CAG report reveals Railway’s failure to collect revenue, way leave charges, remit fare amount

In its report on the financial year 2016-17, tabled in Parliament on Friday, the CAG also observed that Central Railway had failed to realise ‘way leave’ charges of Rs 6.55 crore from 497 parties in its five divisions.

NEW DELHI: The Comptroller and Auditor General’s (CAG’s) report on Indian Railways has pulled up Central Railway, which includes the Pune Division, on several counts, including its failure to recover a revenue of Rs 3.06 crore from private parties as well as the failure of some ticket booking clerks to remit the collected cash with the authorities concerned.

In its report on the financial year 2016-17, tabled in Parliament on Friday, the AG also observed that Central Railway had failed to realise ‘way leave’ charges of Rs 6.55 crore from 497 parties in its five divisions. The Pune Division had reported the highest loss of revenue, to the tune of Rs 3.06 crore.

‘Way leave’ charge is the money charged by Indian Railways for allowing occasional or limited use of its land by a party for a specified purpose like passage, access to private houses and establishments, and laying underground pipelines for water supply and sewerage.

The CAG report stated the Pune Division had failed to realise ‘way leave’ charges worth Rs 3.06 crore from 2011 till the end of the financial year 2016-17. “In Pune Division, way leave charges were recovered from all 63 parties for the facilities provided to them for the first 10-year period, from 2001 to 2010. For the next 10 years, from 2011 onwards, bills for ‘way leave’ charges were not recovered by the railway division, resulting in non-recovery of ‘way leave’ charges to the tune of Rs 3.06 crore from 63 parties/firms,” stated the CAG report.

While Pune Division reported the highest loss of revenue, other divisions in Central Railway also reported similar losses. “In Mumbai and Bhusawal Divisions, as on March 31, 2017, an amount of Rs 95.58 lakh and Rs 82 lakh were outstanding towards ‘way leave’ charges, against 408 parties/firms, which were yet to be realised. In Nagpur Division, an amount of Rs 2.53 crore was outstanding against 26 parties/firms,” said the report.

However, Manoj Jhavar, spokesperson for Pune Division, said since the CAG’s inspection, the administration had managed to recover 25 per cent of the pending amount. “The department concerned has informed that since April 2017, we have recovered 25 per cent of pending ‘way leave’ charges and we are corresponding with the parties concerned to recover the rest of the amount,” said Jhavar.

The CAG report also pointed out the ‘admitted debits’ by staffers, such as some booking clerks who did not deposit the collected fare amounts with authorities, as well as the administration’s failure to recover them.

In various Central Railway divisions, outstanding balance under ‘admitted debits’ was Rs 56.27 lakh by the end of March 2017. Though half-yearly reviews were conducted by Central Railway authorities and the results reported to the Railway Board, no concrete efforts were made to recover the outstanding amounts, stated the report.

These debits were pending for considerable periods, ranging from nine months to 33 months, in all five divisions — Pune Division (Rs 6.63 lakh), Mumbai Division (Rs 20.59 lakh), Bhusawal Division (Rs 25.09 lakh), Nagpur Division (Rs 3.50 lakh) and Solapur Division (Rs 0.47 lakh).

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