A shocking revelation by the Comptroller and Auditor General (CAG) report has exposed the Indian Railways’ financial mismanagement, resulting in a staggering loss of Rs 2,604 crore. The report highlights 33 instances of mismanagement, including loan issues, GST shortfalls, and unfair contract awarding.
One notable case involves Union Ministry of Railways incurring a loss of Rs 834.72 crore due to the irresponsible decision to pay interest on a loan for a development project in Mumbai’s Bandra East which never materialised.
The report also points out non-recovery of GST and shunting charges, leading to losses of Rs 149.12 crore and Rs 13.43 crore in the East Coast Railway zone. The CAG report emphasises the need for proper management of tenders, loans, and projects to prevent such losses.
