Recently, there has been an attempt from some persona non-grata to tarnish the image of Konkan Railway in general and its Managing Director in particular.  Konkan Railway desires to issue the clarifications on the issues raised, as an attempt has been made to mis-guide the employees of Konkan Railway. 

01.   Transfer Order of Staff: In terms of Central Vigilance Commission’s Guidelines forwarded by Ministry of Railways Letter No. 2008/V-1/CVC/1/4 dated 18/02/2009 addressed to all Zonal Railways/ Production Units & PSUs, officials manning the sensitive posts should be rotated every four years to avoid developing vested interests.  Any violation in this regard was required to be intimated to the Advisor (Vigilance) and CVO of the Ministry of Railways.  In compliance of the instructions received from CVC and Ministry of Railways, transfer orders of staff have been issued without any bias, as KRCL has no option but to implement the guidelines of CVC.  

02. Selling of Konkan Railway Property:   At present, KRCL owns only two floors in the Corporate Office based at Belapur Bhavan, Navi Mumbai and three floors have been taken on lease from M/s. NPCL @ Rs.1,68,000/-  per annum per floor. Now, NPCL has asked KRCL to vacate the premises or pay lease charges at the current market rate i.e. @ 300% extra for each floor, which is not affordable and the same is being negotiated. 

Incidentally, there has been a DO Letter No.CM/GOI/2011-12/20822 dated 10-12-2011 from Hon’ble Chief Minister of Goa to the Hon’ble Minister of Railways for shifting of the Headquarter/Corporate Office of Konkan Railway from Belapur, Navi Mumbai to Goa.  It is clarified that even if the Corporate Office is shifted to Madgaon, there is no such proposal to sell off the properties at Navi Mumbai.   It appears that, with the incomplete information, some undesirable elements are trying to create misunderstanding and misguiding the staff.

03. 15% service charges levied on Konkan Region Urban Co-operative Credit Society Ltd.:  Konkan Region Urban Co-operative Credit Society Limited was founded by Konkan Railway Corporation Employees Union on 21st March 2000.  In this society, besides the Konkan Railway employees, others persons from Konkan region are also the members.  

As on 17th May 2010,there were about 551 KRCL Employees who are Members of this Credit Society out of total of 4500 Konkan Railway Employees. The Society is doing the business as a facilitator giving loans to the employees of KRCL and Other outside Members also.  It is pointed out that, out of 551, only 60 members have opted for Recurring Deposit, which is approx. Rs.13,400/- p.m. and 41 persons have taken loan for which, approx. Rs. 77,840/- p.m. are being recovered, which is quite negligible and insignificant. 

There were also complaints from KRCL employees in regard to high percentage of interest being levied on the loans taken. 

The Society had taken permission from the then MD for the facility of deduction of the amount / loan installments from the salaries of the employees and transferring the amount to the Co-operative Credit Society without levying any charges. As Konkan Railway Administration is providing them with the required Manpower, IT System and Stationery for recovery of loans and other business transactions, it was proposed to levy 15% Service Charges w.e.f. 15th February 2012.  These services   cannot be provided free of cost  by Konkan Railway, as it is already incurring heavy expenditure on this account.

It is also pointed out that, the formation of this Co-operative Credit Society for which the permission was granted by the then MD, had no approval of the Board of Directors of Konkan Railway and therefore, the Society’s formation and the approval of Konkan Railway is ab-initio wrong.

At present, this Credit Society is occupying space / premises in Madgaon Railway Station Complex, for which vacation proceedings were initiated on 12th September 2011 as per the Order issued by the Estate Officer/ Karwar Region, as the Society had not paid the dues to Konkan Railway since 2001.  The Court has also passed an Order to immediately pay the outstanding balance of Rs.2,43,196/- and to vacate the premises within a year’s time.  

04. Transfer of Provident Fund of the Employees to EPF Authorities &  Discontinuation of Pension / Family Pension Scheme:  There is no such proposal of transferring Provident Fund to EPF Authorities and discontinuing the existing Pension/Family Pension Scheme.  The Scheme is being managed and implemented in-house as per the extant guidelines of DPE and Govt. Of India.  All the Accounts of Konkan Railway Corporation Ltd. are being audited by Comptroller & Auditor General of India (CAG).   

It is requested that wide publicity may kindly be given to this Press Release in your Esteemed Newspapers, so that the Employees of Konkan Railway are not misguided by the undesirable elements, particularly when Konkan Railway Administration is working well within the framework of the rules and regulations laid down by DPE and Govt Of India.


                                                                                                     ( Siddheshwar Telugu )

Chief Public Relations Officer