CAG pulls up Railways for loss of Rs 34.12 cr | business | Hindustan Times
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CAG pulls up Railways for loss of Rs 34.12 cr

business Updated: May 26, 2007 13:41 IST
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Comptroller and Auditor General of India (CAG) has pulled up Railways for ignoring norms laid down for the transfer of Railway land resulting in the loss of Rs 34.12 crore.

In its report for the year ended March, 2006, the CAG said while Railway Code for the Engineering Department stipulates that in all cases of disposal of railway land, the amount payable would be equivalent to the market price as on the date of transfer.

But Vijaywada Municipal Corporation (VMC) paid only a token amount of Rs 50 lakh for 25.30 acre land.

The Railway Board agreed (August 1995) in principle to remove a portion of branch line passing through Sathyanarayanpuram and to relinquish land to the extent of 25.30 acres provided suitable alternative land of equivalent value was given within the municipal limits of Vijaywada besides depositing the cost of construction of enabling works.

The Board, however, modified in June 1996 their decision as per which VMC had to pay a token amount of Rs 50 lakh only towards cost of enabling railway works alongwith suitable alternative free hold land, the CAG said in its report presented to the Parliament.

It further said that though different proposals of VMC for equitable exchange of land at Ajitsinghnagar were made, they were not accepted.