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PAC to now look into iron ore freight evasion scam |
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NEW DELHI: Parliament's Public Accounts Committee is looking into a less talked about, but staggering, scandal in the Indian Railways, in which almost Rs 30,000 crore can be recovered from iron ore exporters who misused a concessional freight charge meant for domestic consumption.
Exploiting the subsidized rate which is just about one-fourth of the rate for exports, several companies moved iron-ore to ports and shipped them, mostly to China since 2008. A CAG report tabled in Parliament last month had said that the iron ore freight evasion scam led to a loss of Rs 29,236 crore for Indian Railways between 2008 and 2013.
Sources said PAC, headed by Congress MP Prof K V Thomas, would be visiting Kolkata from June 11 to 13 to look into the scandal, and issues regarding tatkal tickets. The entire scandal was first exposed in 2011 by Kolkata based South-Eastern Railway, and ever since several agencies including CBI have been investigating the issue.
Despite the CAG report making official widely suspected fact that if railways recover money owed by iron ore exporters it could change the very fortune of the transporter's modernization programme, there has been little concerted effort from the government. With the PAC stepping in, many in the railways and outside are hoping that there would be sharper spotlight on the entire scandal.
The CAG report pointed out that revenue loss had resulted from manipulations in the dual freight policy introduced in 2008, under which the railways charged less for transporting iron ore for domestic use and about four times for export movements.
"The audit report highlights the deficiencies in compliance with the rules in booking and delivering iron ore at the domestic rate by the railway officials concerned, which resulted in a financial loss of expected goods earnings to the extent of Rs 29,236 crore," the CAG report said.
The CAG calculated freight evasion of Rs 12,722 crore, and non-imposition of penalty to the tune of Rs 11,418 crore, and a penalty of Rs 5,095 crore. The CAG audited records from 87 loading points in seven railway zones and 180 unloading points in 15 zones.
Source : timesofindia.indiatimes.com
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