of telephone lines.
"Audit, however, noticed IB had failed to synchronise various activities related to the procurement process. Action for leasing of line which was one of the important process leading to to the installation was initiated only in June 2011, almost two years after the receipt of the equipment.
