CAG flags financial loss of Rs 2,604 cr to Railways in 33 case studies

The Comptroller and Auditor General of India (CAG) has flagged financial losses to the Indian Railways to the tune of Rs 2604.40 crore in 33 case studies of non-recovery of loans and GST, improper decision to generate non-fare revenues, ineligible grant of concession, and unfruitful expenditures. According to the CAG, the instances mentioned in the report are those which came to notice in the test audit for the period 2021-22 as well as those which came to notice in earlier years, but could not be reported in the previous Audit Reports. In one of these 33 cases, the CAG said that the Ministry of Railways suffered a loss of Rs 834.72 crore in interest it was forced to pay to a third party on a loan of Rs 3,200 crore it had extended to IRCON for development of a land parcel. IRCON paid the loan along with interest but no development of the land parcel was done, it said. It recommended the fixing of the responsibility for this huge loss and avoid "decisions for generating Non-Fare ...