Tuesday, December 15, 2009




The Annual General Body meeting of IESM was attended by more than 400 members from Delhi, Haryana, Rajasthan, Uttar Pradesh, Karnataka, Punjab, Himachal Pradesh, Maharashtra, Jammu and Kashmir, Kerala and Chandigarh. The meeting started at 1000h. Gen Sec Gp Capt VK Gandhi VSM welcomed the members and noted that the corum was not complete adjourned the meeting and declared that meeting will reassemble after 30 min as per the company rule.

2. The AGM reassembled at 1035h with more than 400 members present and the proceedings and deliberations started.

3. Gp Capt VK Gandhi VSM welcomed the members and read out the agenda for the meeting. He requested the Chairman Lt Gen (Emeritus) Raj Kadyan PVSM, AVSM VSM to address the meeting.




4. Chairman addressed the assembly and explained to all that the IESM has been successful in bringing the OROP to the centre stage of the Government Radar. IESM is always careful of the image of the armed forces and would never take any step which would adversely affect the image of armed forces in public eye. Infact he commended the veterans that they have maintained their semblance while protesting for their rights and demands. It is this dignified behavior of the veterans which is being appreciated by all the countrymen. He further explained that there is no quick fix solution to the demand of OROP and it would be a long drawn fight with the Government. Veterans of the armed forces have the experience and knowledge of the Government functioning and their methods of taking decisions. This struggle would therefore be long and tedious and would have to be fought patiently. He also expressed that the novel idea of depositing the medals to the President of India is indeed very effective and the Government has no answer to this form of protest by the veterans. He explained to the house that even Government functionaries are clueless about how to tackle this problem of medal return. He told the house that the fact that the RRM Sh Pallamraju has made a statement in the Lok Sabha that the Government has accepted the recommendations of Cabinet secretary committee and hence all the veterans should take back their medals honourably. This indicates that the Government is uncomfortable with the return of medals by the veterans and does not have any answer to this problem. He explained to the members that recommendations of Cabinet Secretary Committee are far short of the demands of IESM hence there is no question of taking back the medals. He further exhorted the house that this method of protest of returning the medals should be intensified and IESM should continue to return the medals in very large numbers to the President to increase pressure on the Government. He further informed the house that IESM has asked for an appointment with the President of India and also with the Raksha Mantri but our request had still not been accepted because they do not have any suitable reply for our demands and our method of protest. Next date of returning of medals would be announced soon.

5. He informed the house that with the effort of IESM;

· The government has been forced to accept two demands of having a separate pay commission for the armed forces and of constituting an ESM Commission. Both these are part of IESM demands
· Two major political parties, BJP and CPM included the OROP issue in their election manifesto by categorically stating that if voted to power, they would sanction OROP. It may be relevant to recall that the same BJP had not sanctioned OROP during their over six years NDA rule.
· The President of India included mention of the term OROP in her address to the opening session of the Parliament on 04 June 2009. This was the first time in India’s history that the ‘taboo’ word was used by the First Citizen of the country.
· Substantial pension benefits for pre 1997 PBOR are in the pipe line and an amount of Rs 2144 Crore has already been set aside for this purpose.

6. He further told the house that three division of the IESM have been accepted by the veterans and all the veterans are very appreciative of the work done by the divisions. Many veterans are approaching these divisions with their problems and veterans are being helped in all possible ways.

7. The Chairman also informed the house that it is very important to increase the members of IESM because increased number of members increases the strength of IESM and would put more pressure on the Government. He informed the house that in deference to the desire of the many veterans it has been decided to reduce the membership fee for the new members for a period of one month upto 16 Jan 10. As per this amnesty, during this one month an officer would pay a subscription of Rs 100, a JCO would pay Rs 40 and a sepoy would pay Rs 10 as against existing Rs 500 for officers, Rs 200 for JCOs and Rs 100 for ORs. He hoped that this would generate greater response from the veterans and there would be manifold jump in the numbers of members of IESM. The decision would be reviewed after one month.

8. He wished all the veterans very best in New Year and exhorted them to continue to put in their full efforts and make this movement successful.


9. Treasurer Maj Gen Renjen explained the details to the account statement to the house and replied to the queries of the members. Account statement was passed with voice vote with no dissent.

10. It was proposed by one member that expenses incurred by members of the Governing Body on a day to day basis in doing their official IESM activities should be reimbursed, which is a norm with all societies and organisations. All members present appreciated the dedication with which functionaries of IESM are working and spending money from their own pockets for day to day expenditure incurred by them on IESM activities. The member expressed that it cannot go on for long and would, sooner or later, adversely affect the commitment of its officials and IESM functioning. The proposal was supported by all members attending the AGM by show of hands. However, it was explained that IESM does not have adequate funds at present to reimburse such expenses and that a decision in this regard may be pended for later. The Governing Body re-iterated its commitment and willingness to work for the IESM pro-bono and meet their individual day to day expenses for the same from their own pockets. It was further declared that a guideline on type and quantum of expenditure that may be so reimbursed to the members of the Governing Body will be circulated before a decision is taken on the issue.

11. Treasurer also explained that in this year donations have reduced as compared to last year and till end of November IESM has spent more than the income for the year. He exhorted all the members to help arrange for donations for IESM to meet expenditure for day to day running and arranging protest marches/rallies. There was an instant response and all present agreed to make their best attempts to arrange for more donations. Following two ESMs immediately came forward to contribute for IESM.
· Col RL Goel agreed to give Rs 10000/ every year for IESM.
· Cdr Pran Prashar gave a cheque of Rs 7000 for IESM. He has given donation to IESM at earlier occasions also.

12. Treasurer informed all present that the conveners of UP, Mahrarashtra, Tamilnadu and Karnataka have done very good work and have enrolled maximum veterans as member of IESM. Efforts put in by following conveners were appreciated by the house.
· Hony capt SN Sharma from Kanpur Uttar Pradesh
· Cdr Ravi Warsha Pathak from Pune Maharashtra
· Col TN Raman from Chennai Tamilnadu
· Col Rajan from Bangaluru Karnataka

13. Full speech of the Treasurer Maj Gen PK Renjen AVSM is attached at annexure I.


14. Chartered accountant M/s Rajiv Varun and company were approved by the house with voice vote for the year 2009-10..


15. Brig Kuthalia, Member ECHS div, explained to the house that he is looking for volunteers for working with the ECHS polyclinics. He appreciated the work done by the veterans in polyclinic in Secunderabad. He explained to the house that at the moment there are 227 polyclinics are functioning and in next three years another 197 polyclinics would be set up to look after the health of veterans. He further informed the house that the MD ECHS has a very positive approach and gives full support to the suggestions of the IESM.

16. Lt Gen Jagdish Chander explained the working of the CSD canteen and profit sharing formula of the CSD. It was pointed out by the veterans that profit earned by the CSD canteens from the veterans should be spent for the welfare of the veterans. He accepted that the proposal was good and would be taken up with the authorities.

17. Col Vikaram Singh informed the house that the IESM has made a deep impact on the Government and asked all the veterans across the country to give full support to IESM and put more pressure on Government. He informed the house that he is planning an all India meet of the veterans in Mathura and invited all veterans to attend the meet. Date and venue will be informed after the details are finalised..


18. Maj Gen Satbir Singh implored all present to put in their full might to increase pressure on the Govt. He asked all present to take a vow that each district should make 2000 members and also should collect a minimum of 2000 medals for returning to the President. This is the only way in which we can increase the strength of IESM and return a large number of medals to the President..


19. Fifty eight new members joined IESM during the AGM with effort of Hony Capt Dheer Singh of Gurgaon..


20. More than 500 medals were returned with the effort of Hony Captain Rathee from Jhajjar..


21. General Secretary thanked following on behalf of IESM Governing Body for successful conduct of Annual General Body meeting of IESM.

All present for attending the first Annual General Body meeting of IESM.
The management of Arun Vihar Community Centre for providing the AVCC and the facilities for smooth conduct of the AGM.

President AVCC RS Pathania for sponsoring the tea and snacks by the AVCC as a welfare measure for ex-servicemen.
Press and media for covering the AGM in detail.

22. There being no other point the meeting was closed at 1300h.

23. Picture’s of the meeting are enclosed. (Not attached with this email)


Gp Capt VK Gandhi VSM
Gen Sec IESM
L - 48, Sector - 25,
NOIDA. 201301
Tele no 01202519440
Mobile 09810541222
Date 14 Dec 2009


Annexure I To Min of AGM
Of IESM Held on 13 Dec 09.


The Treasurer’s Statement at the AGM on 13 Dec, 2009
Financials as on 31 Mar, 2009
1. Receipts

a) Membership Fee – 9,15,180.00
b) Donations – 14,28,204.00
c) Total – 23,43,384.00

2. Expenditure – 5,75,363.00
3. Balance

a) Fixed Deposits – 16,00,000.00
b) Cash, Bank & others – 1,68,021.00
c) Total - 17,68,021.00

4. Explanation on Expenditure.

a) Mostly on Dharnas/ Rallies and associated items.
b) Nothing has been spent to reimburse expenses incurred on a daily basis by the members of the Governing Body (also known as the Steering committee).
c) Legal & professional Charges of Rs. 25,000/- are towards the retainer given to Advocate Nidesh Gupta to fight our case for ‘one rank one pension’ as and when it is decided to file the suit. Advocate Nidesh Gupta is the same lawyer who had won the Maj Gens case in the Supreme Court in Sep 2008.
Answer Questions by members, if any.
Balance Sheet for 2008 – 09 put to vote for approval.
Appointment of Auditors for the current year (2009 – 10)

5. The present auditors M/S Rajiv Varun & Co were appointed at an annual consideration of Rs 48,000.00, to conduct the statutory audit as also to maintain our accounts on a fortnightly basis. They have done their task most commendably.
6. It is proposed to re-appoint M/S Rajiv Varun & Co for the current year too on the same terms and conditions and the approval of the General body is sought for the same.

Additional Comments by the Treasurer
Brief on Financials of 01 Apr, 2009 to 30 Nov, 2009
7. Receipts

a) Membership Fee – 5,72,100.00
b) Donations – 4,23,869.00
c) Total – 9,95,969.00
8. Expenditure – 4,96,547.00
9. Balance
a) Fixed Deposits – 19,00,000.00
b) Cash, Bank & others – 3,24,542.00
c) Total – 22,24,542.00

10. Explanation on Expenditure.
a) Besides expenditure on centrally conducted Dharnas/ Rallies and associated items, which have reduced, there have also been expenses incurred locally by the Convenors at different places for their activities for mobilising greater membership – like, gatherings, printing and travel etc.
b) Once again, nothing has been spent to reimburse expenses incurred on a daily basis by the members of the Governing Body (also known as the Steering committee).
c) Additional, wholly unnecessary, expense is being incurred this year to defend the suit filed against IESM by Col Bhardwaj through his wife, Mrs Shiksha Bhardwaj in conjunction with Maj Jakhar, Hav Balwan and Hav Sheoran. Basic information about the suit filed by these personnel have already been informed to all.

Implications of Income Tax Regulations Governing Expenditure

11. Revenues against Life Membership Fee, which is what we have, cannot be used for day to day expenditure for our activities. We may, however, spend it to create physical assets. The receipts under this head are to be kept in a ‘Corpus’ Fund to give strength to the Organisation.

12. Revenues against donations can only be spent up to 85% of receipts under this head. 15% of receipts are also to be transferred to the ‘Corpus’ Fund. However, this 15% can be spent for our activities, if required, by a special resolution of the Governing Body.

13. While last year, in just 3 months of our existence, we had received donations of Rs 14,28,204.00 and had saved Rs 6,38,610.00 for spending in future years, if required. But, this year in the last 8 months, we have received only Rs 4,23,869.00 and have overspent Rs 1,36,258.00 already. The balance available for spending, therefore, not counting the 15% put away in to ‘Corpus’ is only Rs 5,02,352.00.

14. The imperative for more donations to sustain IESM needs no further explanation. Increased membership alone will not help.

15. Many members have been critical of The Governing Body (also known as The Steering Committee) for reasons like;

a) Non despatch of Membership Cards,
b) Non allotment of Membership Nos,
c) Names not entered in the members’ list,
d) Tardy response to members’ queries on the above issues,
e) Wrong data entries – duplicates, spelling errors etc,
f) Web site not user friendly,
g) No response to members’ ‘Feedback’ comments posted on the web site and many more complaints.

16. All the criticism is fully justified. In fact, today I have over 400 members whose names are yet to be entered in the list. We may give any amount of assurances of a better response but, if the truth be said, we can do no better. Due to shortage of funds, we have been unable to rent and set up an office and hire minimal staff. We work from homes and the work is such that we have never done before in life.

17. The Chairman has recently announced drastic reductions in the Membership Fee, as a trial measure, for a month. The hope is that the reduction will encourage more ESM to join. That may well happen but would be truly useful only if donations increase manifold alongside. Otherwise, we will not be able to service the new members and there will be many more complaints than now. Worse, the IESM’s sustenance will become difficult.

18. My purpose of giving the above implications was to acquaint you with realities and to request you all to mobilise donations from ESM and the corporate world..

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