Cashiering from service would entail the withdrawal ofall perks he enjoys as a retired officer of the Indian Army,including pension.
A Court of Inquiry constituted in 2005 had recommendeddisciplinary action against Sahni, who retired the followingyear, after indicting him in the case.
Among the charges for which Sahni was convicted was theintent to defraud in the procurement of rations.
A report by the Controller of Auditor General (CAG) hadpaved way for action against Sahni. The report revealed thatsoldiers were supplied wheat, rice, pulses and edible oil pasttheir expiry date.
The auditor has also found a serious lack ofcompetition in filing of tenders for the purchase of ration.
In fact, it points out that a single vendor bagged contractsfor more than 36 per cent of the purchases.
It also said that about-to-expire food items werebought at cheaper rates by contractors and then supplied toarmy units.
On July 10, 2010, the summary of evidence wascompleted; giving recommendations to continue disciplinaryaction against General Sahni and orders for general courtmartial were issued.
In this regard, a Court of Inquiry which wasconstituted in 2005 had recommended disciplinary actionagainst him in connection with the case. After his retirementfrom Army in 2006, the inquiry was initiated.