| Subject: |
Railways lags in recovering money due from iron ore shipment scam |
|
NEW DELHI: The Supreme Court may have cracked the whip on coal scam, but the railways continues to dither on a financial windfall it could make from iron ore companies that have misused its subsidized domestic freight rates to export to China.
The railways' reluctance to order a comprehensive investigation and initiate recoveries is all the more glaring because the Shah Commission has recommended a CBI investigation into the scam. While the CAG has projected Rs 17,000 crore recoverable for railways, a limited investigation has already established the staggering scale of the scandal.
In fact, indications are now emerging about not just a clear lack of interest on the part of the railways but certain reluctance in some quarters to vigorously pursue the case.
Dozens of big and little known companies have misused the differential freight tariff scheme introduced in 2008, offering a low domestic rate while charging higher rate for exports. A CAG audit said railways could recover at least Rs 17,000 crore from these companies, giving a boost to the cash-strapped transporter.
The Shah Commission report on illegal iron ore mining tabled in Parliament recently recommended a comprehensive CBI investigation in all railway zones that have transported iron ore. It also recommended that the investigation should be expanded to cover ore shipments from May 2008 till date. The investigation, which is just limited to southeastern railways, covers only 2008-11 period.
"It is suggested that railways should, through CBI, make an all-out effort to detect cases of such evasion in all the zones that might be transporting iron ore... The average difference between 'domestic freight rate' and 'other than domestic freight rate' was, in fact, at its maximum during 2011-12. Therefore, railways are advised to quantify this amount of freight evasion and institute recovery mechanism for the entire time period, starting from May 2008 till now. This is of paramount importance since the process for recovering the exact amount of escaped freight revenue has to be undertaken by railways themselves and would not, automatically, accrue to them, even in the event of a successful conclusion of any criminal investigation, undertaken by CBI," Shah Commission has said.
Sources complained that there was no effort from railways to pursue recoveries in 15 cases in which it has issued notices. The biggest of these cases, for recovery of Rs 660 crore from Kolkata-based Rashmi Metaliks, reflects railways' lack of enthusiasm. The company moved a writ petition in Kolkata High Court three years ago questioning the policy. Local railway authorities have served a new demand notice for fresh freight evasion by the same company, however recoveries cannot be carried out until the court delivers its judgment.
"I can't really understand why railways is not moving the Supreme Court, or putting together an SIT to recover the money. This is just unbelievable," a senior official who has known the case from close quarters said. "They (railways) have not even initiated investigations in most zones," he said. "When so much recoveries are possible, it is surprising that railways has to resort to embarrassing gimmicks such as stopping welcome drink in Rajdhani Express," he added.
Railways, however, defended its action against these companies. "CBI is investigating the matter. It was railways which unearthed the case and referred it to CVC. The CVC later on referred it to CBI," said a railway official.
"We had given notice to 17 companies for recovery. They went to Kolkata High Court where Indian Railways defended its case vigorously. The judgment is awaited," he added.
Source : timesofindia.indiatimes.com
|