CAG Finds ₹543 Crore Lapse In New Delhi’s Railway Planning
In a stark warning to policymakers and administrators, a government audit has exposed financial lapses across various divisions of Indian Railways amounting to over ₹543 crore. According to a report tabled in the Lok Sabha, the Comptroller and Auditor General (CAG) identified systematic failures in revenue recovery, technical oversight, and compliance with internal protocols across multiple zones. These irregularities—ranging from delayed licensing to uncollected fees and underutilised assets—raise serious concerns about efficiency, transparency, and accountability in one of India’s most critical public transport sectors.
Among the most striking findings was Northern Railway’s failure to collect ₹148 crore in land licence fees from several educational institutions occupying railway land, despite explicit provisions mandating market-linked recovery. Equally troubling was the nearly ₹56 crore shortfall in contributions to the District Mineral Foundation Fund across nine zones. This fund, designed to support communities affected by mining operations, remained unutilised due to long-standing non-compliance by contractors and inadequate enforcement by officials—undermining both social equity and environmental justice goals. The audit also criticised the East Central Railway for failing to bill over ₹50 crore in shunting charges at the Bina siding, where train engines were reportedly deployed without formal documentation or charges.
In Southern India, the report flagged technical lapses in the manufacture of Nilgiri Mountain Railway coaches worth ₹28 crore, built without vetting from the Research, Design and Standards Organisation. These assets, now considered inefficient and substandard, exemplify how bypassing expert oversight leads to fiscal waste and diminished safety in public infrastructure. Other costly missteps included the South Central Railway incurring over ₹23 crore in penalties due to delays in renewing wireless licences. Western and Central Railways, too, were faulted for excess expenditure and missed revenue from delayed infrastructure upgrades and administrative delays. In Karnataka, capital worth nearly ₹12 crore was blocked for five years due to a road-over-bridge being constructed without prior clearance for approach roads—rendering the asset unusable and failing to eliminate a critical level crossing.
The cumulative effect of these financial misjudgments is not just monetary loss but erosion of public trust in a sector that forms the backbone of Indian mobility. As cities strive to become smarter and more sustainable, efficient and corruption-free rail services are crucial for reducing carbon emissions and enabling equitable growth. The CAG’s findings call for urgent institutional reforms and stricter enforcement of compliance norms to align public spending with national development goals and environmental responsibility.
