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JD-U accuses Lalu of giving undue favour to service provider

The state JD(U) charged Railway Minister Lalu Prasad with bestowing undue favour to an on board service provider.

Published on: Feb 5, 2007, 20:58:00 IST
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The state JD(U) charged Railway Minister Lalu Prasad with bestowing undue favour to an on board service provider for supplying bedrolls to passengers in air-conditioned coaches at low cost and urged Prime Minister Manmohan Singh to order a probe.

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HT Image

At a press conference, State JD(U) chief Rajiv Ranjan Singh, alias Lalan Singh, and senior leader Shivanand Tiwari claimed that huge 'extortion' from pantry car contractors was going on in full swing. "It was precisely for this reason that PK Goyal was appointed Managing Director of Indian Railway Catering and Tourism Corporation (IRCTC)", they asserted.

Singh and Tiwari said that they would take the issue to court and would also raise it in Parliament insisting that several rackets were flourishing in the Indian Railways. They stated that IRCTC was being run in flagrant violation of norms. Referring to the racket in supply of bedrolls, they said, AC class passengers were being charged Rs 25 per bedroll, while the tender was finalised at Rs 18. "This will lead to a net loss of Rs 307 crore to Indian Railways", the JD (U) leaders said.

 
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