Mumbai Division fails to recover fine on hoardings
Central Railway Head Quarters - Chhatrapati Shivaji Maharaj Terminus (CSMT) - Mumbai
It is necessary to blacklist all such fraudulent firms by registering an FIR against them, but on the contrary railways try to save their skin
Mumbai Division, Central Railway allows for installation of hoardings in the railway premises but in case of additional space in violation of permission, it imposes fine and recover it from the contractors.
But the Central Railway has failed to recover 100 percent penalty from M/s lakshya Media Limited, a violator of the terms and conditions and this has been disclosed by an RTI query filed by RTI activist Anil Galgali.
In RTI reply says that out of Rs 1.91 crore, only Rs 78.24 lakh has been recovered so far and Rs 1.13 crore is still outstanding.
RTI activist had sought information from Central Railway about the hoarding companies using more space than the allotted, action taken and penalty levied in the last 5 years.
Senior divisional commercial manager of Mumbai Division, Central Railway Gaurav Jha replied that M/s lakshya Media Limited was found to be using more space during the year 2019-20.
The said firm was allotted 27600 sq ft of space under the agreement but it was found using 2000 sq ft more space in addition to the distributed space.
A fine of Rs 1.91 crore was imposed in the case. M/s lakshya Media Limited has paid only Rs 78.24 lakh and yet to pay Rs 1.13 crore.
The railways argue that the company has a bank guaranty of Rs 5.75 crore on the same contract and a security deposit of Rs 65.73 lakh is deposited with Byculla ROB.
On the question of blacklisting the Company, Railway claims that there is no provision for blacklisting on use of more space as per tender, only fines can be imposed in such cases.
Activist pointed out that this is not only a matter in this case, but it is very rampant and the number of such cases of violation and outstanding fine can be voluminous.
He also advised that it is necessary to blacklist all such fraudulent firms by registering an FIR against them, but on the contrary railways try to save their skin. Otherwise, it should levy 100% penalty and recover it.
Writing to Railway Minister Piyush Goyal, Chairman, Railway Board, General Manager, Central Railway Sanjeev Mittal, Anil Galgali has demanded action against the railway officials who have not taken strict action into the matter and blacklist such fraudulent firms by registering an FIR against them.
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