In the rivalry of Mechanical & Stores department, MCF under CBI radar

The graft is to the tune of Rs 800 crore every year, and is being shared amongst some officers only

The tug of war is for the share in this sum, a mechanism should be brought to curb such activities immediately

The CBI, Lucknow branch has received a complaint regarding massive corruption taking place at the Modern Coach Factory (MCF), Rae Bareli, to the tune of approx Rs 800 crore every year and is being shared between some officers.

MCF has turned out 1425 coaches in 2018-19 and likely to gate out 2000 coaches in 2019-20. Assuming an average cost of one coach of Rs. 2 crore, it means the total procurement of almost Rs. 2850 crores in the year 2018-19 and average Rs. 4000 crores in 2019-20.

As per the complaint, at least 15% to 20% of the total cost of approximately Rs.4000 crore that MCF spent on manufacturing the about 2000 LHB coaches in the FY 2019-2020, has allegedly been spent as commission and bribe on senior officials posted at MCF.

The complaint has named retired and serving senior railway officers of the rank of Principal Chief Material Manager(s) – who are responsible for finalising the tenders and the firms who eventually get the orders – as the beneficiary of this corrupt practice.

The complaint dated 18.05.2020, which has been sent to S. K. Khare, who heads the Lucknow branch of the CBI, has given the breakup of the bribe that is allegedly charged at every stage by these officers from the vendors who participate in the bidding process for production of the coaches.

As per the contents of the complaint, given the stages are as under-

1. Finalisation of the tender – 2-3%

2. Issuance of RO at depot level – 1%

3. Charge in inspection clause – 2-3%

4. Charge in DP with LD – 1%

5. Charge in DP without LD – 2-3%

The purchase order, as per the complaint, is only issued after the money has been paid by the firms/vendors/suppliers and the officers concerned goes for the firms inspection to collect their share of commission.

The complaint has also stated that many safety features installed in these coaches were being approved by the officials concerned without RITES inspection – which is also an part of corruption – even though this was being done as sub-standard products were being installed in these coaches by the vendors to increase their profit margin in lieu of the bribe that they were giving to the officials.

In some cases, as per the complaint, the payment of many vendors amounting to lakhs and crores of rupees, the contract of which has already been executed, are stopped by the officers who replace the existing one in order to seek commission for themselves.

The exchange of the commission, as per the complaint, takes place outside Rae Bareli after the officers avail leave or inspection program and travel to other “safe” places to take their commission.

One complaint of M/s Vibgyor, mentioned in the complaint, is still under investigation, where the firm was not given developmental order, which otherwise was technically suitable in case of LSCN/G tender, as tender acceptance authority gave developmental order in LSDD case, this needs further investigation, aslo demanded in the above complaint.

The complainant also requested that he get the charges investigated by the Railway Board Vigilance and the CBI and keep his name confidential otherwise he may lose his life.

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