POLICY ON PURCHASE OF CARS THOUGH CSD

Dated: 28 May 2019

Lt Gen Gopal R, UYSM, AVSM, SM
Quarter Master General’s Branch
IHQ of MoD (Army)
438, B Wing, Sena Bhawan
DHQ PO, New Delhi-110011

POLICY ON PURCHASE OF CARS THOUGH CSD

Dear General Gopal,

1. There have been numerous representations from Ex-Servicemen regarding the latest Policy on purchase of cars from CSD.  I take this opportunity to write to you for reconsideration of the Policy.

2. The new policy is against the terms and condition of Service and the facility given to Defence Personnel by the Govt.  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.  Implementation of new policy will adversely affect the moral of Defence Personnel as well as their efficiency since you are withdrawing the facility already granted to then.

3.  MHA has put no such restriction on CPOs for the purchase of Car.  Defence Personnel feel that they are being degraded, downgraded and ill-treated as compared even to the CPOs in their socio-economic status.  The following aspects need your attention please:-

(a) The policy states that other ranks can buy a car once before retirement and once post retirement. They can buy the car after six years of service and only once in his service career that means if the indl continues to serve till 30 years of service he has to use same car for 24 years of service. As per RTO guidelines the veh are registered for duration of 15 years. Though the car can be re registered after 15 years but that is neither economical nor in since with tech advancement. There for the time period for buying of car by other ranks needs revision.

(b) The policy doesn't cater for complete veh losses due to accidents or any other miss happenings.
(c) With the current financial status, earnings and aspirations of the officers, the officers are looking to buy cars in the range of 15 to 20 lakh. The policy caters for this range as of now as the GST rates are 28%. However apart from annual increases in price every year and with the coming of BS (VI) engine in Apr next year the prices are going to increase. Veh like XUV 500, Jeep Compass, TATA Hexa, TATA Hrrier which are the preferred veh will become out of reach because of the price limit given in the policy.

(d) The policy should also cater for annual increase in ceiling limit which should insinc with the annual increments and pay commissions given to all fauzis.

(e) There was no feedback taken from the environment before promulgation of the policy which would be affect Serving, Veterans, Widows and Veer Naries.

(f) The policy will lead to severe displeasure amongst the fauzis and veterans if implemented in present state and will require frequent amendments which will lead wastage of man hours in drafting and redrafting every now and then.

4.   In view of the above I request you to reconsider on the restrictions imposed on the purchase of Cars through CSD.  The aim should be to improve upon the facilities already provided to the Defence personnel and not take away existing facilities.

With regards,

Maj Gen Satbir Singh, SM (Retd)                                                                                                                    Chairman Indian Ex-Servicemen Movement (IESM)                                                                                             Mobile: 9312404269,0124-4110570   ,Email:satbirsm@gmail.com