Mechanical Vs Stores: “Authority is mine and responsibility is yours”

Real story behind the recent news reports of corruption in MCF/Raebareli – Facts Vs Fiction

Recent complaints against the Stores officials of Lalganj, Raebareli based Modern Coach Factory (MCF), which became viral appear to have been planted by vested interests. It is understood from reliable sources that Railway Board Vigilance has already ordered comprehensive investigation on each and every allegation and investigation is being monitored closely.

In the fitness of the matter, it would be just and fair to wait till investigations are completed and its outcome is known. However, while wild allegations have been levelled against almost all store officials, it is felt that the main objective of the complaint is to settle personal scores by aggrieved parties/ vested interests.

The reason is plain and simple – At all stages of materials procurement, User departments are actively involved. It is they who decide what is to be purchased, how much is to be purchased, specifications, drawings, eligibility criteria and conditions of the tenders.

After opening of tenders, technical scrutinies of the offers are done by the user department. In the tender committee also, the Stores officials is only one of the members. Other 2 members are from the user or technical and finance departments.

After receipt of materials, even quality issues are looked at by them only. In such situations, how come almost all officials of only one department are responsible for alleged acts of corruptions? This is almost saying that “Authority is mine and responsibility is yours”.

For example – while leveling allegations against Shreekant Rai (the then PCMM now retd), one case of M/s Vibogoyar has been prominently brought out by the Complainant. But the fact is – It was a HAG level case. Apart from Mr. Rai, PCME Anoop Kumar and PFA R. K. Manocha were also the tender committee (TC) members and were equally responsible for decision making.

Subsequently, their unanimous recommendations were accepted by the then GM Suneet Sharma. In such situations, how come only one officer from the stores department is responsible?

Needless to mention, for this reason alone, complaint appears to be grossly one-sided. It is learnt from reliable sources that complainant on this specific issue was made last year itself, which was investigated by the Railway Board Vigilance and they found nothing irregular and the case stands closed.

Similarly, an allegation with respect to change of inspection clause from RITES to consignee against WTC/GC is also baseless. Firstly, in order to meet with any exigencies/urgency, such changes at post-contract stage is permissible as per Railway Board’s letter No. 2017/Trans/01/policy dated 16.08.2018.

Secondly, and most importantly, the document in possession of “RailSamachar” reveals that such decisions in MCF are taken in rare cases in urgency at the level of PCME and GM. The Stores Department merely executes their orders.

While pre-dispatch inspection of materials is generally done by RITES, inspection clause is changed to either by consignee or against WTC in exceptional cases only on the specific recommendations of the user department.

The complainant has levelled an allegation of payment of bribe of Rs 25 lakhs for extension in delivery period of a contract placed on M/s Emprise Enterprise in January 2019. Interestingly, concerned firm M/s Emprise Enterprise, at no point of time, ever made any such allegations. They supplied the materials in Mid-2019 and contracts stands closed a year back.

Surprisingly, the allegation has been levelled after a year by someone, who is not even remotely concerned with this case. Secondly, on the face of it, the allegation appears to be ridiculous because the value of the contract itself is 3.0 Crores.

Whosoever knows Railway working shall not believe in it considering the value of purchase. As a matter of fact, extending delivery period is a routine exercise and in almost 95 percent contracts in Indian railways, delivery is extended with the usual penalty clause, which was done in this case. It’s a different matter that even for such an extension, Dy CME and CME/Production had made specific recommendations in this particular case citing urgency.

Case of Kennametal is a classic example and an eye opener to prove that if someone decides to come out of his comfort zone and keep employers’ interest on top, it is possible to achieve a bigger objective.

Documents accessed by “RailSamachar” reveals that MCF had been getting kennametal tools through a local Raebareli based authorised agent (Middleman). This arrangement was in operation for years.

Everyone was happy to maintain status-quo as it was suiting to all concerned. However, beginning January 2020, Concerned Stores officials put enormous efforts together as a team to convince OEM M/s Kennametal to deal with MCF directly.

They escalated the matter to the top level of this American multinational company. It took almost 7 months, but finally they succeeded in their mission and MD/Kennametal agreed to disengage the agent and started supply directly in July 2020. In result, rates came down drastically.

In this process, it’s a different matter that the one who was milking the Railway became aggrieved. Consequences are obvious and don’t call for further elaboration. As a matter of fact, taking a clue from this, other PUs can also attempt to convince OEMs to deal directly without any middleman in between.

Real story is quite different. In the last few years, MCF has become the den of corruptions in the garb of exponential growth especially between 2017-2019. Later, massive cleaning up operations were launched.

In January 2020, an investigation team of Railway Board Vigilance camped in MCF for months. In result, some big fishes are likely to be caught. They have now started feeling heat.

Reliable inside sources say that this complaint has actually been made with the intention to divert the attention from on-going investigation and to use it as a mental pressure tactics to wriggle out of their own wrong doings.

The Complainant has not given even a single documentary evidence to support his wild allegations of graft to the tune of an astronomical sum of Rs 800 Crores, said inside sources.

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