Railways lost Rs 573 cr through financial lapses in FY23

The Comptroller and Auditor General of India (CAG) has flagged a loss of over ₹573 crore through financial lapses and operational inefficiencies from revenue recovery, asset management, and project execution fronts in the the ministry of railways for the year ending March 2023, among others.

In its report tabled in the Lok Sabha on Monday, the national auditor said it has covered 25 key audit observations based on test audits conducted up to FY23, with updates from subsequent periods where applicable. The report was first tabled in Rajya Sabha in April this year.

The report highlights persistent challenges in revenue management, contract enforcement, and planning that CAG said could undermine the sector's reform ambitions. As per the report, railways registered a loss of ₹148.61 crore of land licence fees by Northern Railway from five government-aided schools, due to non-compliance with Railway Board directives.