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In a letter dated March 12, Army Chief General V K Singh has warned Prime Minister Manmohan Singh that the country's security is at risk.
The letter states that Indian army tanks have run out of ammunition, and emphasises on overcoming the shortcomings, and bring the army to fighting level.
Singh also calls almost 97 per cent of the air defence as obsolete, and the elite special forces are short of weapons.
Recently, Singh, who has claimed that he was offered a bribe of Rs 14 crore for clearing a 'sub-standard' procurement order, has said he could not understand the import of the statement and that is why he did not act against the person who made it.
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"If a person who has just retired a few days ago tells you that you will get this if you do that thing and when you have never heard something like this, you would be shocked. I did not understand what he was saying and asked him to leave and then informed the defence minister about it," he told news website Chauthi Duniya.
In response, Defence Minister A K Antony on Tuesday said he had asked General V K Singh to take action but he did not want to pursue the matter for unknown reasons.
Recalling the incident, the minister said the army chief had told him that one retired General Tejender Singh met him and offered Rs 14 crore bribe.
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"I was shocked... It took me one to two minutes to regain my composure. Then I told him to take action but he told me I do not want to pursue it. I don't know why he did not want to pursue it at that time," Antony said.
"I will take action, nobody will be spared. If anybody is found guilty, whoever he is, however powerful he may be, I will take action," Antony said.