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Home»India»Short recoveries, lost revenue cost Indian Railways Rs 543 crore: CAG | India News
India

Short recoveries, lost revenue cost Indian Railways Rs 543 crore: CAG | India News

July 23, 2025No Comments4 Mins Read
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From non-recovery of Rs 148.61 crore in land licence charge from 5 government-aided faculties by Northern Railway to 9 zonal railways collectively failing to get better Rs 55.51 crore in District Mineral Basis (DMF), the Comptroller and Auditor Common (CAG) of India has flagged monetary irregularities and inefficiencies totalling Rs 543.17 crore by varied zones and discipline models of the Indian Railways.

In its compliance audit report on Railways for the yr ending March 2023, which was tabled in Lok Sabha on Monday, the CAG discovered a constant sample of brief recoveries, avoidable expenditures, mismanagement and lack of potential income in a complete of 25 instances, which occurred as a result of violation of guidelines, laws or directives by particular entities of railways.

Among the many most vital findings is Northern Railway’s failure in recovering Rs 148.61 crore in land licence charge from 5 government-aided faculties, regardless of clear directives to cost 6% of market worth of the land. This was the most important single non-recovery cited within the report.

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The CAG has additionally discovered {that a} whole of 9 zonal railways — South Japanese, South Western, North Central, East Coast, Japanese, North Western, South East Central, West Central and Central Railway — collectively didn’t get better Rs 55.51 crore in District Mineral Basis (DMF) contributions from contractors from January 2015 to March 2024. The quantity is DMF is used within the curiosity and good thing about individuals and areas affected by mining-related operations.

One other key discovering within the CAG report is East Central Railway shedding Rs 50.77 crore because of non-realisation of shunting expenses at Bina siding (BCSK), for unbilled shunting actions utilizing railway engines. The audit was carried out for a interval from April 2020 to March 2023.

The nationwide auditor additionally stated that the Southern Railway and Integral Coach Manufacturing facility (ICF) manufactured a complete of 28 Nilgiri Mountain Railway (NMR) meter gauge coaches for Rs 27.91 crore with out ample technical evaluation or session with the Analysis, Design and Requirements Organisation (RDSO).

“ICF didn’t adjust to the directions of MoR (Ministry of Railways) in growing a prototype coach in session with RDSO, which led to creation of ineffective and poor property at a value of Rs 27.91 crore as NMR coaches weren’t put to efficient use even after three years of producing,” stated the auditor.

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Equally, another findings are that South Central Railway incurred an “avoidable monetary legal responsibility” of Rs 23.16 crore in late charges because of delayed renewal of licences for Very Excessive Frequency (VHF) units.

Central Railway confronted additional expenditure of Rs 15.62 crore on Street Underneath Bridges (RUBs) in Diva-Panvel-Jasai-JNPT part on Western Devoted Freight Hall (WDFC) because of non-adherence to price apportionment directions, with the state authorities not contributing its share.

South Central Railway irregularly reimbursed Rs 15.51 crore in seigniorage expenses to contractors, by amending contract provisions with out the Ministry’s approval, the report stated. Western Railway suffered a income lack of Rs 12.62 crore from June 2021 to September 2023 because of non/delayed improve of routes to increased axle-load capability, proscribing freight loading, it stated.

Equally, Northeast Frontier and South Central Railways didn’t realise Rs 12.76 crore in upkeep and inspection expenses from Container Company of India as a result of non-execution of formal agreements.

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South Western Railways development of a highway over bridge with out guaranteeing method highway work by the state authorities resulted in Rs 11.81 crore in blocked capital for greater than 5 years (2018 to 2023) and non-elimination of stage crossing.

dheeraj mishra

Dheeraj Mishra is a Principal correspondent with The Indian Categorical, Enterprise Bureau. He covers India’s two key ministries- Ministry of Railways and Ministry of Street Transport & Highways. He incessantly makes use of the Proper to Data (RTI) Act for his tales, which have resulted in lots of impactful stories. … Learn Extra



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