Scam Worth Rs. 243 Crores in the Indian Railways Disclosed by The Vigilance Department

A routine check by the Vigilance Department has disclosed details of a mammoth scam related to the Indian Railways. The scam involves extra payments of whopping sums of money to national oil companies from which the Indian Railways procures HSD or High-Speed Diesel.

Details of The Scam

The North East Frontier Railways conducted an audit which revealed that excess payments had been made to some national oil companies like Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd in violation of clause 12(a) provided in the rates chart of the contract with the Railway Board. The extra payments to these national oil companies tallied up to 243 crore rupees.

The reason behind the excess payments made is a rate charged by national oil companies, which is 25-40% higher than the general MRP in local petrol stations in the zone. The Indian Railways has been recommended to “set up a system to avoid such irregularities in future.”

Other Transactions under Review

The Vigilance Committee has informed that transactions going on in another zone are also under the lens of scrutiny for some inconsistencies. The Committee will be looking into transactions performed in a total of 16 zones. A senior Southern Railways officer said, “The Indian Railways purchase HSD in huge quantities, and even a small change will run into several crores of rupees.”

For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true and top stories of the world.