CBI files chargesheet in rail scam

The CBI on Friday filed a chargesheet against two former chief commercial managers of railways, a businessman and eight companies for allegedly causing a loss of Rs 19.5 crore to the railways by selling cheaper packaged water in place of Rail Neer. Sources in the CBI said that charges of criminal conspiracy, cheating and provisions of Prevention of Corruption Act have been brought in the charge sheet filed at Patiala House court here on Friday. Sources further said that the agency has kept open the probe into the case as the loss calculated is only for Northern Railways and figures may increase as the agency plans to expand investigations to 16 other zones as well. Those who have been named in the chargesheet include the then CCMs (catering) M.S. Chalia and Sandeep Silas, CEO of R.K. Associates, Rajeev Mittal, director of the company, Sharan Bihari Agarwal, besides private companies Satyam Caterers, Ambuj Hotels, P.K. Associates, Sunshine Caterers, Doon’s Caterers, Vrindavan Food Products, Food World and RD Sharma and Sons.

It is alleged that the “accused had shown favour to these private firms in supply of cheap packaged drinking water (PDW) other than mandatory Rail Neer on premium trains, including Rajdhani and Shatabdi Express”, sources said.

“During searches at various places, including Delhi/Noida at the residence and official premises of private caterers, huge cash of about Rs 28.5 crore (approx) was recovered. A large number of incriminating documents were also recovered from the premises of the accused,” sources said.

“Investigations have revealed that during the period January 1, 2013, to December 31, 2014, the licensee caterers had allegedly not picked up Rail Neer as per the quota prescribed by IRCTC and supplied other cheap brands of Packaged Drinking Water that were not allowed in Rajdhani and Shatabdi trains. They had allegedly claimed reimbursement from Northern Railway as was prescribed for supply of Rail Neer. As per railway agreement/guidelines, except Rail Neer, no other brand of PDW was approved by the Railway for supply in Rajdhani and Shatabdi trains originating from Delhi,” said the CBI in its probe report. “It has been revealed that there was an alleged undue gain of Rs 19.55 crore (approx) to the contractors/licensee and loss to the government exchequer in Northern Railway,” sources said.