Army Imposes Restrictions on CSD Car Purchase, Veterans Unhappy

Veterans complain about not taking any feedback from them before deciding on the new policy.

Updated: May 30, 2019 9:37 AM IST

By News Desk | Edited by Sharmita Kar

Army Imposes Restrictions on CSD Car Purchase, Veterans Unhappy
The Indian Army imposes price-cap on purchase of cars

New Delhi: The Indian Army imposed restrictions on the purchase of cars by its officers and jawans from the Canteen Stores Department (CSD) Canteen. The step has been taken in the light of increasing expenditure of the CSD canteens and will be effective starting June 1.

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According to the new price-cap, the army officials can now buy a vehicle only up to Rs 12 lakh from the Canteen and only once in eight years.

The step has been taken also to reduce the social disparity that is caused due to the advantages the Army officials receive.

On the purchase of these vehicles, the GST cost on the car value will be exempted and there will be regular cash benefits for vehicles with an engine capacity of up to 2500 cc.

If a car is purchased with a price tag up to Rs 6.5 lakh, the officers will not receive any GST exemption. Moreover, one can purchase so only once during the course of their service and once after retirement.

Speaking to a leading newspaper, ex-Serviceman Movement chairman Major General Satbir Singh criticised the restrictions that the move could affect the morale and motivation of the soldiers which will eventually affect their efficiency.

Unhappy officials have also demanded a rollback saying that the step taken was unwarranted and no feedback was taken before the promulgation of the new policy. Major Satbir Singh (Retd) also expressed his concern for the future of the Indian Army with such facilities being taken away.

By buying cars from the CSD Canteens, defence personnel save at least Rs 75,000 on the original price of the car. As a result, CSD sold cars nearly worth Rs 6000 crore last year, which caused an overshoot and a carryover liability of payment to car manufacturers of Rs 4500 crore.

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Published Date: May 30, 2019 9:35 AM IST

Updated Date: May 30, 2019 9:37 AM IST