New Delhi, Aug 9: The Comptroller and Auditor General of India (CAG) has flagged financial losses to the Indian Railways to the tune of Rs 2604.40 crore in 33 case studies of non-recovery of loans and GST, improper decision to generate non-fare revenues, ineligible grant of concession, and unfruitful expenditures.
According to the CAG, the instances mentioned in the report are those which came to notice in the test audit for the period 2021-22 as well as those which came to notice in earlier years, but could not be reported in the previous Audit Reports.
In one of these 33 cases, the CAG said that the Ministry of Railways suffered a loss of Rs 834.72 crore in interest it was forced to pay to a third party on a loan of Rs 3,200 crore it had extended to IRCON for development of a land parcel.
IRCON paid the loan along with interest but no development of the land parcel was done, it said.
It recommended the fixing of the responsibility for this huge loss and avoid “decisions for generating Non-Fare Revenue at the fag end of the financial year without conducting proper feasibility studies.”
In another case, the CAG found that the Railways didn't levy charges for shunting activity of engines resulting in loss of revenue of Rs 149.12 crore from 2018 to 2022 in East Coast Railway.
“Bills for Shunting charges may be preferred as required vide Ministry of Railway's Circular of February 2009 for utilisation of Railways' engine (s) for shunting activity in siding premises. Responsibility may also be fixed for the lapse resulting into loss of revenue to Railways,” it recommended.
A case of non-compliance to Goods and Services Tax (GST) provisions regarding levying of GST on services provided by the Railways to Siding owners has also been flagged by the financial watchdog which resulted in non-collection of Rs 13.43 crore from siding owners.
It asked the Railways to realise the outstanding GST from the Siding owners at the earliest to avoid loss to the exchequer and fix a responsibility “at appropriate level for non-implementation of the provision of the GST notification.”
