Railways levies Rs 10 lakh penalty on IRCTC

A Rs 10 lakh penalty has been levied on Indian Railway Catering & Tourism Corporation (IRCTC) by the Railway Ministry. In a statement, the national transporter said this action follows a complaint regarding food quality raised by a passenger in Patna - Tatanagar Vande Bharat Express.

“IRCTC has been penalised Rs 10 lakh, the service provider has been penalised with Rs 50 lakh, and ordered to terminate the contact,” the railways said, adding passenger safety and quality remain our top priority.

A passenger had complained of insect body parts being found in the meal served through an IRCTC caterer.


Sector watchers say this is among the highest penalties levied by the Railway Board on any caterer. IRCTC is a Central Public Sector Enterprise under Ministry of Railways.

In January this year, the Railway Board listed major reforms for better food quality, catering, and onboard services. IRCTC is presently serving approximately 16.50 lakh meals per day across Indian Railways.

As a proof of concept, IRCTC had attempted providing passengers with a diverse, restaurant-quality menu including local delicacies during travel in select trains, in December 2025.

A month earlier in November 2025, the Railways said it would allow established chains such as McDonald’s, KFC, Haldiram’s, Wow Momo and Baskin Robbins to set up outlets at its stations. After this, several leading global and Indian restaurants and cafes approached the Indian Railways, seeking details of the rules for opening premium food and beverages outlets at stations where they expect sales potential to be higher than in airports.