Huge Scam Exposed In The Purchase Of Diesel By Railways

According to railway sources, a huge scam in the purchase of diesel by the North East Frontier Railway has been exposed following an audit of HSD purchase.

A routine preventive check by the Vigilance Department has exposed a huge scam in the purchase of High Speed Diesel (HSD) by the Indian Railways from national oil companies in one of the zones.

According to Railways sources, an audit of HSD purchase by the North East Frontier Railway revealed excess payment to the tune of ₹243 crore made to the Indian Oil Corporation Ltd. and the Bharat Petroleum Corporation Ltd. during January-September 2022.

The investigators informed the Railway Board of the irregularity and directed the Principal Financial Advisor, North East Frontier Railway, to recover the excess payment made to the oil companies. While asking other zones to check if any excess payment was made at their end, the Vigilance Department urged to “set up a system to avoid such irregularities in future”.

Payments under scanner

After the alert, payments made to national oil companies across the 16 zones of the Indian Railways have come under the scanner. “We will conduct an internal audit to check the payments made to oil companies. We are aware of the scam in another zone. The Railways purchase HSD in huge quantity and even a small change will run into several crores of rupees,” a senior official in the Southern Railway told The Hindu on Monday.

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The North East Frontier Railway operates trains with diesel locomotives across five divisions — Tinsukia, Lumding, Rangiya, Alipurduar and Katihar — and purchases HSD in large quantities, the official who preferred not to be quoted said.

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