2023: Railway employees topped the list of corruption complaints in India, with 10,447 complaints filed against them, according to a report by theCentral Vigilance Commission (CVC).[Times of India]
A complaint before the Special Judge (CBI) alleges massive fraud and siphoning of crores of rupees, leading to significant revenue losses for the Railway exchequer. The case involves undervaluation of sales at vends (such as Café Coffee Day and Tibbs Frankie), underreporting of revenue to the Railways, overcharging customers, and allowing vendors to operate without valid licenses, all in violation of the Railway Catering Policy.
Taking cognizance of serious irregularities and administrative lapses flagged by the Central Vigilance Commission (CVC) in the operation of commercial stalls at Chhatrapati Shivaji Maharaj Terminus, Mumbai, the Supreme Court has directed the Railways to implement the CVC’s findings.
The Court emphasized the need for immediate corrective action by the Railways to address lapses in its administrative functioning and the services rendered by IRCTC.
While setting aside the Bombay High Court’s Order dated May 3, 2017, the Supreme Court directed:
✅ The Railway administration must review the CVC report and present it to the competent authorities within one month.
✅ Corrective measures must be taken within three months.
✅ A compliance report must be submitted to the Court registry for record.
CBI’s Appeal Against High Court’s Order
The case reached the Supreme Court via a Special Leave Petition (SLP) filed by the CBI, challenging the Bombay High Court’s dismissal of its application against a September 17, 2013, Order of the Special Judge (CBI). The High Court had rejected the CBI’s challenge, stating that:
1️⃣ The accused and complainant had not contested the order, and
2️⃣ The investigating agency had delayed action, citing a pending application.
Whistleblower’s Complaint & Allegations
The complaint, filed on July 26, 2013, by Mr. Ajay B. Bose, a Railway Booking Clerk, alleged that seven Central Railway officials were involved in financial misconduct, including:
➡️ Undervaluing sales from major vendors (e.g., Café Coffee Day, Tibbs Frankie).
➡️ Depositing less revenue with the Railways than actually collected.
➡️ Overcharging customers in violation of railway policies.
➡️ Allowing vendors to operate without valid licenses.
Special Judge’s Order & Investigation
Based on the complaint, the Special Judge (CBI), in an Order dated September 17, 2013, directed the CBI to investigate the matter.
Legal Arguments & CVC Report
Appearing for the Respondent, Advocate Akash Vashishtha argued that the CVC report substantiated the complaint’s allegations, exposing widespread irregularities within the Railway administration.
🗣️ “The report vindicates the complaint’s claims and highlights multiple instances of non-compliance by licensees who failed to pay fees despite repeated notices,” he submitted.
He further argued that the report clearly identifies responsible officials and provides conclusive findings on mismanagement.
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