Army officers can purchase cars from CSD only once in 8 years

According to a media report, the Indian Army has imposed restrictions on the purchase of cheaper cars by defence officers from CSD canteens. The new rules come into effect from June 1, 2019.

As per the new regulations, officers will be allowed to purchase cars from CSD only once in 8 years. The car's value must not exceed Rs. 12 lakh excluding GST and the its engine capacity can be upto 2,500cc. Jawans would be allowed to buy cars worth Rs. 6.5 lakh including GST once during regular service and once after retirement.

Reports suggest that the decision was taken after car sales went up by 200% in the last 2 years. In 2018, car sales through CSD crossed Rs. 6,000 crore, when approximately Rs. 17,000 crore are sanctioned by the government for CSD annually. Defence personnel save around Rs. 75,000 on cars purchased through CSD. 

Source: Economic Times