Parl panel finds irregularities in award of ad contracts in railways

A 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 Railway.

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.