Northern Railway failed to recover Rs 55.51 crore in the District Mineral Foundation (DMF) in the land license fee from five government-aided schools in nine zonal railway, from the Comptroller and Auditor General of India for Financial Erace and Folding.
In its compliance audit report on the Railways for the year to end on March 2023, which was placed in the Lok Sabha on Monday, the CAG found a consolidated pattern of small recovery, avoidable expenditure, mismanagement and potential revenue in a total of 25 cases, due to violation of specific entities rules, regulations or instructions of the railway.
Five of the most important findings are the failure of Northern Railway in the recovery of Rs 148.61 crore in land license fee from government aided schools, despite that clear instructions for charging 6% of the market value of the land. This was the largest single non-rivalry quoted in the report.
The CAG has also found that a total of nine zonal railway-south-south western, north, north, eastern coast, eastern, eastern, northwest, south east, central, west and Central Railway-have failed to recover Rs 55.51 crore from contractors from January 2015 to 2024 in the District Mineral Foundation (DMF).
Another important discovery in the CAG report, for unbearable shunting activities using railway engines, the East Central Railway has to lose Rs 50.77 crore due to non-realization of shunting charges in Bina Side (BCSK). The audit was held for a period from April 2020 to March 2023.
The national auditor also said that Southern Railway and Integral Coach Factory (ICF) constructed a total of 28 Nilagiri Mountain Railway (NMR) meter gauge coaches for Rs 27.91 crore without adequate technical evaluation or consultation with research, design and standard organization (RDSO).
“ICF did not comply with the instructions of the Mor (Ministry of Railways) in developing a prototype coach in consultation with RDSO, due to which NMR coaches even after three years of construction were manufactured and reduced assets of NMR coaches.
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Similarly, there are some other conclusions that South Central Railway received a “avoidable financial liability” of Rs 23.16 crore in late fees due to the renewal of license for very high frequency (VHF) sets.
The Central Railway suffered an additional expenditure of Rs 15.62 crore on the road under the Bridge (Rab) in the Diva-Panvel-Jasai-Janept section on the Western dedicated Goods Corridor (WDFC), which due to non-farming for non-farming, the state government did not contribute to its share.
The report stated that South Central Railway amended the provisions of the contract, irregularly reimbursed the contractors on the allegations of Rs 15.51 crore. Western Railway suffered a revenue loss of Rs 12.62 crore from June 2021 to September 2023, which has been said to restrict freight loading, due to non-delayed upgrade for high axle-load capacity.
Similarly, the North Eastern Frontier and South Central Railway did not realize Rs 12.76 crore in maintenance and inspection fee from India’s container corporation due to non-performance of formal agreements.
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The bridge over a road without ensuring road work by the South Western Railway State Government was constructed as a result of the non-genealion of Rs 11.81 crore in the capital blocked for more than five years (2018 to 2023).
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