A damning report by the Comptroller and Auditor General (CAG) has revealed a colossal financial loss of Rs 835 crore incurred by the Indian Railways due to a series of missteps in a land deal in Mumbai. The state-owned rail behemoth’s subsidiary, IRCON, had secured a 4.3-hectare plot in Bandra East with the ambitious plan of developing it into a lucrative real estate asset. To fund the project, IRCON had taken a substantial loan of Rs 3,200 crore.
Despite fully repaying the principal amount along with a hefty interest of Rs 835 crore, IRCON has failed to materialize any development on the acquired land. A major setback came in the form of the termination of the lease agreement for the property. Even after this, the railways continued to service the loan and its associated interest, leading to the staggering loss.
The CAG report has sharply criticized this decision-making process, labeling it as “improper.” The audit body has called for a thorough investigation to identify the individuals responsible for this financial blunder. This incident serves as a stark reminder of the need for stringent financial oversight and prudent decision-making within public sector undertakings.
The CAG’s findings have raised serious concerns about the efficiency and accountability of the Indian Railways in managing its financial resources. As the national transporter grapples with various challenges, this loss further exacerbates its financial burden. The government is now under pressure to take corrective measures to prevent similar occurrences in the future and recover the lost amount.
