Freight evasions: Top Cos gained from non-compliance of rules in booking & delivery of iron ore in UPA Regime

New Delhi: In a major exposé, the CAG said on Friday that Tata, Essar, Jindal, Rungta and Kalyani were among the firms that gained from freight evasions through non-compliance with rules for booking and delivery of iron ore by railway.

The scam, spread over five years from 2008 during the UPA regime, caused a loss of more than Rs 29,000 crore to the Railways.

In its report tabled in Parliament on Friday, the CAG said the evasion of freight and non-imposition of penalty for irregular allowance of concessional rate for ferrying iron ore for domestic use were major reasons behind the monumental loss.

“The Audit Report highlights the deficiencies in compliance with laid-down rules and procedures in booking and delivery of iron ore at domestic rate by concerned Railway officials that resulted in a financial loss to the extent of Rs 29,236.78 crore,” says the report.

According to the report, there was freight evasion of Rs 12,722.65 crore and non-imposition of penalty to the tune of Rs 11,418.16 crore due to partial submission or non-submission of documents, or submission of invalid documents. Non imposition of penalty caused a loss of Rs 5,095.97 crore for diversion for trading the iron ore transported at domestic rate.

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