AIDCCEU (All India Defence Civilian Canteen Employees’ Union)

Press Release in Delhi on 18 Mar 2010

This is a matter of extreme exploitation of Unit Run Canteen (URC) employees by the Chiefs of Indian Defence Forces – Army, Navy and Air Force, misappropriation of Govt money and a big scam and scandal of Military Forces. The URCs are the retail outlet shops of Canteen Stores Department (CSD). The CSD is an organization of Ministry of Defence, Govt of India. There are total 35 CSD Depots established all over the country which totally depends on the 3600 URCs for sale of its articles. In comparison of annual turn over of CSD is Rs.7255 Crore the annual turnover of URCs is Rs. 7687 Crores which generate approximately a net profit of more than Rs 400 Crore per annum. In addition to this profit Military Canteens (URCs) are also getting approximately a sum of Rs.150 Crore as Quantitative Discount (QD) from Govt of India, Ministry of Defence through CSD. There is no provision of audit of this public money by the Govt agency.

Besides the both organization are working for the interest of the Nation. The CSD employees have got the status of Govt servants and they are enjoying all the benefits of Central Govt servants. But the URC employees those who are working neck to neck the three services and meeting the requirements to the end customers are being paid very poorly and getting only basic salary of Vth pay commission. No other facilities like DA, HRA, Grade Pay, Fund, Gratuity, Medical facility and rirement benefits are admissible to the URC employees, Several times our delegation met to the Hon’ble Defence Minister and apprised him about the pathetic condition of the URC employees but no relief has been got so far. It is pertinent to mention that in accordance to the Hon’ble Supreme Court order dated 04 Jan 2001, the Secretary, Ministry of Defence has framed a set of Rules Regulating the Terms & Conditions of URC employees which have been totally violated by the three services of Indian Defence Forces. They are not even adheres the orders of the Hon’ble Raksha Mantri. The MOD is finding itself incapable to implement its own formulated Terms and Conditions and Rules regarding the Pay Scales of URC employees.

In view of the above we demand that:

(i) If profit generated by the CSD to be taken on account of Public Fund, why not the profit generated by the URCs to be treated as Public Fund as the both are generating profit on sale of same articles merely as wholesaler and retailer respectively.

(ii) Besides the both organizations are generating profit on sale of same articles why only CSD accounts are audited by the Govt Auditors. Why not the accounts of URCs to be audited by the Govt Agencies.

(iii) If the CSD employees are treated as Govt servant why not the URC employees could be treated at par their counter parts at CSD.

(iv) Why the Pay Scales of URC employees have been not revised at par their counterparts in CSD in accordance to their Terms and Conditions of services issued by the Ministry of Defence.

In view of the above it is humbly requested that a favorable action may please be taken at your end to give relief and redress the grievances of the poor employees of URCs.
Secretary General

URC Employees Threaten to Commit Suicide on "Labour Day" !

The URC (Unit Run Canteen) employees of Indian Defense Forces threaten to commit suicide at Parliament Gate No.11 on the coming 1st May 2010, the day celebrated as "Labor Day" all over the world, if their demands are not met by 30th April 2010. URC employees from all over India took part in a "Red Kachchha Rally" (participants were half-naked only in red shorts) on 18 Mar 10 in front of the Parliament House to demand justice from Ministry of Defence. They agitate for their meagre pay of only Rs 3000 - 5000 even after long 30 - 40 years of service with no DA, HRA or other facilities. They are even paid less than that paid to a unskilled daily wagers per day. They submitted a memorandum to Mrs Sonia Gandhi, the Chairperson of UPA, Dr Manmohan Singh the honorable PM of India and Mr AK Anthony, the honorable Defence Minister. Their main demands were:

(i) As the CSD (Wholesale Outlet), the retail outlets (URCs) should also be declared as Public Fund and the entire transactions are revealed to the Govt of India.

(ii) The recommendations of the 6th Pay Commission should be implemented with effect from 01 Jan 2006 as applicable to other Govt employees.

Will the Govt take honest step to check the utility of huge earnings from the so-called Non-Public Fund i.e. Unit Run Canteens and do justice to the poor employees and their families.

Status of Unit Canteens and their Employees

CSD is a department under the Ministry of Defence. All its employees are Government employees. The funds of this department form part of the Consolidated Fund of India and are thus Govt Funds. On the other hand the Unit Canteens are private undertakings of the Units concerned. Their funds are are Non-Govt Funds. The CSD has no administrative control over the Unit Canteens or their personnel who are employed by the Units under various terms and conditions mutually settled between the Units and the employees. They are not Govt servants and the Ministry has no control over their service conditions and has no jurisdiction over the service condition of such employees. (Reference: Govt of India, Ministry of Defence Letter No.BOCCS/00181/Q/CAN/5469/D (MOV) dated 27 October 1977 and Letter No. 96029/Q/DDGCS dated 10 Feb 1995.)

The disturbing questions in this context the Union asking answers to:

(i) Merely calling a Govt-obligatory service as Non-Public Fund, can the Ministry of Defence keep the control of Indis’s largest retail chain network (URCs) with an annual turnover of Rs.7,500 Crore as their private venture? Has the Govt ever checked the utility of huge earnings from this so-called Non-Public Fund?


  1. Hi All,
    can you please update me on the latest progress please as so far i have also not seen this rolled out for the employees who are still working with the CSD stores.

  2. Hi,
    Also last year there was a rally which happened in new delhi somewhere in summer time 2009 and that time also it was agreed that the payment will be made to the people but more than 1 and half year gone and still there is no news on this. I am wondering why the ball is just being passed from the ministry to the army staff without any action done. Also this is not at all acceptable as all the people in india has the right to information atleast if not decisions. Let me know please as being the son of the CSD canteen employee i also know how difficult it is to survive. Also if ministry has taken the decision, Army chief has given the decision then why it is pending at the brigadier of small region. I do not feel that it is at all relevant. Keep me updated by means of this forum.

  3. hi when govt give us full scale ?

  4. HYE
    I am an employee of URC from last 24 years,still I am getting only 7500 pay per month only, which is less than HALF of the pay of defence group "D" employees.
    I am facing many problems to make the survival of my family.
    please pay attention towards this problem,
    otherwise it will be very late................
    We have to come up, and take this matter like ANNA hazare did.


  5. this to misguide people if urc employees are not Govt servants and the Ministry has no control over their service conditions and has no jurisdiction over the service condition of such employees.then why and how the Quarter master general ,s branch is issuing letters and directions to urc and policies for urc and employess and also they are Refering: Govt of India, Ministry of Defence Letter No.BOCCS/00181/Q/CAN/5469/D (MOV) dated 27 October 1977 and Letter No. 96029/Q/DDGCS dated 10 Feb 1995 why the are not refering their letter no 96029/Q/DDGCS dtd 28 Apr 2003 Para 18(a) whis eproduced here "Minimun scales available to to employees in CSD(I)will be granted to unit run canteen emploess .when URC employees were granted pay according to fifth pay commision why same is not revised as per sixth pay commission.

  6. hai,
    am an employee of an URC at Trivandrum, now higher officers are telling that the court has cancelled the order. is it correct, pl reply me

  7. Dear friends, I am xyz, Manager of Air force Canteen xxx . it is informed that URC employee's Government status have been withdrawn vide Supreme court verdict dated 09 Apr 2009. therefore, the only hope now is CAG & PAC. Public Account committee is expected to submit
    a report, whether URC can be treated as public fund or not. wait and see !.

  8. Dear friends, I am a citizen of India and know that our blood is red. Is there any person can prove that his blood colour is different? then why this type of behavior with URC employees. Please do the needful soon otherwise ANNA will do rest. Can any worker/officer(paid from Public Fund) do their work without DA, HRA and other facilities, if not then how URC employees can do? Space in stomach is same. If URC employees wages is justified then reduce the salary (at par of URC) of all who are paid from public fund, either he is VVIP/VIP or class-IV. All Indians are having equal right of living, speaking etc. Be serious on the matter. Can any one live in hotel/house/dharamshala/guest house/ rental house without getting any HRA. We are pushing URC employees in the gutter.

  9. hii to all i m working in urc jaisalmer , i want to ask all member of aidcceu will we get over right or justwait as ever

    CIVIL APPEAL NO. 3495 OF 2005
    R.R. Pillai (dead) through Lrs. ...Appellants
    Commanding Officer HQ S.A.C. (U) and Ors. …Respondents
    (With Civil Appeals Nos. 3557-3559, 3560 and 3561 of 2005)
    J U D G M E N T
    1. Doubting correctness of the view of this Court in Union of India v.
    Mohd. Aslam (2001 (1) SCC 720) reference has been made to a three-Judge
    Bench and that is how these appeals are before this Bench. The controversy
    lies within a very narrow compass.

  11. SC has put the last nail vide CIVIL APPEAL NO 3495 of 2005 decided on 28Apr 2009 by stating URCs are purely private ventures and by no stretch of imagination employees as employees of govt or CSd. You are all getting the benefits of CSD facility most illegally.And that be pulled out by the Army authorities.

  12. How I join this unin?
    I am also csd employee.