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CAG Audit Flags ₹573 Crore in Lapses Across Indian Railways

A compliance audit exposed widespread gaps in revenue recovery, project execution and asset management across key zones.

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 ₹573 Crore Financial Irregularities in CAG Audit Report tabled on July 21 during the Parliament Monsoon Session.  | Image: X
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Overview

  • Audit Report No. 5 was tabled in the Lok Sabha on July 21, detailing 25 observations from test audits up to FY23 that uncovered ₹573 crore in fiscal and operational lapses.
  • Revenue management failures include Northern Railway’s shortfall of ₹148.61 crore in land licence fees and nine zones’ non-recovery of ₹55.51 crore in District Mineral Foundation contributions.
  • Operational oversights cost East Central Railway ₹50.77 crore by not levying shunting charges at Bina siding and blocked ₹11.81 crore in South Western Railway’s unused road over bridge.
  • Procurement irregularities in Northeast Frontier Railway led to an undue benefit of ₹9.4 crore to contractors and underutilised assets such as ₹27.91 crore in idle Nilgiri Mountain Railway coaches.
  • The audit’s findings underscore the need for stricter enforcement of board directives, tighter financial controls and improved interagency coordination to support Indian Railways’ reform agenda.