Supreme Court directs Railways to act on negligence of officials

Admin

Apex Court also directs to take corrective measures on CVC report within 3 months and send report to SC registery

Complaint before the Special Judge #CBI relates to #fraud and siphoning off crores of Rupees, causing huge revenue loss to #Railway exchequer, by inter alia undervaluing the sales of vends (such as Cafe Coffee Day, Priya Gold and Tibbs Frankie), depositing less amount in Railways than actually generated, overcharging the articles and allowing them to operate without valid licenses, in violation of the Railway Board Catering Policy.

Especially read para-‘D’ that is a very serious observation of the CBI

Taking note of the extensive irregularities and administrative lapses pointed out by the Central Vigilance Commission (#CVC) in the functioning of commercial stalls/vends at Chhatrapati Shivaji Maharaj Terminus (#CSMT) in Mumbai (one of the largest Railway terminus stations in the Central Railway Zone as well as the country), the Supreme Court has directed the #IndianRailways to implement the report.

After issuance of the notice and, as directed by the court, on the allegation alleged in the private complaint, the report from the CBI, and as well as the CVC were sought. Those reports have been persuade by the court and under the head ‘conclusion’, the following observations made by the CVC-

  1. There were administrative lapses on the part of IRCTC.
  2. Divisional officials in the effective follow up to realise the outstanding dues.
  3. There is serious negligence on the part of divisional officials.
  4. Divisional officials believed in oral assurance given by the representative of defaulting firms.

Under the head ‘Responsibilities of Officials’, the following observations were made by the CVC-

  1. IRCTC administration may be held responsible for the huge outstanding dues till the transfer of the AVMS.
  2. Divisional officials may be held responsible for negligence on their part.

The aforesaid report of the CVC is required to be implemented on the part of the Railways. Court have seen the CVC indicated no mens rea to initiate the criminal action but indicated negligence on the part of the officials working there. However, immediate corrective measures were required to be taken by the Railways for the lapses on their part and to do the needful for upliftment of effective administrative functioning and services rendered by the #IRCTC.

In view of the foregoing, supreme court set aside the order dtd. 03.05.2017 passed by the Bombay high court. However, court direct that the report of the CVC shall be looked into by the railway administration and be placed before the competent authorities for taking action within one month and the corrective measures be taken within three months. A report to that effect be sent to the registery of the court for placing on record.

The apex court was hearing a Special Leave Petition (#SLP) of the CBI on dtd. 21.01.2025 against an Order, dt: 03.05.2017, passed by the Bombay High Court, dismissing an application filed by the CBI, challenging Order, dt: 17.09.2013 of the Special Judge CBI on the complaint of Ajay B. Bose, a Railway Booking Clerk for want of locus standi, observing that the said Order was neither challenged by the accused nor by the complainant.

The High Court had further observed that the said Order was challenged by the investigating machinery, which was sitting on that order and not acting upon it in the garb of the pending application.

Mr. Bose, in his complaint dt: 26.07.2013, to the Special Judge (Anti-Corruption) CBI, had stated that 7 Central Railway officials had committed massive fraud and siphoned off crores of Rupees, caused huge revenue loss to Railway exchequer, by inter alia undervaluing the sales of vends (such as Cafe Coffee Day, Priya Gold and Tibbs Frankie), depositing less amount in Railways than actually generated, overcharging the articles and allowing them to operate without valid licenses, in violation of the Railway Catering Policy.

The Special Judge, vide Order dt 17.09.2013, had directed the CBI to carry out investigation in the matter.

Appearing for the Respondent Mr. Bose, Akash Vashishtha, Advocate, argued that the CVC report pointed out massive and extensive irregularities in the functioning of the Railway authorities and officials, who were directly overseeing the affairs.

“The report, in fact, vindicates the contents of the complaint. The observations made in the Report say that there had been complaints against the licensees and that they failed to pay the license fees despite repeated notices,” Adv. Vashishtha argued.

“The report gives clear conclusions and fixes responsibility of the officials concerned,” submitted Adv. Vashishtha.