New Delhi: The Comptroller and Auditor General of India (CAG) has indicted Railways for its poor contract management practices and delays in finalising arbitration cases that has led to an avoidable payment of Rs13.31 crore as well as prolonged litigation.
“The large number of cases decided against the Railways indicated that the fault lay with the Railways for not following the contract management practices as prescribed by various codes and rules,” the CAG said in its report for the year ended March 2006.
To verify the efficacy of the system, the CAG reviewed the Arbitration Awards finalised between 2002-03 and 2005-06 in 12 of the 16 Zonal Railways and Metro Railway/Kolkata.
A total of 2,228 cases were dealt with during the years 2002-03 and 2005-06, it said adding that the maximum number of cases dealt with were in Northern Railway (348) followed by Central (290), South Eastern (276) South Central (239) and Eastern (235) Railways.
Of these, only 782 cases were finalised in the last four years and again of these finalised cases, 704 (90%) were awarded against the Railways resulting in payment of Rs49 crore, the CAG said in its report presented to Parliament.
The number of cases finalised, however, are highest in South Eastern (148) followed by Eastern (120) and South Central Railways (108) indicating poor performance in the speedy finalisation by Northern and Central railway.