CAG Flags Financial Irregularities in Indian Railways Leading to Massive Losses

The Comptroller and Auditor General of India (CAG) has identified financial irregularities in Indian Railways resulting in losses amounting to Rs 2604.40 crore. The audit revealed improper decisions, non-recovery of loans, GST non-compliance, and unfruitful expenditures. The report recommends fixing responsibility to prevent future financial mismanagement.

The Comptroller and Auditor General of India (CAG) has flagged significant financial irregularities in Indian Railways, resulting in a staggering loss of Rs 2604.40 crore. Key issues highlighted include non-recovery of loans, GST non-compliance, improper revenue-generation decisions, and various unfruitful expenditures.

According to the report, these issues came to light during the 2021-22 test audit, along with some unresolved instances from previous years. Of particular concern is a loss of Rs 834.72 crore in interest paid by the Ministry of Railways on a loan extended to IRCON, as no development occurred on the related land parcel.

The CAG recommends immediate remedial actions, including fixing responsibility for the negligence, conducting feasibility studies before making revenue decisions, and ensuring compliance with GST and other financial regulations to prevent future losses.

(With inputs from agencies.)