Central Railway fails to recover hoardings fines

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 per cent penalty from M/s laqshya Media Limited, a violator of the terms and conditions and this has been disclosed by an RTI query filed by activist Anil Galgali. RTI 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 hoardings companies using more space than the allotted space, action taken and penalty levied in the last 5 years. Senior divisional commercial manager of Central Railway (Mumbai Division) Gaurav Jha informed Anil Galgali that M/s laqshya 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 laqshya Media Limited has paid only Rs 78.24 lakh and yet to pay Rs 1.13 crore. The railways argue that M/s laqshya Media Limited company has a security deposit 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 m/s laqshya Media Limited Company, Central 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. 

Anil Galgali 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 such fraudulent firms by registering an FIR against them, but on the contrary railways try to save their skin. Otherwise, it should levy 100 per cent penalty and recover it. 

Writing to Railway Minister Piyush Goyal, Railway Board Chairman Vinod Yadav, General Manager of 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.