Former army chief, General VK Singh, commands new controversy

New Delhi: The government is unlikely to order a Central Bureau of Investigation or CBI inquiry into allegations of misuse of funds made against former Army Chief General VK Singh, say sources, despite a report recommending such action.

The Defence Ministry reportedly believes that such an inquiry will lead to more such demands, compromising and exposing the work of intelligence.

General Singh has been accused of misusing funds from a secret military intelligence cell that he had created. The controversial cell had been accused of spying on the government.

An Army report on that secret cell has been received by the Defence Ministry, a government statement said today. "The report impinges on matters of national security... the government will take a decision and further actions after careful examination of the report," it said. (Read full statement here)

The ministry, said sources, prefers that an internal mechanism to deal with the matter and has reportedly asked the Army why it has not taken action on its report yet if any officer has violated the law. The Army does not need the Defence Ministry's sanction to act against allegedly errant officers.

According to the Indian Express, the army's inquiry against its former chief has revealed that a crore was given to a Kashmir minister to destabilise Omar Abdullah's government. The minister, Ghulam Hassan Mir, has denied the charges. (Read Indian Express story here)

The newspaper also claims that officers have testified that General Singh used army money to fund an NGO that tried to legally block Bikram Singh from succeeding him as army chief.

Gen Singh has said his legal team is studying options. The former chief, who has campaigned against corruption alongside Gandhian activist Anna Hazare post retirement, has suggested that he is being persecuted for revealing his political leanings.

He has not yet joined the BJP, but shared the stage recently at a Haryana rally with the BJP's prime ministerial candidate, Narendra Modi.