An order restricting the Services personnel from buying cars priced over Rs 12 lakh from Canteen Stores Department (CSD) of the Defence Ministry has led to resentment amongst the serving and retired personnel with veterans seeking the rollback of the directive immediately. The restrictions will be enforced from June one this year. Earlier, there was no such cap if the vehicle was bought from CSD.
As per a letter issued by the Quartermaster General’s Branch at Army Headquarters on May 24, starting from June, only vehicles with an engine capacity of up to 2,500 CC and costing up to Rs 12 lakh (excluding GST) will be available through CSD for armed forces personnel in the pay level of 10-18.
The frequency of purchase as per the new directive has also been reduced to one vehicle in eight years. Earlier, it was once in four years.
Those in the pay level of 3A to 9 can purchase vehicles with a capacity of up to 1,400 CC that cost within Rs 5 lakh. The purchases can be made once during service and once after retirement, with the gap being eight years. Services personnel in uniform and civilians employed in Defence establishments are eligible for exemption from GST on the value of the car in addition to the regular cash benefits.
Justifying the restriction, officials said there was a need to regulate and balance the CSD budget since a major chunk was taken away by cars and other high-priced items. Moreover, the change in policy to extend subsidized CSD facilities to retired Defence civilians besides personnel below officer rank being also allowed to buy cars increased the burden on CSD budget, they said.
Terming this decision as ill-treatment, the veterans said such restrictions are not applicable to personnel of central armed police forces besides central and police organisations who avail of subsided facilities through Central Police Canteen (CPC). Moreover, the police personnel can buy cars of any price tag and capacity and time period is four years, they said adding the new rule will affect the morale of the armed forces personnel as many young officers aspire to buy SUVs and other such vehicles priced beyond the Rs 12 lakh tag.
The Indian Ex-Servicemen Movement (IESM), which is leading the campaign for One Rank, One Pension (OROP) and is one of the biggest groups of former servicemen, has written to the Army headquarters, calling for a rollback. It added that the new policy is against the terms and conditions of service.
“The customers are paying cost of the vehicle before delivery, then what is the need of funds. CSD neither purchases cars nor stocks cars like grocery items,” it said.