An internal audit report of the Defence ministry has detected a loss of over 100 crore rupees in spendings by six army commanders between 2009 and 2011. The army, however, contested the loss of 100 crore rupees in procurements and insisted that no rules have been violated. The Defence Ministry had ordered the Controller of Defence Accounts (CDA) to audit expenses made by the army commanders under their special financial powers of up to 125 crore rupees to procure urgently-required items for troops.
Ministry officials said efforts are being made by the Defence minister to streamline the entire financial management system of all the departments under the ministry. The Army said it has already responded to observations raised in the audit report of the ministry and no observations have been found to be true.