A U-Turn that Raises Questions on MTRS

Alarming Instance of criminal collusion between a private Company and few greedy officials of MCF and Railway Board

It’s truly an #irony of the highest order that while the #Vigilance Directorate of the #RailwayBoard, in consultation with the #CVC, has instructed Modern Coach Factory (#MCF), Raebareli to ban the business with M/s Hindustan Glass Fibre Works Ltd., the same #Board has simultaneously advised #MCF to award new #contracts worth approximately ₹450 Crore to this #vendor. The power of money and greed in this situation is both unprecedented and astonishing.

The background in brief is as under-

Following investigation into a #PIDPI-complaint, the #RailwayBoard Vigilance, in consultation with the CVC, advised MCF to impose a ban on business dealings with M/s Hindustan Glass Fibre Works Ltd., Vadodara, due to their #illegal and #unethical misconduct in not wrapping the #cushioning materials (#PUFoam) with the mandated #fire-barrier-cloth for #manufacturing seats and berths for new coaches. This #misconduct posed a significant risk to the lives of millions of traveling #passengers. The issue was brought to light through a joint vigilance check in the coaches in service, prompted by a #PIDPI complaint, which led the CVC to order an investigation.

The Railway Board Vigilance, adhering to established protocol, instructed MCF to initiate the suspension of business dealings as a preliminary step to banning M/s Hindustan Glass Fibre Works Ltd. However, swayed by #bribes, MCF officials, specifically #PCMM & #PCME, flagrantly disregarded the directives of the Board and CVC. Instead of advancing with the business ban, they appealed to the Railway Board for #leniency, albeit indirectly. The Board responded with astonishing speed, promptly granting MCF clearance to place additional orders of more than 450 Crore on the same #firm, all while ignoring their prior recommendation to ban the firm. This is clearly seen in the attached letters dated 24.07.2024 and 01.08.2024.

MCF’s request to the Board and the Board’s response is a perfect example of the old adage, “जो रोगिया चाहे, वही वैद फरमावे” This contradictory advice from the Railway Board, which goes against the Board Vigilance and CVC directives, is not only unprecedented but also highlights the #Corruption entrenched at the highest levels of the Board.

Following crucial facts are important in this case-

• Their primary argument against banning hinges on the assertion that the offending #vendor is their main #contractor, and thus, banning them would adversely impact #production. This reasoning implies that the vendor has become indispensable to the #Railways, making them immune to any action regardless of the severity of their misconduct, even if it poses #Safety hazards. Such an argument is absurd and demonstrates that #corrupt officials are willing to go to any lengths to protect their favored vendor.
• Additionally, this raises the question of why all #contracts are being awarded to this particular vendor or his affiliates. The answer lies in the fact that the #RailwayBoard has tailored the #eligibility-conditions so specifically that, for all practical purposes, it has made these contracts proprietary to M/s Hindustan Glass Fibre Works Ltd and its affiliates. #Railwhispers has consistently published detailed articles exposing this issue, but thanks to Member Traction & Rolling Stock (#MTRS), no action has been taken, and he maintains a deafening silence.
• Now reverting back to the instant case, it is mentioned that since beginning, the #specifications for #PUFoam required it to be wrapped with fire barrier cloth. Subsequently, various #stakeholders raised concerns, arguing that PU Foam releases #toxic gases when ignited. Additionally, the specifications did not #mandate the testing of critical Fire and Smoke Tests (#FST) properties. Without passing these essential tests, the use of PU Foam presents significant safety hazards.
• In response to these representations and complaints, the Railway Board established a high-level committee chaired by PED/QA/Mechanical, #RDSO. The committee’s report recommended that all tests related to #FST properties, as outlined in tables R6, R18, and R21 of EN 45545, be made routine and that every batch of PU foam undergo these tests before being used in coaches. Following the acceptance of the committee’s recommendations, the specifications were revised, and the requirement for fire barrier cloth was subsequently eliminated. This is documented in #PCME/MCF letter No. M-400/MCF/RBL/Turnkey/Fur/LWACCNE/21-22 and 22-23, dated 05.12.2022, addressed to #AM/PU.
• Thus, it is evident that the requirement for fire barrier cloth was eliminated after December 2022, and only after the introduction of the upgraded PU Foam specification. From 2018 until December 2022, the use of fire barrier cloth was mandatory, and contracts were issued accordingly. However, M/s #Hindustan Glass Fibre Works Ltd, along with their sister concern M/s #CMT and collaborator M/s #ACME, never provided the fire barrier cloth, opting instead to cut costs and increase their #profit margin, albeit illegally. This fact was known to all #Mechanical officers, who turned a blind eye under the influence of bribes. It is important to highlight those #seats and #berths are among the most critical components in a #passenger coach. Past fire incidents in coaches have demonstrated that most fatalities were caused by the toxic gases emitted from PU foam used in manufacturing these seats. To prevent the spread of fire, specifications were revised in 2018, requiring that PU foam be wrapped with fire barrier cloth and then covered with a top layer of #Rexene.

• Here, it would be pertinent to mention that Both M/s Hindustan Glass Fibre Works Ltd, Vadodara, and M/s CMT Mechanized System, Vadodara are under the control of the same group of individuals and operate in coordination. For any uncertainties, kindly refer to the judgment of the Chennai High Court in WP No. 25008 of 2021 and WA No. 194 of 2022, delivered on 01.02.2022 and 28.04.2022, respectively. These #judgments resulted from a #complaint filed by the Integral Coach Factory (#ICF). While the Single Bench found them culpable of forming a #cartel, the Division Bench acquitted them on the grounds that the mens-rea behind the #cartelization was absent. However, of utmost significance, they ruled that the Competition Commission of India (#CCI) should proceed with its investigation into the charge of cartelization, and their #judgment would not impede such an inquiry.
• As regards M/s ACME, they merely sublet the contract to M/s Hindustan Glass Fibre Works Ltd. Cross-verification of origin and invoices of #turnkey materials sourced by them against previous contracts shall stand testimony to this fact. More authentic and documentary #evidence is the Inspection Certificate issued by the #Rites against the past contracts, which clearly states that against Contracts placed on M/s ACME, inspections were done at the premises of M/s Hindustan Glass Fibre Works Ltd, Vadodra. In addition, tracking the payment trail between both of them is not a challenging task to establish this open truth.

07 June, 2024: Fire breaks out in Daulatpur-Sabarmati express train in Jaipur

Given the aforementioned facts, the following critical issues highlight blatant undue and illegal favoritism and a deliberate attempt to conceal misdeeds-

• MCF officials failed to act against M/s Hindustan Glass Fibre Works Ltd despite the CVC’s and Board’s Vigilance recognition of the severity of the situation and the directive to ban business dealings. Instead, they indirectly requested the Board to favour the firm for extraneous considerations.
• The then PCME, Mr S. S. Kalsi, overruled the recommendations for administrative and legal action against the vendor made by the then #CVO/MCF.
• Considering the risk posed to millions of passengers’ lives, an #FIR should have been lodged against the vendor, which was not done.
• The investigation was limited to materials supplied under one inspection certificate dated 05.03.2020, ignoring similar misconduct from 2018 to December 2022. This fact was conveniently overlooked, likely due to bribery.
• Only a lower-level #RITES inspector has been targeted, while higher officials equally involved were let off. This is evident from their violation of CVC and Board Vigilance directives to ban the business, as they continue to place further contracts.
• Close affiliates M/s CMT and M/s ACME, who also engaged in similar irregularities, have not been subjected to the same scrutiny and investigation.
• The investigation was limited to MCF, despite the same vendor committing similar illegal acts with contracts placed by Rail Coach Factory (#RCF), Kapurthala as well.
• In the absence of any advisory to other Zonal Railways and Production Units about the pending advice of banning the business, they continue to place contracts on them.

Vendor is a habitual offender

It is imperative to note that the vendor-M/s Hindustan Glass Fibre Works Ltd is a habitual offender. For instance, in 2017-18, they were awarded contracts for furnishing a significant number of AC Chair Cars. According to the specifications, they were required to provide #silicon foam as the cushioning material. However, in blatant violation of these specifications and without the knowledge or approval of the contract-placing authority, they colluded with concerned officials to substitute the mandated silicon foam with PU foam, which is considerably cheaper—nearly one-third the price of silicon foam. No recovery was ever made for this egregious breach of contract. The records still reflect these violations, yet due to an ongoing and unchecked #criminal-nexus, no action has been taken. This pattern of misconduct has persisted unabated, with undue favours continuing to be granted under the influence of bribery.

#Fire_Safety से खिलवाड़ करने वालों को मिल रहा समर्थन #MTRS की भूमिका संदेहास्पद बनाता है
रेलहित में स्वतंत्र सोच रखना अफसरों का धर्म है,पर ये विधर्मी-जिस गरीब को संरक्षा/सुरक्षा देने का दम भरते हैं-दोमुहें हैं
जिसे #BlackList होना था-उसे 450Cr का ऑर्डर-समझ से परे है@RailMinIndia pic.twitter.com/vB7Jyo0DNm

— RAILWHISPERS (@Railwhispers) August 1, 2024

The vendor was correct

Reliable sources have revealed that the #vendor is in continuous contact with #MTRS in the #RailBhawan, as well as #PCMM/MCF and #PCME/MCF. These officials have assured the vendor that, irrespective of the circumstances, they will ensure no punitive action is taken against the firm. Furthermore, they have guaranteed that contracts worth ₹450 Crore, will be awarded to the vendor. Initially, we were concerned when the vendor assured MCF officials that he would secure a favorable response from the Railway Board shortly. We dismissed it as mere bravado, believing it inconceivable that the Board would act contrary to the Vigilance Directorate’s advice, which is grounded in CVC recommendations. However, given the Board’s rapid and favourable response, it is now evident that the vendor was correct in asserting his ability to ‘manage’ the Board.

Central Vigilance Commission (#CVC) and Railway Board should look into the aforementioned facts and take action against those who are responsible for these willful misconducts.