Parl panel finds
irregularities in ad contracts of Railways
RSTV, April 12, 2017
parliamentary committee has found irregularities in award of
contracts of advertisements in the mumbai division of the
railways and recommended a CBI inquiry into it.
The Public Accounts Committee (PAC) in its latest report has
noted the irregularities in award of contract of advertisements
on a first come, first served basis which was prevailing in the
Mumbai division for the last 25-30 years.
All contracts which were allotted on the basis of the first
come, first served basis for commercial publicity should be
terminated with immediate effect, the PAC headed by KV Thomas
said in its report.
The committee has found that there was no transparency in award
of contracts in Central Railway and Western Railway.
The Mumbai division is part of Central Railway and Western
Taking note of the alleged fraud in allotment of advertisements
and involvement of railway officials which were inquired into by
the Central Vigilance Commission and action taken against a few
officials, the committee recommended a CBI inquiry to probe.
The CBI inquiry should probe the first come, first served policy
in Mumbai division, it said.
The committee is for strict action against erring contractors
and officials involved in the alleged fraud.
Unless and until exemplary punishment is awarded to the corrupt
officials from the top to the bottom, irregularities in
commercial publicity in railways cannot be rooted out, the
It has also highlighted the “lackadaisical attitude” of the
railways in utilising its vast resources for generating
additional revenue through advertising.
Taking note of the delay in tender finalisation for
advertisement at stations, the PAC report said railways have
taken longer than the stipulated period of 45 to 90 days and it
resulted in losses to the public transporter.
Recommending a review of the process of contract formulation and
execution, it has said that railways should “shed the nonchalant
approach of condoning delays” in finalisation of contracts owing
to precautionary approach.
The committee has also observed the lack of coordination between
It has suggested railways encourage the zones which earn maximum
revenue through commercial publicity by giving them incentives
to motivate others.
The PAC has also observed that the menace of unauthorised
displays at the stations was a constant source of leakage of
revenues of railways.
It has recommended exploring the feasibility of hallmarking of
authorised symbols for contracted advertisements to avoid
unauthorised hoardings and penalty for unauthorised publicity.
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