Sunday, February 7, 2010

Circular 4--2010 & Report of SG

Dear Comrade
Circular 04-2010 is posted below.
Also posted below is Report of the SG as adopted by the 45th Conference
Yours fraternally
MS Raja
Secretary General



15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012

Ph: 0120-2881727/4101593/ 0 – 98681 45667



Reference: AIA/Circular-04/2010                                                            Dated: 7th February 2010



Dear Comrades,





               The 45th Conference of All India Audit & Accounts Association held at Jaipur from 2nd Feb to 5th February 2010 unanimously elected 15-member National Executive Committee.





 Post                               Name                                      Name of Office          


1. President                           M. Duraipandian       O/o AG (A&E), TN, Chennai

                                             Mob: 09789833552

2. Vice-President                    G.K. Gohain              O/o AG (A&E), Assam, Guwahati   

                                             Mob: 09435118213

3. Vice-President                    Subhash Chandra Pandey  O/o PAG (Audit), UP, Allahabad

                                                Mob: 009450738962

4.  Secretary General              M. S. Raja                 O/o PAG (A&E)I, Maharashtra, Mumbai

                                             Mob: 09868145667

5.  Addl. Secretary General    V Nageswara Rao     O/o PAG (A&E), AP, Hyderabad    

                                              Mob: 09912348233

6. Addl. Secretary General     V Sreekumar           O/o AG (A&E), Kerala, Thrisur         

                                               Mob: 09447254666

7. Addl. Secretary General     Jagdish Panchal        O/o PAG(Audit),Rajasthan, Jaipur

                                               Mob: 09460709966

8. Finance Secretary               Jagmohan Thakur     O/o AG (A&E), HP, Shimla       

                                                Mob: 09816035486

9. Asstt. Secretary General     VK Bhambhi            O/o AG (A&E), Gujarat, Ahmedabad  

                                                Mob: 09427303395

10. Asstt. Secretary General   Partha Guha             O/o PDA, Eastern/Metro Rly, Kolkata          

                                                Mob: 09432790883

11. Asstt. Secretary General   Veer Singh             O/o DGACR/AG, Delhi                      

                        Mob: 09999980228

12.  Asstt. Secretary General  KC Mathai               O/o AG (A&E)II, Maharashtra, Nagpur

                                                  Mob: 09422139787

13. Asstt. Secretary General   R. Venkataraman     O/o PAG (Audit) TN, Chennai          

                                                Mob: 09444877267

14. Asstt. Secretary General   Tapas Bose              O/o PAG (A&E), WB, Kolkata                                             Mob: 09433899246                                                       

15. Convener,  

    Women's Committee          VS Jaitha                  O/o AG (A&E), Kerala, Thiruvananthapuram                                       Mob: 09446551280

            The newly elected National Executive met immediately thereafter and decided to co-opt the following Comrades into the National Executive Committee as special Invitees. 


Special Invitees



1. Anindya Mitra, P&T Audit Assn, Kolkata - 09830378354

2. K Udayakumar, Commercial Audit Cat II Assn – 09444957333

3.Hemant Shrivastava, Gwalior Accounts Association, 09425778009 4.  Hari Singh Meena, Civil Audit Assn, Cat III, Jaipur - 09414336857

5.  Rajesh Parashar, Civil Accounts Assn, Cat II, Jaipur - 09413074966

6.  Ninakumari Kujur, Chairperson, Women's Committee, AAO Assn, Bhubaneswar - 09338685256                                                            

7.  Nagendra Mohanty, Orissa Accounts Association - 09937951568

8.  BV Hareesha, Accounts Cat III Association, Bangalore - 09448236866

9.  VD Khaparde, Accounts Cat II Assn, Nagpur - 09423683746

10.  Rajkumar Shahani, P&T Audit Cat III Assn, Nagpur - 09970171636

10. Virendrakumar Shukla, P&T Audit Cat III Assn, Lucknow - 09415093696

11.   BC Dhyani, Accounts Brotherhood, Dehradun - 09997333464

12.   Noel Riphat, AAO Association, Punjab, Chandigarh – 09888551044

13.   SK Vyas – 09868244035


               With greetings,


Yours fraternally





Secretary General




15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012

Ph: 0120-2881727/4101593/ 0 – 98681 45667








Adopted by the 45TH Conference of


 Held at Jaipur from 2nd February 2010 to 5th February 2010


Dear comrades,


            At the outset, on behalf of the National Executive Committee let me greet you all to the 45th conference of All India Audit & Accounts Association being held at the beautiful city of Jaipur, the Capital of Rajasthan from 2nd February 2010 to 5th February 2010.


            I am submitting this report on activities – on behalf the NEC- since the last Conference at Chennai held from 8th January to 11th January 2007 for your consideration, critical assessment and analysis and for adoption. I would welcome an open and healthy discussion, leading to improvements in the report that would be the real hallmark of this Conference. In another sense, the quality of discussion that this report would generate and cause would be a measurement of our organisational maturity.


When we met last at Jaipur in 1959, we were a de-recognised Association with a compulsorily retired Secretary General. Dark days were ruling the roost. The audit bureaucracy- die-hard it is always – never knew what democracy is, what compassion meant.


Much water has flown since then. Much has changed. The bureaucracy has willy-nilly accepted the inevitability of Association in the Department, though some exceptions are there, here and there. But the core character – i.e. intolerance and arrogance out of total absence of spirit of democracy -   is still running high.


We are facing a major challenge in the form of heavy victimisation in Kerala where two of our comrades have been dismissed from service on concocted charges, hundreds have been heavily penalised and President of our Association in Rajkot has been kept under suspension for more than a year violating all existing rules. We would be discussing these issues separately elsewhere in this report.


We met in our 44th Conference at Chennai from 8th January 2007 to 11th January 2007. The Conference elected the following National Executive Committee.


Name                                                      Post

1. Com M. Duraipandian                                  President


2. Com. S. C. Pandey                                      Vice-President


3. Com. G.K. Gohain                                       Vice-president


4. Com. M. S. Raja                                          Secretary General


5. Com. Sitaram Singha                                    Addl. Secretary General


6. Com. V. Nageswara Rao                             Addl. Secretary General


7. Com. V. Sreekumar                                     Addl. Secretary General


8. Com. Vasant Bhambhi                                  Finance Secretary


9. Com. Jagmohan Thakur                                Asstt. Secretary General


10. Com. A. K. Sarma                                     Asstt. Secretary General


11. Com. A.S. Rawat                                       Asstt. Secretary General


12.Com.  K. C. Mathai                                    Asstt. Secretary General


13. Com. Anindia Mitra                                    Asstt. Secretary General                                  

14. Com. Udaya Kumar                                   Asstt. Secretary General            


15. Com.. Prava Sarkar                          Convener, Women's Committee 


The Conference also decided that the following comrades be made as special invitees to the National Executive Committee:


1. Noel Riphat  2. Keshav Kapoor 3. Kiran Gohra 4. Jagdish Panchal 5. CG Surve 6. KD Suresh 6. Gautam Pramanick 7. Partha Guha     8. KD Banerjee  9. Hari Shankar Tiwari 10. SK Vyas, 11. AB Sen & 12. Bhawani Pada Bhattacharjee. Com Keshav Kapoor took voluntary retirement and Com VS Jaitha was inducted as special invitee.                 

Com Prava Sarkar retired on superannuation with effect from 1st Jan 2009 and Com VS Jaitha was co-opted against the vacancy.


Com AS Rawat took voluntary retirement with effect from 1st August 2009.     


When we traverse from Chennai to Jaipur, we find certain harsh realities before us.  We met in the 44th Conference immediately after the setting up of 6th Central Pay commission and immediately after the submission of memorandum to the CPC. Today, CPC report has been implemented and we stand stranded with our reservations and opposition to the CPC recommendations not being properly channelised.

Also, we are meeting at Jaipur in the 45th Conference in February 2010 at a time when the world is reverberating with the after shocks of the economic recession that it faced in the preceding years and trying hard to overcome the catastrophe that it brought along.


The sub-prime crisis of US grew and engulfed the whole of the world economies irrespective of developed, developing or underdeveloped.  The fury of the crisis was born by the workers at large, across the world, who had no role in the making of the crisis. As those who have to ultimately suffer on account of the policy initiatives that permit loot by few, it is quite necessary to discuss and understand the economic policies that throw up such crisis and heap miseries.


This Conference will have to discuss and decide on the future course of approach with regard to multiple issues that we are facing as employees in IA&AD and in Central Government as also as wage earners like crores outside. The Resolution on Policy and Programme placed along with this Report deals in details on this.




Com CSV Warrier, former Secretary General (1981-88) of All India Audit & Accounts Association breathed his last on 12th November 2008 after a brief illness at the age of 78.


Com Warrier joined AG's office at Hyderabad (which was part of the then Madras State) and went to Port Blair in 1955-56 on deputation. He got   active in the Trade Union front, mobilized the employees & workers along with the legendary leader Com Prasad. On repatriation from Port Blair, Com Warrier joined AG's office Kerala in 1962. Within a short span of time he rose to the leadership and became President of the AG's office NGO Association in 1966-67. He led the heroic struggle against the tyranny of the then AG Kuriakose and successful one –day strike of C G Employees on19 Sept. 1968 and then led  the heroic 45-day strike of employees in Kerala against dismissal of Com Thrivikraman Pillai, the then General Secretary of AG's office NGO Association, Kerala in 1973. Com Warrier led the Kerala unit in the historic 1974 strike.


Com Warrier who was elected as Asst. Secretary General of All India Audit & Accounts Association in 1971 in the Trivandrum Conference worked as Vice resident and Additional Secretary General before taking over as Secretary General in 1981 at Ghaziabad Conference. He was reelected in 1986 at Bangalore. Com Warrier stepped down as Secretary General on health grounds in the CWC meeting at Jaipur in April 1988.


But for Com CSV Warrier's vision of developing a new set of leadership, it would not have been possible to wither and withstand the first ever major disruption in the 1990s (which still haunts the organisation) that the All India Audit & Accounts Association faced.


Also the concept of functioning from own building goes entirely to Com Warrier.  It was Com Warrier who initiated the process of owning own accommodation when he applied and got allotted a plot at Kaushambi in Ghaziabad (just few yards inside Anand Vihar ISBT). The vision matured and today we can proudly say that we have fulfilled it to a great extent.


The democratic and transparent functioning of Com Warrier is worth emulating. Even in the trying times after restructuring of cadres in 1984 Com Warrier kept the flag of internal democracy and total transparency flourish.


The formation of JAC with organised Accounts was the brainchild of Com Warrier so as to extend the higher pay scales to Accounts cadres including IA&AD.


We pay our respectful homage to the memories of Com CSV Warrier, the visionary leader and true democrat.


Com: KA Sundaram, the architect of Madras Civil Audit & Accounts Association and former Assistant Secretary General of All India Audit & Accounts Association passed away on 02.10.2007. One will remember the presence of Com KA Sundaram during our 44th Conference at Chennai and his address to the subject committee.


Com Y Paappen, former Additional Secretary General, All India Audit & Accounts Association and undisputed leader of Audit & Accounts employees of Kerala passed away on 13th November 2009 after brief illness.


Com Paappen was a leader with indomitable spirit. He was dismissed from service for participating in the 1968 strike and was later re-instated, was demoted as LDC in the aftermath of the struggle against dismissal of Com Trivikraman Pillai.


In the passing away of Com Y Paappen, the audit movement lost a very outspoken and outstanding leader. The void created by death of Com Y Paappen is difficult to fill.


Com AV Raman former President of Madras Civil Audit and Accounts Association also left us during this period.


We dip our flag in their memory.


Since the 44th Conference at Chennai from 8th January 2007 to 11th January 2007 many luminaries who left imprints in different walks of life passed away.


Shri R.Venkataraman, former President of India, Viswanath Pratap Singh and Sri Chandrasekhar, former Prime Ministers bid adieu to the world.


Comrade Harkishan Singh Surjeet, former General Secretary of CPI (M)  and one of the last links from freedom movement and a highly respected political leader, Com. E. Balanandan, former President, CITU and former Member of Politburo of CPI (M) and Com. Chitrabrata Majumdar, General Secretary of CITU and Member CPI (M) Politburo passed away during this period.

We dip our flag in their memory.


Senior political leaders such as Shri Kanshiram, founder of Bahujan Samaj Party and Shri Y.S. Rajasekhara Reddy, Andhra Pradesh Chief Minister expired during this period.


The Central Government employees' movement lost veteran leaders like Com. J.P. Choubey, General Secretary of AIRF and former Secretary, Staff Side (NC/JCM), Com. S K Dhar, fire brand leader of Loco Running Employees of the Railways, Com. Pathik Banerjee, former Vice President of the Confederation and Former President of ITEF and Com. Ajay Bhowmik, former Secretary of the Co-ordination Committee of West Bengal and former President of All India Civil Accounts employees Association during this period.


We deeply mourn their passing away and convey our heartfelt condolences.


Com Jyoti Basu, the seniormost and most respect politician in the country, left us on 17th January 2010. Com Jyoti Basu was the Chief Minister of West Bengal for 23 years without break. Founding ( and the last of the surviving) Member of Politburo of CPI (M), he is, till this day, the only politician to step down from the post of Chief Minister on his  own insistence on health grounds. The toiling masses of the country, especially of West Bengal, would miss him at a time when the West Bengal is facing one of the worst political violence instigated by one of the major political party in collusion with outlawed extremists/terrorists.  The void created by Com Jyoti Basu will ever be felt.


We dip our flag in memory of Com Jyoti Basu.


Many innocent lives were lost in mindless terrorist acts like bomb blasts in different parts of the country, terrorist attack in Mumbai in November 2008 and Maoist terror. We place on record our deep anguish over these terrorist acts and heartfelt condolences on the loss of thousands of valuable lives.


Many a comrades laid their lives in defence of secularism, in the fight for betterment of the lives of the downtrodden and in defence of the rights of the working people, in India as well as across the world. We condoles their death.


We dip our flag in memory of all those who sacrificed their lives for the cause of mankind.


We condoles the death of thousands who lost lives in natural calamities across the country during this period.


International Scenario


Since January 2007, there is little change in the correlation of forces in the global arena. But there are certain notable changes within certain countries, especially in United States of America.


Economically, the world saw a tumultuous period – the reverberations of which are felt till this day. The global melt down, as it is termed by the neo-liberalists, was waiting to come. This 'melt down' devastated many economies, many families and lives across the globe. The victims are who toil for their bread, for a decent living.


The crisis has demonstrated to everyone that the unfettered functioning of markets can bring disaster; hence even after the crisis is over, whenever it is, there will be much greater regulation of financial markets. The crisis has certainly destroyed the credibility of the neo-liberal ideology; and this will have a lasting impact even in the best-case scenario for the proponents of neo-liberalism.


During the last three years, world witnessed sharper division between the rich and poor countries.  Within nations which adopted the neo-liberal economic policies, leaving aside the socialist pattern of planned development, while the number of billionaires did increase billions of people were added to the list of people below poverty line.  The world saw the emergence of corporate power, omnipresence of finance capital and concentration of wealth in fewer and fewer persons.


According to the World Investment report, the transnational corporations from advanced countries had the huge share of Foreign Direct Investment in third world countries [i.e.,  about 84%]  The FDI inflow during 2006 had, the report states, reached $1306 Billion (56.2 lakhs Crores).   This was stated to be achieved though cross border merger and acquisitions made possible from the high rate of profit garnered by depriving the workers their rightful wages and social security benefits. 


The informalisation of labour, the withdrawal of all social security measures like pension, healthcare etc., monopolizing production process enabling spiraling prices of commodities, all advented with the active support of the ruling class, helped the TNCs to raise to unprecedented levels of profitability.  Most of the FDI has taken place through the reinvestment of the huge profits, garnered by employing unfair and foul means by the companies as evidenced from the observation in the report that the reinvested earnings being an important component of inward FDI, accounted for 30% of total inflows in 2006 touching about 50% in developing countries alone. 


Of the $865 Billion of FDI (37.1 lakh Crores), USA had the huge share of $217 Billion, followed by France(115) Spain (93), Switzerland(83), UK and Germany(79 each) Belgium(50) Canada (46) and Italy(43).  This was the extent of FDI in one year alone. Global FDI reached a new record high in 2007 reflecting the fourth consecutive year of growth with inflows of $1833 Billion, the previous record set in 2000 was surpassed by some $400 Billion.  All the three major groups of economies, developed countries, developing countries and the transnational economies of South East Europe and the Commonwealth of Independent States saw continued growth in FDI. Merger and acquisition are conceived as a means to reduce competition and thus increase profits.  6974 such merger took place in 2005-06 involving a sum of $880 Billion (Rs.6.2 lakh Crores).  The amounts involved in such transactions in the subsequent years were equally huge. 


Reports have revealed that the TNCs strengthened their grip over world economy, especially in the production of goods and services. The increased percentage of the sales of MNCs in 2006 was 16%, profit 10% and export 12%.  1/3rd of the world exports were by MNCs, ably assisted by the WTO to achieve this phenomenal feat.  The role of manufacturing sector declined, the services sector, accounted for 66% of the FDI flow in 2005.  The total assets of three major companies in 2006 were a staggering amount of $51,187 Million (Rs.2.2 lakh Crores).  India received $17 Billion (Rs.7.31 lakh Crores) in 2006, 15.3% more than in 2005 and $23 Billion in 2007.  Substantial FDI in automobiles, telecommunication, real estate and other service industries including large scale investments such as Vodafone, Oracle, Holcim and Matsushita also boosted FDI inflows.  The report has stated that more than a quarter of retailers surveyed opened their first store in India in 2007[CB Richard Ellis, 2008].  The total value of FDI assets in India in 2006 is stated to be $50.7 Billion (Rs.2.18 lakh Crores). There had been 163 acquisitions/mergers in India in 2006, which was 80 in 2004 and 126 in 2005.  Most of the developing countries have been compelled to provide concessions in the matter of taxation, repatriation of profits, infra-structure facilities and non-adherence to labour laws. The investment report 2008 has indicated that over the past 20 years, developing countries have opened water infrastructure industry to the private sector.  64 developing countries have been reported to have introduced private participation in the water supply enterprises.  Full divestiture of municipal water supply network is reported in developing countries like Brazil, Chile and Thailand with only Chile opting for a fully private system nation-wide.  It is stated that TNCs having three specific advantages over domestic private water companies, i.e., global knowledge, financial capacity and economic stability have garnered most of the projects of water supply privatization contracts.


This economic crisis or recession has shown to the world that how public money is used to bail out the financial system without compromising the interests of the owners, instead of resorting to large State expenditure through welfare measures that would definitely give a fillip to the lives of common man.


In a world of unprecedented wealth, almost 2 million children die each year for want of a glass of clean water and adequate sanitation. Millions of women and young girls are forced to spend hours collecting and carrying water, restricting their opportunities and their choices. And water-borne infectious diseases are holding back poverty reduction and economic growth in some of the world's poorest countries.

Beyond the household, competition for water as a productive resource is intensifying. Symptoms of that competition include the collapse of water-based ecological systems, declining river flows and large-scale groundwater depletion. Conflicts over water are intensifying within countries, with the rural poor losing out. The potential for tensions between countries is also growing, though there are large potential human development gains from increased cooperation.

These underlying inequalities, which can be compounded by policy distortions, are causing migration, both within and beyond borders. The starting point is that the global distribution of capabilities is extraordinarily unequal, and that this is a major driver for movement of people. Migration can expand their choices —in terms of incomes, accessing services and participation, for example— but the opportunities open to people vary from those who are best endowed to those with limited skills and assets.

As per the ILO's Global Employment Trends Report, the loss of employment would touch 51 million (5.1.Crores) and the unemployment is likely to touch the 19 Crore figure by the end of 2008.  Of the employed, 77.2% is said to be in the vulnerable category, having no social security benefit or trade union rights.  The report also states that 43.5% of them get wages below $2 per day and 16.4% gets even less than a dollar (one dollar =Rs 49/-) per day.  During the course of last 5 years, the prices of essential food commodities rose globally by 80% making a wage earner to spend about 60 to 80% of his earnings on food items alone.


According to the declaration adopted in the world summit on food security held at Rome on 16-18 Nov 2009, the number of people suffering from hunger and poverty now exceeds 1 billion. This is an unacceptable blight on the lives, livelihoods and dignity of one-sixth of the world's population. The effects of longstanding underinvestment in food security1, agriculture2, and rural development have recently been further exacerbated by food, financial and economic crises, among other factors. While strides have been made, the overall efforts so far have fallen short of achieving the Millennium Development Goals and the commitments of the World Food Summits.


One could see that this unequal growth and the consequent devastation of the employed and the poor due to economic recession caused changes in the political leadership in many countries, the only exception being India.


The economic recession and the resultant massive job losses in US led to an election result that would have been considered as a wild imagination or wild dream a few years ago – that somebody non-white, with a different religious tag winning the election of President with a massive margin. It would be too much to expect that this change – with the slogan of 'yes, we can' – would also herald a change in the internal as well as external policies of US. It would be quite difficult for any President in United States to change the economic and foreign policies (intrinsically overlapped). The stand of the US in the recent Copenhagen summit on climate change only re-iterates it.


But in the Latin America, the leftward swing continues unabated, despite US and its Western allies trying their best to arrest and reverse the trend. Of the countries in the region that went to polls during the period - Uruguay, Bolivia, Peru, Mexico, Brazil, Nicaragua, Ecuador, Venezuela except in Mexico where the election was marred by allegations of massive rigging of ballots, the US and its allies could not get any of their favoured get elected.


But the most reprehensible act of deposing the elected President Zaleya did happen in Honduras. The people of Honduras are continuing their fight against the judicial coup and other Latin American countries are helping them.


The Bolivarian alternative initiated by Hugo Chavez is getting momentum. This has led to a situation where more forces join Cuba to oppose exploitation and aggression and for an alternative economic policy. Following the foot steps of Venezuela under Hugo Chavez, Bolivia also nationalised its gas and oil wealth.


Cuba and Fidel Castro continues to inspire those fighting against imperialism. The hopes of the western powers of a Cuba after Fidel Castro have turned into an illusion. Fidel Castro has stepped down as President on account of falling health handing over the mantle to Raul Castro.


Blood letting still continues in Palestine, its population suffers on account of the worst inhuman actions of Israel which supported to the hilt by US led Western powers. The economic and at times physical blockade of Palestine, the butcher of civilian including women and children especially in the Gaza are not only against any international law but inhuman also. The forces that cry hoarse on human rights in China or Iran have no qualm to support the barbarianism perpetrated on hapless people of Palestine.


In our neighbourhood, the situation is quite fluid in Nepal. The massive unrest against King Gyanendra forced him to re-instate the elected the Parliament. The civil war situation with CPI (Maoist) waging an armed struggle to overthrow the monarchy was averted with seven partly alliance that led the movement for restoration of democracy entered into an alliance with CPI (Maoist). In the referendum to the constituent assembly that followed the agreement put the Maoists as the single largest party. The second and third positions were shared by Nepali Congress and CPN (UML). The Government with Push Kamal Dahal (Prachanda) as Prime Minister could not last long due to internal contradictions and the President from Nepali congress overruling the Prime Minister on the integration of liberation army into Nepal Army. Though alternative government has been formed under CPN (UML)'s Madhav Kumar Nepal, the internal strife continues unabated with Maoists creating obstructions. Unanimity is yet to be reached on new Constitution.


Pakistan is volatile as never before with Executive government having no control over the actions of many non government players who are calling shots in different parts of the country. Assassination of Ms Benazir Bhutto on the eve of elections saw that PPP led government is formed with the support of Nawaz Sharif led Muslim League. The split in the PPP- Muslim League alliance on the issue of re-instatement Iftiqur Choudhury as the Chief Justice of Supreme court led to the outster of Parvez Musharaff as President and Asif Ali Zardari becoming President. The armed conflict with terrorists and direct military intervention of US air force in Waziristan has created piquant situations. The overt and covert role of Pakistan military in training the terrorists is an accepted fact today.


Bangladesh saw a decisive regime change during this period. The Khalida Zia regime lost its legitimacy leading to military take over for a short period. In the elections that were held thereafter the Awami League led by Sheikh Hasina Wajed – daughter of Bangabandhu Sheikh Mujibur Rahaman – led alliance won a thumping victory. In the immediate neighbourhood Bangladesh is the only country that could be termed as somewhat peaceful.


In Sri Lanka, the ethnic crisis was dealt with highhanded military action causing death and miseries to people of Tamil origin. The Human Rights agencies under UN have termed it as genocide. Even now tens of thousands of people are kept inside barbed wires. It is hoped that the miseries of people of Tamil origin would addressed to.


China recently celebrated its 60th anniversary of its revolution in a very impressive manner.  It focused the world attention over the phenomenal growth of China as a global power.  It is expected that by 2020 china would surpass the USA.   In the context of it registering an 8% GDP growth in 2009 despite the global economic recession the said claim cannot be stated to be exaggerated.


In one of the first in the world, Bhutan's monarchy suo moto initiated democratic process and handed over the power to civilian government. One could only wish all the best to the nascent democracy.



The UN's Human Development Report places India at 134 (out of 158) below Bhutan and Loas, but 7 slots above another neighbour, ie Pakistan. Even war-torn Lebanon ranks at 83 in the said report. The health of children before 5 years is a real index of the 'progress' after near 2 decades of liberalisation – 46% of children below 5 years are underweight as per the studies!

This is the India after 63 years of independence, 58 years after declaring itself as sovereign democratic republic and more over, 18 years after the juggernaut of LPG policies started rolling.

The Arjun Sengupta report on the Conditions of Work and Promotion of Livelihood in the Unorganised Sector concludes that an overwhelming 836 million people (77% of India's population) in India live on a per capita consumption of less than Rs 20 a day. The report is based on government data for the period between 1993-94 and 2004-05. While the numbers rose by a staggering 100 million, the numbers of the new rich has also grown by 93 million. So, who are the ones who have actually benefitted from the boom in the economic growth of the country?

The middle class and the rich grew from 162 million to 253 million while the neo rich of 91 million. The middle class grew from 15.5 per cent to 19.3 per cent but the extreme poor have also benefited (274 to 237 million) – 43 million of them to be precise. Their per capita consumption has gone up from Rs 9 to Rs 12.

One is classified as absolutely poor if the per capita consumption is less than Rs 9 a day. However, if the per capita consumption is Rs 13 a day, then the individual is above the poverty line. So, the definitions of poverty are sometimes difficult to understand. The justification for economic reforms was supposed to be the trickle down effect but for those who live in trying conditions 10 years of economic reforms seems to have made little difference.

Confirming the Sengupta Committee's findings, the National Sample Survey Organisation's report on Household Consumer Expenditure in India, 2006-07, reports that the average Indian spends just Rs 440 or less in a month on food. It goes on to say much more, none of it heartening.

With all hype over the progress India has made since 1991 and 9% growth in 2007-08 and getting back to 7-8% this year, in 1991, when the 'reforms' process began, India was ranked 123rd in the UN's Human Development Index. Today, it proudly occupies the 134th place!

Capital Account Convertibility (CAC)


Contrary to what is agreed upon in the Common Minimum Programme (CMP) of reducing the vulnerability of the financial system to the flow of foreign capital, the government had proposed introduction of full capital convertibility. The Tarapore committee set up by the RBI recommended for such a course subjected to certain condition being fulfilled such as

a)                   Gross fiscal deficit to GDP ratio to be brought down to 3.5%.

b)                   Average inflation rate within 3 to 5%.

c)                   Debt servicing ration to be of 20%.

None of these conditions were fulfilled.   Still the proposal had been mooted time and again by the Prime Minister and the Finance Minister.  Many developing countries introduced CAC in 1980s to attract foreign direct investment. After the disastrous experience of some East Asian countries caution should have been the pass word.


  Basically CAC implies freedom to convert local currency into foreign currency & vice versa without any governmental restriction. It allows freedom to make investment in foreign equity or real estate in foreign land. It also permits conversion of local financial assets at market determined rate of exchange. The principal focus of CAC would be on trading of assets both financial and real. In other words it is permission to capital investment by foreign national without any restriction in our country. It is surprising that the government proposes the CAC at a time when they themselves admit that Indian low level of domestic savings is the biggest constraint for domestic investment. Except the rich who can take advantage of liberal capital account regime to park their funds abroad and earn a lot of money, it does not serve any other material purpose.


Special economic Zone (SEZ)


SEZ is a geographical region that has economic laws that are more liberal than the normal laws. It is conceived as means for increasing production for the purpose of export at a very competitive price. In fact it covers the earlier versions of Free Trade Zone, Export Processing Zone, Free Zone, Industrial Estate, Free Ports etc. Besides the liberal economic laws the entrepreneur of SEZ gets a variety of tax concessions. One of the earliest and famous SEZ was in China. The Govt. of India has given approval for a number of SEZs. According to World Bank estimate in 2007 there would be about 3000 projects of these types taking place in 120 countries. More than 500 SEZ have been proposed in India of which 220 have already been created, raising concern even for the World Bank about its sustainability.


In Indian context SEZs are built by mostly private entrepreneurs with large scale infrastructure support from the government and huge amount of tax concession. The SEZ have come to face opposition from various quarters mainly due to the reason that it displaces large number of people who depend upon agriculture for their livelihood. The displaced persons are not offered with any alternative livelihood and are given meager compensation for land acquisition whereas the promoters would get the land cheaply and can make a fortune out of real estate development alone. As per the stipulation made by the Govt. of India the promoters are required to utilize only twenty five percent of the land for industry and rest seventy five percent for other commercial purposes. Coupled with the large amount of tax concession SEZs would be a strain on government's revenue resources. The government has to be compelled to amend the Rules on land utility as also withdraw some of the tax concession offered to the promoters for setting up the SEZ.


Price Rise & Food Security


The drought situation in India has gravely imperiled the lives and livelihood of crores of families in over fifty per cent districts across the country. The urgency of drought relief measures on an emergency basis arises from the reality that large numbers of Indian are already living on the edge, victims of malnutrition and hunger.


The International Food Policy Research Institute (IFPRI)'s Global Hunger Index (GHI) estimate ranks India at a low 66 out of the 88 developing countries, with a worse score than many Sub-Saharan African countries, with a GDP lower than that of India. The situation of malnutrition and food insecurity is further exacerbated by the utter failure of the Central Government to control the relentless price rise of essential commodities. The prices of rice, wheat, edible oil, salt have increased by 12 to 20 per cent and in the cases of some vegetables by over 100 per cent. The prices of commonly used daals (pulses) like Arhar (Tur) have doubled and are sold at between 80 to 100 rupees a kilo. Sugar is today the most bitter commodity in the market at thirty rupees a kilo. High prices have led to increasing food insecurity because families are forced to cut down on their food intake. In particular, poor women and girl children are the worst affected.


Food security is defined by the Food and Agricultural Organisation as 'Food security for a household means access by all members at all times to enough food for an active, healthy life." According to this definition a large majority of people in our country are food insecure.


It has been conclusively shown through evidence backed by NSS data that the targeting system started in 1996 has excluded large numbers of the poor. For example over half of agricultural labourers are excluded from the BPL category. Over half of dalit and tribal communities are also excluded.


The current average national poverty line according to the Planning Commission is only around 11.80 rupees per person per day for rural areas and 17.80 rupees per person per day for urban areas. These are clearly not poverty but destitution levels. And yet, anyone earning above these levels is considered ineligible for the subsidy. Under pressure from the Left and almost all political parties, a Committee was set up to relook at poverty estimates. Headed by Dr. S. Tendulkar the Committee is said to have recommended a methodology which would increase rural poverty from the current levels to around 42 per cent and the urban poverty estimates would go up to 26 per cent. It is not known whether the Government would accept these estimates


Even though this would mean a substantial increase and benefit a larger number of people, as far as food security is concerned it would still exclude a substantial number of families from a basic right. Considering that the vast mass of our people in both rural and urban India earn their living through the informal sector where there is no guaranteed income, the urgent requirement is for a universal system which would cover these sections. The central Government's National Commission for Enterprises in the Unorganized Sector has itself admitted that the vast number of unorganized sector workers require social security.


Increase in prices of essential edible items in Delhi is as follows:



Price in 2004

(Rs/per Kg/litre)

Price in Jan. 2010

(Rs./per Kg/litre)




Wheat flour






Moong Dal



Chana Dal






Mustard Oil



Groundnut oil













Free Trade Agreement amongst ASEAN countries & its impact on India


The ASEAN free trade agreement which the Government of India entered into in September 2009 and which has come into force from 1st January 2010 has triggered widespread protest amongst the farming communities in Kerala, Karnataka, Tamil Nadu and North East regions.


There had been intensive agitational programmes in the State of Kerala participated by all sections of the people due to genuine apprehension that the agreement was conceived to protect the Indian trade interest at the cost of farmers cultivating Coconut, Tea, Coffee, Pepper, etc.  The Govt. of Kerala has taken strong exception for entering into an agreement which would jeopardize the livelihood of the farmers of that state.  The allegation made by the State of Kerala has not been totally disowned by the Government of India.  It is rightly noted that the Free Trade Agreement with South East Asian Nations was a prologue for effecting stand in the next round of discussions at the WTO.  The proponents of the neo-liberal economic policies had all along been claiming that a free trade would in the long run help the Indian economy.  India entered into a bilateral free trade agreement with Sri Lanka a few years back.  The impact that it has created on Indian agriculture especially of the States like Kerala and Karnataka is well known.  One agreement with Thailand in this regard also does not give a different story.  Suffice it to say that in the year 1991 i.e. the year in which the neo-economic policies were ushered in the Indian trade deficit was less than 6 billion dollars which rose to about 120 billion in 2008.  In the case of ASEAN countries we had a trade surplus of 81 million dollars in 1991 which has become a deficit of 7265 million dollars in 2008.  There had been no discussion on this important and vital issue either inside or outside the Parliament.



FDI in Retail Trade

The opening of retail may adversely impact the 1.3 crore small retailers. India has over 8.5 million kiranas spread across 5,500 towns and 6 lakh villages, whereas modern trade penetration is limited to only the 125 cities. Only a small proportion of general trade, which is in close proximity to modern trade, would be partially affected by FDI in retail. The refusal to restore capital gains tax in the stock market and stop the massive tax evasion through the Mauritius route is meant to help Indian and foreign speculators reap huge profits. The backdoor entry of FDI in retail trade is jeopardising the livelihood of lakhs of small shopkeepers and traders

Indian laws allow 51 per cent FDI for single brand retail, while 100 per cent FDI is for the cash-and-carry business. Global giants such as Wal-Mart and Metro Cash & Carry have entered through the 100 per cent FDI route, while French retail chain Carrefour SA plans to open its first wholesale cash-and-carry outlet in India by early 2010.


According to the Fourth Economic Census, 1998 out of a total of 18.27 million nonagricultural own account enterprises (enterprises normally run by members of a household without hiring any worker on a fairly regular basis; hereafter OAEs), which constituted 68% of all non-agricultural enterprises, retail trade dominated among all major activity groups netting 8.36 million OAEs accounting for 45.8% of the total number of OAEs. In rural areas retail trade accounted for 42.5% of the total number of OAEs while in urban areas it accounted for 50.5% of the OAEs. Retail trade also accounted for 27% of the total non-agricultural establishments, with 18% of the establishments in rural areas and 34.3% establishments in urban areas being engaged in retail trade. A state-wise breakup of the distribution of non-agricultural enterprises in India shows that for most of the states retail trade accounts for the largest share of nonagricultural enterprises. In 1998 employment in retail trade (11.18 million) constituted 41.6% of the total employment in OAEs (see Chart 2 in Annexure). In rural areas retail trade accounted for 38.2% and in urban areas 46.4% of the employment in OAEs. Retail trade also accounted for 7.36 million workers in non-agricultural establishments accounting for 10.3% of employment in non-agricultural establishments in rural areas and 17.4% in urban areas.


A comparison between the Economic Census of 1980 and 1998 further shows that the share of manufacturing in non-agricultural enterprises declined in the rural areas from 39% in 1980 to below 25% in 1998 and in the urban areas from 30% in 1980 to less than 17% in 1998. Employment growth in the manufacturing sector has been less than 5% during this period. In this context the retail sector, especially the unorganized retail sector, has played a crucial role in the absorption of labour.


 Election to the Lok Sabha


Despite all these the ruling Congress-led UPA stormed back to power correcting all predictions for a hung Lok Sabha in the elections held in April-May 2009. The irony is that Manmohan Singh led government could appropriate the results of the fight the Left parties relentlessly waged for four and half years against disinvestment, privatisation etc and for pro-people policies that ensured waving of farm loans and introduction of – though in a limited way – National Rural Employment Guarantee Scheme. The fact that economic recession the world over did not affect with the same ferocity as it affected others stood in good stead for the government. The working people forgot that the government would have sold out every public sector undertaking and allowed foreign equity in banks – including nationalised ones – but for the stiff opposition of CPI(M)-led left parties.


Common front of Central Government Employees


The activities or lack of it in the years 2007 and 2008 were dictated by existence 6 CPC and its report while the year 2009  was taken care of the helpless situation the movement was placed into.


There was unanimity amongst the Staff Side of National Council, JCM till the Memorandum to the SCPC was finalised and submitted. But this unanimity couldn't be carried even upto or during the oral submission to the SCPC. The disunity, though not displayed openly, on the issue of demanding Interim Relief was a pointer to the events that may unfold in the days to come.


It is a fact that routinely and religiously, the Staff Side did submit a memorandum to the SCPC on IR also. But this was not placed forcefully during the oral submission. Even afer the Chairman of SCPC making it clear that he has no intention whatsoever to grant an interim relief as demanded by Staff Side, the Convener of Joint Council of Action did not move to call a meeting of the JCA even.


Though Confederation sincerely, at that point of time, tried to develop a common movement of all concerned on the issue of Interim Relief, it failed to elicit positive responses from major organisations outside Confederation. When Confederation decided to embark upon an action on its own, the sectoral demands did overtake the common demands and ultimately a move for a limited strike action in April-May 2007 had to be abandoned.


This failure to force the government and then the SCPC to grant IR had a telling effect on the total pay package that was to be awarded by the CPC.


Compare it with 5 CPC. The announcement of CPC itself was accompanied by across the table grant of Rs 100/- as IR. The demand backed by agitation forced the government to refer to CPC on the quantum of second IR and 10% IR was recommended by CPC, followed by a 3rd IR which was to be finally absorbed. In all, from the date of announcement of Pay Commission to the date of submission of CPC report the employees got an increase of not less than 26%, which was further got enhanced with change of fitment formula to 40%. This time in the 6th CPC the singular failure of the Staff Side to force the government and thereafter the CPC to grant the IR limited the overall increase to the irrational 40% as fitment formula.


Confederation, in 2007, tried to build a movement based on the issues like down-sizing, contractorisation, privatisation and demanding filling up of all vacancies. Detailed instructions were issued to Affiliates and details were sought. But neither the action plan on this did work for want of proper and timely response, or action on IR could materialise. It is quite necessary to introspect what went wrong and with whom. Glossing over on the basic issues would definitely lead us to walk into the same track and lost on the way.


Confederation organised one day strike on 30th October 2007, jointly with All India State Government Employees Federation. The one day strike on 30th October 2007 was preceded by a National Convention of Central, State, State PSU employees and Teachers at MPCU Shah auditorium at Delhi on 13th October 2007 which adopted a declaration with the following charter of demands.

Charter of demands

1.       Scrap the PFRDA Bill and Cancel appointment of the Pension fund Managers; Introduce statutory pension scheme for the new recruits; 

2.       Grant full Trade Union rights including the right to strike to all Government employees through appropriate legislation;

3.      (a) Stop downsizing the Government departments, privatization and contractorisation/ casualisation of Governmental and teaching functions.   Stop contractual appointments of teachers and workers, regularize all daily rated, casual and contingent employees

(b) Lift the Ban on recruitment and fill up the existing vacancies of all Government departments, educational institutions and State undertakings; Provide job to jobless

4.     Grant Interim relief of minimum of Rs.1000/-/ to all Central Government employees. Implement the 6th CPC recommendation with effect from 1.1.2006.

5.       Bring down the abnormally rising prices of essential commodities and strengthen subsidized public distribution system.

6.      Merge of 50% DA with basic pay with all consequential benefits and release of all DA instatements to the State Govt. employees.

7.       Withdraw the 5% cap and other restrictions on compassionate appointment. Restore the compassionate appointment scheme wherever it stands abolished.

8.       Stop the proposal to replace the CGHS by Medicare insurance scheme.

9.       Implement all pending awards of the Board of Arbitration.

10.     Remove the quantum ceiling on Bonus and grant bonus to all.

11.    Set up a Judicial Committee for wage revision of Grameen Dak Sewaks in    replacement of Nataraja Murthy Committee.

12.    Increase GPF& Small Savings' interest rates and restore to its early level.


The strike action evoked very good massive response from the Central Government employees.


The National Executive of Confederation that met at Mumbai in March 2008 decided the following

a)     There should be no compromise as to the date of effect of the 6th CPC i.e., it must be 01.01.2006.

b)     The minimum wage should not be less than the need based minimum wage computed on the basis of the norms fixed by the 15th ILC including Dr. Aekhroyd formula.

c)     That the minimum rate of increment should be 5% as demanded by the Staff side in its memorandum on common issues;

d)    That point to point fixation should be the methodology to fix pay in the revised scales of pay;

e)     That the revised rates of allowances should also be admissible w.e.f. 01.01.2006;

f)      That the Performance related pay system being divisive and a tool for exploitation is not acceptable and should be rejected, if recommended;

g)     That no departure from the existing statutory Pension scheme should be allowed and the new contributory pension scheme introduced for employees recruited on or after 1.1.04 should be withdrawn;

h)     That there should be no privatization of health care system (CGHS, CSMA etc) and the proposed introduction of Medicare insurance scheme should not be in replacement of the existing scheme. Instead the existing CGHS should be strengthened and all pensioners be covered by either CSMA Rules or CGHS.


It was further decided that Confederation would organise independent action including indefinite strike, if the basic concerns stated above are not addressed.


6 CPC Report & After


The much awaited report of 6 CPC was submitted on 24th March 2008. The report was, as feared, a sugar coated bitter pill. It goes to the credit of the Confederation that the first authentic, critical analysis of the report of the 6 CPC could be issued by the Confederation on 25th March 2008 itself.


Initially, there was anger and desperation amongst large section of employees. The fitment formula was quite unscientific, the report was totally biased in favour of Gr A officers, the minimum wage concept was accepted but mutilated beyond recognition while adopting and computing the minimum pay scale, the abolition of Gr D posts etc had generated a situation where we could have mobilised the employees for an action.


The Staff Side in the JCM did not show any urgency to discuss the matter and to generate sanctions to force a discussion and settlement on issues raised. The Secretary, Staff Side wrote letters highlighting the issues, the discrepancies, the deficiencies etc.


Confederation in its National Executive meeting held on 27th April 2008 identified the issues and decided to organise the employees on the following demands


1. No abolition of Gr. D Posts; No contractorisation of Group D Functions; No Corporatisation of Govt. Departments; No outsourcing or downsizing; lift the existing ban on recruitment; fill up all posts; do not abolish posts.

2    Scrap the new pension scheme; No privatization of pension payments.

3    Restore commutation of pension after 12 years.

4    No privatization of health care; No medi-insurance scheme; Extend CCS (MA) rules to Pensioners; strengthen CGHS.

5    No introduction of PRP based salary system.

6    Grant minimum wage as per ILC norms; reduce the disparity between minimum and maxim salary by maintaining 1:10 ratio.

7    Increase the rate of increment; concede the fitment formula to bring about uniform benefit.

8    No replacement of Bonus and overtime allowance with PRIS; Grant Bonus for 2006-07 on the basis of the revised ceiling limit.

9        Regularize Casual/Contingent/daily rated workers; treat GDS as full-fledged civil servants; afford pension and other benefits to them on par with the other central Govt. employees.


The situation prevailing at that point of time was ripe for actions including strike. But one has to accept that we dithered expecting that bigger organisations would respond to our initiatives to build up a united movement. We failed to recognise their intentions even after Secretary, Staff Side did not even formally protest for not holding JCM meetings for discussing the CPC report as it used to be in the case of past CPCs.  Instead, Confederation gave a call for 3- hour dharna on 25th June 2008 that failed to evoke enthusiasm.


The timely demarcation would have enhanced the prestige of Confederation amongst the mass of employees and amongst the JCM constituents and it would have put immense pressure on the government – which was also facing heat on political front – to come forward and settle the issues through negotiations.


This dithering had an impact on the participation on the one day strike on 20th August 2008 on the eve of which the government had issued notification on the implementation of 6 CPC recommendations. Though the strike action was a success, the participation of the CG employees was not upto the mark compared to strike on 30th October 2007.


The belated attempt to effect track correction and redeem the prestige ended in a fiasco with many of the leaders of the movement itself giving a cold shoulder to the call for indefinite strike from 20th January 2009.  The employees forgot the fact that what they have got is a belated payment after nearly two and a half years and not a gratis and the leadership at field level at many stations could not conduct proper campaign to educate and prepare the membership for an action. This led to withdrawal of the indefinite strike action.


Confederation of Central Government Employees & Workers has always functioned to give vent to the aspirations of the employees at large, linking the Central government employees with the outside world and the struggle of the common man. It is in the interest of the entirety of CG employees and the middle class employees in general that we undertake a serious introspection and change the situation where the calibre of our leadership is used by vested interests to the Confederation deciding the course of actions and leading others.


National Council of Confederation


The National council of Confederation of CG Employees and Workers was held at New Delhi from 4-6 Dec 2009.The National Council elected the following National Executive for the next three years.


                           President: Com. S.K. Vyas

                     Vice President: Coms: 1. G. Narasimhan

                                                 2. K. V. Sreedharan

                                                 3. M. Duraipandian

                                                 4. K. P. Rajagopal

                                                 5. N. Somaiah

                 Secretary General: Com K. K. N. Kutty

                            Secretary: Com M. S. Raja

              Assistant Secretary: Coms 1.  Vrigu Bhattacharjee

2.  Ashok Salunkhe

3.  I. S. Dabas

4.  K. V. Jayaraj

5.  S. S. Mahadevaiah

            Finance Secretary: Com Giriraj Singh

       Organising Secretary: Coms  1. PK Das

                                               2. Ashok Kanojia

                                               3. Mani Achari

                                               4. Geeta Ghoshal

                                               5. R. Seetalaxmi

                                                    6. V. Nageswara Rao

                                               7. P. Suresh

                                               8. Piyush Roy

                                                       9. RP Singh

                                                     10. P. Rajanayagam

                                              11. D.P.S. Madaan

                                              12. T.K.R. Pillai

Auditor           : Com PV Ramachandran




JAC of Audit & Accounts Employees was formed in 1986, immediately after submission of report of 4th CPC for getting the recommendation of CPC implemented with regard to pay scale of Audit- Accounts cadres vis-à-vis CSS cadres. It slipped into inactivity once the recommendation of 4CPC was accepted and implemented by the Government in 1987, only to be revived in 1990 when the Assistants of CSS were granted higher pay scale with effect from 1.1.1986. It is at this point the JAC was expanded to include officers' organisations.


The Audit & Accounts Employees waged a sustained struggle to get the parity restored. It was only in 2003, the government willy-nilly accepted the demand and extended the pay scale to Audit/Accounts Cadres with effect from 1.1.1996 (notionally) and actually from 19th Feb 2003.


Though the JAC continued to function at the apex level, the effectiveness of JAC is not felt as it used to be prior to 2003, thereafter. The winning of award on parity from Central Board of Arbitration in 2004, near acceptance of the award by the government and putting it back into cold storage could not ignite the anger to the level it should be so as to build up a movement that would compel the government to concede the demand and implement the award.


Our proposal that the award may be implemented from 1.1.2006, date of implementation of 6 CPC, foregoing all arrears is also not responded. Delay and deny seems to be the policy.


When implementation of award is pending inordinately, the government has once again revised the pay of Assistants in CSS from 1.1.2006 against the recommendation of the 6 CPC and not extending the same revision to similarly placed audit & accounts cadres.


Recently – on 18th Jan 2010 – a delegation of Apex JAC comprising of Com SK Vyas, M. S. Raja, Chairman and V. Bhattacharjee, Convener met Shri Namo Narain Meena, Min of State for Expenditure and submitted a memorandum on the implementation of arbitration award on audit/accounts pay scale. The Minister assured the delegation to have the issue examined.


The implementation of arbitration award granting parity with Assistants of CSS is all the more pertinent today as the government continuously and regardless of the 6 CPC recommendations denied the same pay scale to audit and accounts cadres. Only effective campaign and massive mobilisation of employees and officers would force the government to concede the issue of parity and settle for ever.






The situation prevailing in the departmental front could be understood from the single fact that there was only one bilateral meeting with DAI and two meetings with PD, Staff – ofcourse it is improvement from the reporting made in the 44th Conference when there was no bilateral meeting with DAI and only one meeting with PD, Staff was held!


The Department is not interested in the functioning of the Departmental Council is clear from the fact that the nomination of Com SK Vyas as Member, Staff Side has not been accepted despite DOPT disapproving the action. The administration that rushes to DOPT on all other things refuse to entertain the advice of the DOPT on this and even has not responded with the Secretary, DOPT for discussion to sort out the matter. The Department even wrote to the DOPT that they have amended the Constitution of Departmental Council but could not answer the queries on it from DOPT. We have pointed to the Department that as per the Constitution and Scheme of JCM, any amendment has to be with mutual consent and any action initiated by them unilaterally has no validity under the JCM Scheme. The department has not replied to this poser.


Also, though it has been accepted in writing that two meetings with PD, Staff and one with DAI would be held every year, as stated preceding para, only two formal meetings with PD Staff and one meeting with DAI has been arranged despite we submitting agenda for the meetings in time. There are occasions when meeting is granted after six months on submission of agenda.


Another trend visible is not agreeing or remaining evasive on any item in the agenda during the meeting and issuing orders (as we demanded) immediately after circulation of the minutes of the meeting. This is a deliberate attempt to undermine the system of collective bargaining and credibility of the Association(s).


Infringement on the rights of employees to register their legitimate protest and giving vent to resentment on various decisions or moves of the government or CAG's administration is on the rise, as we could see in Kerala and Rajkot. The high handed actions of the then Accountant General were patronized by the CAG's administration is a matter of serious concern. The same story is repeated in Rajkot in a more or less similar manner.


The rule of law is applicable to the employees and the leaders and activists of Association. Accountants General or for that matter any direct recruitee IA&AS officer involving in rampant immoral actions – including rape attempt – are treated differently – with kid gloves.


In Nagpur, the total violation CCS (RSA) Rules, 1993 by the Accountant General (Audit) is not yet rectified despite clear cut assurances. The re-verification assured has not been conducted till this date.


But, it also has to be accepted that of late there are certain positive developments as far as employee-friendly actions are concerned. Regularisation of adhoc Section Officers (AAOs) and creation of nearly 1700 posts to promote all waitlisted SOGE passed candidates as adhoc AAO, conversion of direct recruit quota for promotion quota etc that were demanded by us for long, are to be appreciated.


The assurance to fill up all vacant posts, issuance of order to start sports quota recruitment giving there-in a time table for it and also initiation of action on the assurance on the fate of daily wage employees are to the credit of our long drawn struggle.


The recent move of the administration to re-organise the Commercial Audit wing is to be viewed with grave concern. Discarding the time tested audit methodology the administration has introduced a new mechanism which in reality is negation of concept of audit and Public Accountability. This, if permitted to implement, will see displacement of many personnel as this new re-organised scheme envisages opening up of new MAB offices, breaking and closure of existing MAB offices etc with no rationale.  This Conference will have to consider seriously about this development.


25th April 2007 Convention


The move of the government of India to bring out an over-all amended Company's Act where in the Auditorial role of CAG was limited to Accounts alone created a situation of uncertainty in the minds of employees and officers, especially in the Commercial wing. Our effort to mobilise political opinion against it could succeed to certain limit with left parties – which were supporting the Govt then – supporting our cause continuance of the present position ie accounts audit as well as transaction audit being vested with CAG.


But the most alarming was the position taken by the CAG administration stating that they have no role in this matter whatsoever. They also formed a committee to re-organise the P&T Audit at the same time.


The Auditorial functions were being continuously curtailed by the CAG administration in the name of Performance Audit, with no recruitment to any of the base cadres.


In a meeting of P&T Audit Associations held at Nagpur in 9th March 2007, where the President and Secretary General of both All India Audit & Accounts Association and All India Audit & Accounts Officers Association were present, it was decided to hold a convention at New Delhi on "Prevent abdication of Constitutional Responsibility by CAG" on 25th April 2007.


The Convention was inaugurated by Com Gurudas Dasgupta, MP and General Secretary of AITUC. The Convention was addressed by Com MK Pandhe, President, CITU and Com Tapan Sen, MP. 276 delegates attended the convention representing both the Federations. The march to President couldn't be held for some technical reasons. The convention was also addressed by Coms KKN Kutty, Secretary General, Confederation of Central Govt Employees and workers, V Bhattacharjee, SG, All India Civil Accounts Employees Association and P Rajanayagam, General Secretary, All India Postal Accounts Employees Association.


Formation of Co-Ordination Committee of Audit & Accounts Employees and Officers(Audit COC)


On 26th April 2007, the National Executive Committees of All India Audit & Accounts Association and All India Audit & Accounts Officers Association met jointly at New Delhi and decided to form Co-Ordination Committee of Audit & Accounts Employees & Officers (Audit COC). Com S Mohan, SG All India Audit & Accounts Officers Association was elected as Chairman and Com MS Raja, Secretary General, All India Audit & Accounts Association was elected as Convener.


The meeting decided to carry forward the decision of the Convention and mobilise the employees and officers for a sustained struggle on the issues that confront the employees and officers and the IA&AD.


Half Day Walk Out on 21st June 2007


The first task of the Audit COC was to mobilise the employees and offices against the decision of the administration to abolish all vacant posts with immediate effect and formation of task forces to identify surplus in A&E offices and P&T Audit offices. It was decided to organize a half-day walkout on 21s June 2009 against this on the charter of demands jointly framed.


The half-day walk out on 21st June 2007 turned out to be a massive action on issues purely departmental where no economic demands were involved. It is estimated that nearly 45% of the total employees and officers joined the walkout programme and recorded their emphatic protest on the policies pursued by CAG.


6 CPC Related Issues


 Immediately after the report was submitted we met in our National Executive and in writing gave our views vis-à-vis the Audit and Accounts cadres to the CAG. (Copy annexed to this report).


Discussions were held with PD, Staff and AC (N) on number of issues, especially on getting the comment of CPC that government had never accepted parity in pay scales between audit/accounts cadres and Assistants of CSS, placing the Auditor/Accountant in PB2 with Grade Pay as recommended by 6 CPC and grant of grade Pay 5400 to AAOs on completion of 4 years. But there were no results, as we all know.


After OM on MACPS has been issued  we have demanded that entry into AAO may be treated as deemed direct entry, paving way for all AAOs to get benefit of MACPS. This should not be a problem to concede as this provision is supported by Manual on Standing Orders MSO/Admn Vol I and is well within the purview of CAG. We will have to pursue it further with proper organisational mobilisation.




The leaders and activists of this Association have been facing continued attack from the hands of authorities at field level in many offices. A nonchalant administration is plying the role of mute spectator when the officers are behaving with no concern for civil decency.




The worst kind attack on trade union rights of employees has taken place in Kerala. Com KA Manuel, General Secretary, Audit Category II Association and Com Anil are dismissed from service on concocted charges. Hundreds of comrades are facing multiple wage cuts including Com V Sreekumar, Additional Secretary General of the Association. As we would see in the list annexed to this report, Com R Krishnakumar, President of Accounts Category III is reverted from the post of Accountant to that of LDC at minimum scale with future increments for five years held up.


In first of its type the administration chargesheeted the complainants when lady comrades complained to the office committee that the Accountant General outraged their modesty by stamping on their body and taking their photos on his mobile phone when they were sitting in a peaceful dharna. The chargesheet was set aside by CAT, Ernakulam and the department has gone to High Court on appeal engaging Ms Nalini Chidambaram as their advocate!


Bare minimum Trade Union activities are not permitted. Even on personal representations, the former AG as well as the present DAG would threaten the employees and ask them to discontinue membership of the Association. It goes to the credit of the members that despite all this the authorities could not succeed in breaking the organisation.


Our comrades might have lost the battle, but they are sure to win war. We salute the valiant comrades of Kerala




It is law of the forest that prevails in Rajkot. Com PC Parekh, President, Audit Category III Association has been kept under suspension for more than a year. The charge against him is that he talked in a raised voice with the Secretary of Accountant General, which was not even proved in the enquiry. Only in IA&AD somebody would be kept under suspension, that also for such a long time, on such frivolous charge which is not supported by any rule.




Com OP Tiwari, former Additional Secretary General of this Association was compulsorily retired and his pension was reduced by 20% for an incident that occurred in 1997 and chargesheet for which was issued in 2001.


On appeal, the penalty was waved and fresh enquiry has been ordered.


West Bengal


            Com Gautam Pramanick, former President of our Association was chargesheeted under Rule 14 of CCS (CCA) Rules on the eve of his retirement for leading a peaceful agitation demanding minimum wage to the Casual employees and also for presiding over their meeting. The then General Secretary of the Association and 25 others are also proceeded against under Rule 14/16 of CCS (CCA) Rules.




CWC & NE Meetings


The National Executive that was elected by the 44th Conference at Chennai in January 2007 had 12 sittings during the last three years.


The Central Working met twice during the same period – on 21-22 February 2008 at Bhubaneswar and 29, 30 October 2009 at New Delhi.


We also met in a Special Conference at New Delhi on 16, 17 October 2008.


The agitational programmes we had during the last three years received good response from the membership, forcing the administration to agree for filling up of vacant posts, abandoning of the proposed examination for AAOs for further promotion as AOs, diversion of Direct Recruitment quota into promotiona quota, relaxation on compassionate ground appointments etc. List of programmes we had since 44th Conference is given in the annexure.


The feed back from the units remain a major roadblock in deciding the future programmes affecting, many times, continuity.


Looking back critically, we will have to accept that though we did make some attempts to re-build the organisation and build up resistance to policies of down sizing and outsourcing with limited success, we are nowhere near the goal set by ourselves.


As stated elsewhere in this report, we could force the department to recruit personnel in the entry cadres, could force them to reverse the decision to recruit only Section Officers (AAOs), but as far as the major tasks like conducting 1 crore signature campaign, holding convention on abdication of constitutional responsibility by CAG etc we could not make any advancement beyond some pronouncements.


Similarly, formation of Audit COC with All India Audit & Accounts Officers Association has remained as a non-starter. The co-ordination remains only at the apex level, it is yet to percolate down.


The functioning of local JACs is far away from expectation. We have to realise that we are the fulcrum to the JAC and has to adjust and accommodate other Accounting organisations who may be smaller in number. The initiative and leadership required is not being visible.


Audit used to be the leader as far as Confederation functioning is concerned. Our understanding of the issues of other organisations and involvement there-on used to be far above than others. The leadership of local/State COCs used to be with us. Today we are not that active in many stations to the extent it has to be.


The drastic reduction in the man power and total absence of younger people for want of recruitment is having a telling effect on the functioning of the Association. The average age of the department now a days may be 50. This may be one reason for deficiencies that we notice.




The efforts to form a Trust and transfer the two buildings in the name of the Trust were initiated immediately after 44th Conference. It was only in October 2008, we could finally come to a decision on the Constitution of the Trust. The Special Conference held at New Delhi on 16-17 Oct 2008 adopted the Constitution of the Trust.


Immediately after the decision to form a Trust and adoption of its Constitution, Com CSV Warrier who took first steps towards fulfilling the idea of own building for All India Audit & Accounts Association expired. The meeting of National Executive in its meeting on 9th & 10th December 2008 decided to name the Trust after Com CSV Warrier. The trust was registered at Thrisur in Kerala on 23rd January 2009.


On 11th January 2010, building No 1090 – in the name of Com MK Pandhe – was transferred to the CSV Warrier Trust by Com MK Pandhe at the office of Registrar at Ghaziabad, Uttar Pradesh.




The situation explained in the preceding paras could be changed by adapting to more earthy methods. Understanding that our membership today has crossed an age where needs and necessities would overtake enthusiasm, whose children are already in the higher stage of education or already employed a more vigorous mode of education is necessary to carry the struggle forward.


In today's world, where the media – print as well as visual – present everything suited to their business interest with colouring and distortion, it requires deeper understanding of issues. Our members have to be repeatedly told about the tragic of the trajectory that we trudge, that behind the glossy picture of few crores of population there is an agonising scores of crores of population who struggle to get one square meal a day.


Connecting our membership with the harsh realities of the present day India is indeed an arduous, but an inevitable task. The illusion – created by the forces around us repeatedly – that we belong to a separate world has to be erased through sustained and studied and systematic campaign. We have to identify ourselves with the miseries of billions of exploited and expropriated across the country and the world. Then only we will be able to come out of the cocoon that we are today. Then only we can be called trade unionists and a trade union.


Let this conference be a mile-stone in this direction.


Let us re-dedicate to the cause of all those who are victims of the present exploitative system.


                                    Audit and Accounts employees Unity Zindabad!

                                    All India Audit & Accounts Association Zindabad!

                                    Central Government Employees Unity Zindabad!!

Confederation Zindabad!!


                                    Workers Unity Zindabad!!!


                                    Enquilab Zindabad!!!


Yours fraternally


(M. S. Raja)

Secretary General


2nd February 2009




Annexure – 1

List of Programmes Observed



1.        23rd Feb.07 Protest Day - & telegram to CAG on implementation of authorization   letter.

2.                  Demands Day on 14.03.2007 – adoption of charter of demands.

3.                  Mass Deputation on 20.03.2007

4.                  Dharna – joint programme – Confederation & AISGEF on PFRDA Bill on 07.03.2007 at centralized place.

5.        8th March 2007 - Women's day.

6.                  29th March 2007 – Solidarity with Strike by GSI & IBM Employees against privatization

7.                  3rd April JAC Call for Wake up call Day

8.                   Telegram on 'uncivilized behaviors of AGs, Kerala

9.        12.04.2007 observance of "Prevent Abdication of Constitutional Responsibility for Auditorial & Accounts functions by CAG Day"

9.                  15th April - All India Association Day

10.              25.4.2007 - National Convention on "Prevent Abdication of Constitutional  Responsibility for Auditorial & Accounts functions by CAG Day" at New Delhi

11.              7th June 07 Unity Day and handing over of notice on half day walk-out to Head of Office)

 12.     21 June 2007 - Half Day walk out.

 13.     28.06.2007 - Struggle Commencement Day Dharna etc. by Confederation.

 14.     27-28 June 2007   -    JAC Call (2 Day Fast & Dharna by local JAC)

 15.      6.09.2007 - Stop Victimisation of Active Women Cadres of Association in Kerala AG's office day by holding lunch hour demonstration and taking out Mass Deputation to Heads of Office.

  16.    19th Sept 07 Serve Strike Notice Serving Day (30.10.07 One Day Strike)

  17.     October 1st Week - Condolence Meeting (Com. K.Sundaram)

  18.     20 Oct.07 One Day Strike

  19.    20.11.2007 - JAC call for Lunch Hour Demonstration and Sending Telegram to Prime Minister

  20.     6-7 Dec. 200724 Hour Fast by Local JAC & Massive demonstration

  21.     23rd November 07 - Observance of Kerala Day.




24.01.2008 - All India Demands Day.

28.02.2008- Call by JAC – Dharna at Unit Level.

14.03.2008 - Anti Victimisation Day.

27.05.2008 - Demands Day call by JAC.

28.05.2008 -Vacate victimisation – Honour Democratic Rights Day.

04.06.2008 -Dharna as per call of JAC.

25.06.2008 – 3-hour Mass Squatting – Confederation call

8th July 08 – Convention.

30th July 08 – Dharna, Confederation -AISGEF.

04.08.2008 - Serving of Strike Notice.

20.08.2008 - One Day Strike

19.09.2008 -Strike Declaration Day.

30.09.2008 -Demands Day by Audit C-O-C.

      18.11.2008 -Demands Day Deputation by Executive Committee, handing over of Charter of Demands.

03.12.2008 - Protest Day Call by Audit C-O-C on new TA/DA rules.

23.12.2008 - Solidarity action with Insurance Workers' Strike.




02.01.2009            Protest Demonstration against GE Take over in Bihar & Strike  

6th January 2009    Notice Serve for Indefinite Strike

16-20 March 2009 – Observance of  'Black Week', Wearing Black Bands on all the Five Days and holding Lunch Hour Demonstration.

20.03.2009            Protest-Demonstration & Telegram to CAG on TA/DA.- Audit COC

25.03.2009          Confederation call for protest Demonstration for TU Rights & against victimisation of Association leaders and activists &Telegram to CAG.

27.03.2009     Raising funds for the victimisation comrades in Kerala through Dabba/Tin/bucket collection.

15.04.2009           All India Association Day

18.08.2009  -        Vacate Victimisation Day.

28.08.2009 –        Demands Day.

01.10.2009 –     Telegram to AG (Audit) Rajkot against continued suspension of PC Parekh

 05.11.2009 -        Demands Day – JAC.

12.11.2009-          Observance of  'Com. C.S.V.Warrior remembrance Day'.

19.11.2009 –       Dharna by Executive Committee, against the Dismissals of Com. Anil & Manuel &  demanding Immediate  revocation of suspension of Com. P.C.Parekh.

25.11.2009 -         Human Chain – Confederation Call.

23-27.Nov.09 -    Know your Demands Week.

15-16-17 Dec.09 – Mobilisation Days.