TIAs’ CONFERENCE   -  26TH AND 27TH JUNE 2003  -  CHENNAI

 

EXECUTIVE SUMMARY.

 

                                  

            Southern Railway organized a two day TIAs conference at the Zonal level on 26th and 27th of June, 2003 at Chennai. The workshop was attended by TIAs of Southern and South Western Railways.

 

            The welcome address was given by Shri M Jeychandren, FA&CAO/WST and the key note address by Smt.Vijayalakshmi Viswanathan, FC. Other guests included Shri V Anand, General Manager, Southern Railway, Shri S Parthasarathy, FA&CAO/MAS and Shri Thomas Verghese, CCM/MAS who also addressed the gathering.

 

            The main subjects deliberated during the sessions were:

(1)   Deficiencies in PRS and ARTS systems – case study of Pre-Bought Ticketing.

(2)   Alternative system on remittance of station collections.

(3)   Leasing of SLR space.

(4)    Reorientation training to TIAs in line with the advancement of technology.

 

Other topics discussed during the sessions were:

(1)   Improvements in ticket checking.

(2)   Suggestions for improvement of station earnings – Augmentation of revenue.

(3)    Frauds and serious irregularities detected.

 

            The conference was organized to highlight the need for a review of the existing systems  and practices in the light of various changes in technology, policy and methodology, and to identify areas requiring modifications with a view to improve them.

 

 

 

 

                                                                                                            sd/-

                                                                                                (T Hema Suneetha)

                                                                                                Dy.CAO/T/MAS

 

 

 

 

 

 

 

 

 

 

SESSION I: DEFICIENCIES IN PRS AND ARTS SYSTEMS: THE GREY AREA OF PRE-BOUGHT TICKETING (PBT).

 

            The existing deficiencies in PRS and ARTS system were explained with illustrative examples duly emphasizing the need to correct them. The concept of PBT which is prone to misuse was deliberated at length. The ticket authority number fed by the operator is not susceptible for verification by the system, which is an inherent deficiency in the concept of PBT. The possibility of misuse causing loss of revenue is manifold  under PBT mode as the details regarding “date of journey”, “from station”, “to station”, “class of travel”, “number of passengers” can be manipulated while ticketing. A case-study of mis-use of PBT mode by operators was presented along with relevant statistics (percentage of tickets purchased in PBT mode under MAS server).

 

            While it was agreed by one  and all that PBT is prone to frauds and irregularities, there was also another school of thought that felt that Railways may stand to lose a certain percentage of its customers by withdrawing the telescopic benefit, which in turn would effect the occupancy ratio. However, it is to be noted that the genesis  of PBT could be traced to a time when there were no direct trains between several pairs of points. The passengers desirous of availing telescopic benefit could opt to travel by the direct trains available now. Also no telescopic benefit is offered by  the road transport sector.

 

Suggestions:

(1)    Disable the provision of PBT,  a privilege which has already been denied to TTEs and  passengers seeking reservation through Internet (e-ticketing): After deliberating for long, it was felt that a reference would have to be made to Board for a decision.

(2)    Till such time, generate a (daily) report on PBT at each location, to enable Accounts (concurrent audit staff) to exercise necessary checks.

 

 

SESSION II: ALTERNATIVE SYSTEM ON REMITTANCE OF STATION COLLECTIONS.

 

            The existing system of remittance of station collections was elaborately explained duly drawing attention to the drawbacks noticed. The present system of  movement of cash chests in trains is used for transporting cash and vouchers not covered under the system of remittance through banks. A need for an alternative mechanism was felt as the prevailing system was serving a limited purpose of moving a small portion of cash and vouchers of all the stations. Two separate systems were proposed, one for transmitting voucher and another for transmitting cash.

 

 

 

System suggested for remittance of cash:

      Abolition of TCCs and compulsory remittance of station collections into bank , especially those stations that conform to the norms laid down for remittance into banks. Local police escort  to be arranged at places where RPF is not available.

      For stations with less amount of transactions, a commercial staff from the adjoining junction station should visit these stations with RPF escort once in three days or once in a week (periodicity determined on the average volume of transactions) to collect the sealed cash bags and CR challan. Cash of intermediate station(s) received at junction station will be remitted in the nominated bank.

 

System suggested for remittance of vouchers:

      Various agencies identified for transmission of vouchers through courier system are: (1) private couriers, (2) departmental couriers and (3) mail bags conveyed by RMS.

      The intermediate stations would bundle (seal) the vouchers and transmit them daily through guards of nominated trains to junction stations. Deploying couriers for collection of vouchers to each station is practically not feasible. Instead couriers would visit the (nominated) junction stations for collection of mailbags for onward transmission to Accounts Office. Acknowledged copies of voucher remittance note would be sent to junction stations through empty mail bags. The junction station in turn will arrange for their distribution  to the respective intermediate stations.

 

Advantages of the proposed system:

(1)     Due to abolition of TCC, the released space can be utilized for movement of parcel traffic.

(2)     Accumulation of cash at stations (cash-in-transit) for want of conveyance would be avoided.

(3)     Reduction in cash handling.

(4)     Regularity in the remittance of station earnings can be ensured.

(5)     Information regarding cash and voucher will be available early at Accounts office.

(6)     Incidence of unacknowledged CR notes at stations would be reduced.

 

Suggestions:

(1)    At present couriers are being used for handling goods RRs. Linking with these couriers for transmitting vouchers as well would help. As a trial measure, the suggested system can be implemented over any one section of a Division. If found feasible and effective, it may be extended to other sections and Divisions to ultimately cover the Zonal Railway.

(2)    Frequent surprise checks by Inspecting officials (TIAs) would ensure there is no mis-use of accumulated cash  at intermediate stations.

(3)    The facility of direct remittance of cash into banks should be extended to stations with earnings of Rs.20 lakhs (reduced from the present 40 lakhs of rupees) to cover many small stations as well.

(4)    Enter into an MoU with corporate banks to look into the business of cash handling/ collection.

 

 

SESSION III:LEASING OF SLR SPACE.

           

      With a view to maximize the utilization of the unutilized SLR space of various Mail/Express trains, the scheme of leasing SLR space was introduced by the Ministry of Railways during the year 1994.  The following are some of the grey areas in this scheme, wherein clear policy guidelines are not available:

 

(1)   Categorization of trains: The norms to be adopted for categorization of trains as “Premier Parcel Service” and “Standard Parcel Service” based on the percentage utilization of the parcel space in trains have not clearly been spelt out.

(2)   Reserve Price and Last Accepted Rate:  Whether the Reserve Price should be fixed with reference to the “type of service” (Rajdhani; Mail/Express & Shatabdi; Other Mail/Express & Shatabdi and Ordinary passenger trains) which is fairly low or should it be based on the “Last Accepted Rate”, which is fairly high?

(3)   Pre-vetting of Reserve Price: Railway Board’s circulars on the subject matter do not clearly specify the need for pre-vetting of “Reserve Price” arrived at by Commercial branch.

(4)   Earnest Money Deposit: Previously, five times the GPS rate was being collected as EMD. No guidelines are available under the rationalized scheme. It has also not been stated whether the EMD should be collected five times the Reserve Price or five times the “highest type of service”.

(5)   While in Works and Stores tenders, the cost of tender form is based on the “value of the work/ supply contract”, there are no specific guidelines on cost of tender forms in case of earnings contracts.

(6)   Formation of Tender Committee: The Standing Committee nominated for finalization of earning contracts is based on “total value of the earnings accruable to railways on leasing of SLR/VPH space by several trains” or “the train-wise earnings on account of leasing for a period of 1/2/3 years”.

(7)   Since, pre-payment of freight is compulsory and no advance freight is also being collected, the firm should not be allowed to load if he fails to pay for the day(s) he has not loaded during the previous day(s). However, if the party fails to load for more than five days (since, Security Deposit is held for an amount equivalent to five days accepted/leased rate), process for unilateral termination of contract and alternative source of ”day-to-day” leasing should be explored.

(8)   Overloading in SLR: Whether the contractor is liable to pay an amount equal to double the “Rajdhani” (previously luggage rate) rate on the excess weight in addition to the lump sum rate chargeable under the leasing contract? In addition to the above charges, whether any “on the spot penalty” can be imposed by the Inspecting Officials to act a s a deterrent? Can the agreement be terminated if more than three instances of overloading are detected during the currency of the contract?

(9)   Marking of sick: SLR/VPU coaches are usually certified sick by Group ’C’ staff. In the light of the fact that the sick marking vis-à-vis not loading the SLR, has sizeable  financial implications, it is desirable that the sick certificate of SLR/VPU for the trains for which leasing contracts are available should be done/ approved at least post facto by a Group ’B’ Officer of Mechanical Department. This would ensure that there are no mal-practices or nexus between the SLR leasing contractor and the sick certifying official. 

(10)        Holidays: Can the tenderer be asked to explicitly specify the number   of days and dates of holidays (for a particular year) during which he would not be able to operate the leased SLR/VPU rather than state as “National/ Central/ State Government holidays”?

 

 

SESSION IV: REORIENTATION TRAINING OF TIAs IN LINE WITH THE ADVANCEMENT OF TECHNOLOGY.

           

           With the advancement of technology and its application in ticketing system such as PRS, ARTS, UTS, Credit card transactions, Internet booking, there is dire need for re-orientation of the training to be imparted to the TIAs which would help them to carry out their checks more effectively. At the same time, there are certain developments like “Computerization of coaching refunds”, “Platform tickets vending machine” which have financial implications and form a part of checks to be exercised by the TIAs. Hence, the need for imparting training to the TIAs to keep them abreast of the latest developments. It was decided to formulate a training module for the TIAs with the assistance of CRIS.

 

      A PRS terminal for the purpose of carrying out accounts checks should be provided to access PNR history, check release of accommodation, name change, special cancellation, luggage ticket free allowance verification, utilization of emergency quotas, tickets lost, system BPTs verification and other functions.

 

      Accounts representative should also be part of the data base administration in PRS/SPTM and other new systems in the offing like FOIS. 

 

 

 

OTHER TOPICS DISCUSSED.

     

(I) IMPROVEMENTS IN TICKET CHECKING.

 

At present, the Sleeper TTEs check only the Passengers tickets and allot berths against available vacancies. Their role as called for in the ticket checking manual is not being fully exercised, namely:

·        ensuring the genuineness of the PRS/ARTS ticket.

·        detecting cases of TOT (Transfer Of Ticket).

·        verification of the Original Travel Authority quoted in the PRS ticket.

·        excessing of those passengers who travel without ticket.

 

The counter earnings that would otherwise be realized at the Booking Office are systematically canvassed by the squad TTEs. Targets set are being achieved by issuing extension journey ticket on short distance/ platform ticket duly collecting the penalty from passengers. There is a need to redefine the target for the Squad TTEs only through penalty collections.

 

Suggestions:

(1)   Penalty should be increased steeply.

(2)   Demarcation of jurisdiction of Squad TTEs.

(3)   Squad TTEs quoting false ticket numbers in (certain) EFTs should be taken up under DAR.

(4)   Squad TTEs should be directed to quote all the original ticket particulars in the EFT issued, collect the original ticket(s) from the passenger(s) and forward the same along with returns to Traffic Accounts Office for internal checking.

(5)   As Squad TTEs are not aware of the available vacancies, they should                     be debarred from issuing (higher class) conversion tickets.

(6)   Squad TTEs should not be allowed to issue “Journey Extension Tickets” (JETs). Issue of EFTs by them combining higher penalty and journey extension should be completely stopped. Only Sleeper TTEs should be authorized to issue JETs.

(7)   Random/ regular check of TA journals of TTEs with their movement register may act as a deterrent.

 

 

 

 

 

 

 

 

 

(II) SUGGESTION FOR IMPROVEMENT OF STATION EARNINGS -AUGMENTATION OF REVENUE.

 

(A) GOODS:

(1)   Revision of Minimum Weight Condition (MWC): De-Oiled Cake in powder form with MWC of 500 quintals and in pellet form with MWC of 480 quintals should be uniformly charged at 500 quintals as is being done in case of Rice bran de-oiled cake (powder or pellet form) which is being uniformly charged at 530 quintals.

(2)   Upward revision of classification: The MWC of Match Splints per 4 wheeler is 75 quintals at class 155. The lorry freight for carrying (6 tonnes) this commodity is approximately Rs.26,000/- and the rail freight for carrying 11-12 tonnes loaded in each BCX wagon is  also the same (considering in both cases a distance of 2238 kms Ex Coimbatore North to Ultadanda (Kolkata)). Hence, there is a scope for enhancing the classification in respect of this commodity.

 

(B) COACHING:

(1)   Explore the possibility of extending various concessions to print media and press on a “reciprocal” basis. Concessions should be extended  to only those firms who are willing to allot valuable advertising space for the exclusive use of railways.

(2)   Revision of weight for charge in case of two-wheelers is necessitated as the actual weight of certain motor cycles  attract levy of “bulk surcharge” whereas they are being charged for a fixed weight.

(3)   Cycle stand contractors occupy more space than the actual area earmarked. License fee of cycle stand contractors should be revised in accordance with space occupied by them at the time of periodical/ surprise checks.

(4)   Space below the window level of passenger coaches should be canvassed for advertisements.

(5)   “Integrated logistics solutions” should be explored i.e., entering into an agreement with road transport owners for door to door delivery of parcels will ease out the congestion at stations.

(6)   Introduction of “De-reserved” classes in all trains for the portion covered during day time.

(7)   The number of cases detected by Squad TTEs should be the yardstick for fixing of targets rather than “earnings”.

(8)   The profitable “non-core” activities have been “privatized” and railways have been left with the non-profitable/ unpopular segments. The possibility of offering “profitable” with the “non-profitable” activities as a package deal needs to be explored.

 

 

 

 

(III) FRAUDS & SERIOUS IRREGULARITIES DETECTED DURING 2002- 2003.

 

(1)       Write –off of 10% “to-pay” surcharge at Millavittan Port Siding (MVTS):

A debit for an amount of Rs. 1,08,588/- was raised against MVTS station on account of delayed realization of FCNs tendered by M/s Madras Cements Limited/TYSG in 21 cases for want of funds in Indian Bank/Trichy. During the periodical inspection of the station, it  came to notice that a special credit was afforded by Sr.DCM duly obtaining approval of DRM to write off the amount due to the railways. As finance concurrence is necessary for cases exceeding Rs.5,000/-, the party remitted the amount exceeding Rs.5,000/- and then cases were processed for “write-off”.

 

Follow-up action: A debit for Rs.98,363/- was once again raised against the station during November 2002 and the issue was brought to the notice of Sr.DCM vide a D.O. letter. Division is now exploring the possibility of recovering from the refund amounts due to the party.

 

(2)        Non-receipt of goods cash at West Hill Station:

Investigation of a case of excess remittance of Rs. 10,000/- pertaining to West Hill station of 26.11.2002, brought to light the non-receipt of goods cash amounting to Rs.1,23,060/- which was not remitted to Cash Office. CR Note nos. 537359 of 27.04.2002 (Rs.70,180/-), 527889 of 17.09.2002 (Rs. 16,200/-) & 523798 of 26.11.2002 (Rs.36,680/-) were found not to have been acknowledged by Cash Office at Chennai.

 

Follow-up action: The case has been brought to the notice of DRM/PGT  to order an enquiry with officers from Accounts, Commercial, Security & Cash Office with a view to fix staff responsibility. The case has been subsequently handed over to Vigilance for further investigation.

        

(3)        Manipulation of BPT using medical concession form at Pollachi (POY)    booking office:

When instances of frequent short remittances and alterations of station records were reported by the section TIA, Headquarters TIAs were deputed to carry out a detailed investigation in January 2003. The station staff resorted to misappropriation of railway cash by manipulating the Blank Paper Tickets (BPTs). The passenger foils of the BPT were prepared for “correct fare” and parted with. The accounts and record foils were manipulated as having been issued against orthopedic concession. Further, a careful close examination of the  10 record foils reveals that the amount accounted is only Rs.178/- as against the sum of Rs.2,649/- which has actually been collected from the passengers (as can be made out). The permanent misappropriation of an amount of Rs.2,471/- has been established from the following basic records:

·        Two record foils of the old (already used) BPTs revealed over-writing.   These were used as the “outline” for preparation of accounts and record foil in two instances.

·        All these 10 BPTs were issued on the same day and were accounted for against the same orthopedic concession.

·        When the record foil was smeared with a carbon paper, the underlying impressions revealed the actual fare that has been collected from the passenger.

 

Efforts made to collect the passenger foils at various destination stations did not yield any fruitful results as the practice of collecting tickets at stations has been dispensed with.

 

Follow-up action: The case was immediately brought to the notice of DRM/MDU for taking up with the erring staff. The case has also been handed over to Vigilance branch in May 2003.

 

(4)       Weighment of inward SLR/VPH traffic at Bangalore (SBC):

A surprise check of the parcel traffic arriving by Train No. 2628 (Karnataka Express Ex. NDLS to SBC) was conducted in September 2002 and the consignments received by following firms were checked and the following lapses noticed:

 

 

Particulars

Name of the firm(s)

M/s Green Carriers

M/s Andhra Cargo

M/s Gati

 

Permissible weight (in tones)

 

4.000

 

4.000

 

23.00

 

Weight on re-weighment (in tonnes)

 

4.090

 

4.359

 

13.78

 

Therefore, excess loading (in kgs)

 

90

 

359

 

-NIL-

 

Undercharges on account of excess loading (in Rs.)

 

 

889

 

 

3556

 

 

-NIL-

 

On the spot penalty imposed (in Rs.)

 

 

1000

 

 

5000

 

 

-NIL-

 

 

 

 

 

As a follow-up, a check (weighment) was conducted by team of TIAs in February 2003 for the parcel traffic arriving by Train No. 2628 and the following irregularity was noticed:

Name of the firm                                :M/s Pankaj Cargo.

Permissible loading                          : 4.000 tonnes

Weight on re-weighment                  :  4.874 tonnes

Excess loaded                                  :      874 kgs.

Undercharges levied                        : Rs. 14,832/-                        

 

On review of leasing contract of M/s Gati by Train No. 6222 (Ex Mysore to MAS), it came to notice that the firm was permitted loading at MYS and enroute loading at SBC for a total brake van space of 4 tonnes on payment of freight of Rs.1,000/- per day (to be paid at MYS). On 01-05-2002, the firm sought for exemption from loading at MYS and the amount was also not paid. However, the party did not disclose about the exemption sought at MYS and loaded at SBC and unloaded at MAS, without paying any freight. The case was treated on par with “general parcel scale rate” and amount has been debited against the firm.

 

(5)       Manipulation of ARTs tickets through printer at Tanjore (TJ):

Audit of the collected tickets at Chennai Egmore revealed a mis-match between the pre-printed and system generated numbers. Detailed investigation at Tanjore revealed a fraud perpetrated by the booking clerk through deliberate manipulation of the printer for printing high value tickets on saved stationery, but accounting for a low value ticket in the system. Railway cash to the tune of Rs.89,540/- has been embezzled over a period of one year.

 

A special check was undertaken at all the other ARTS locations during August 2002 and detailed investigations revealed similar irregularities at three more locations – Trivandrum (TVC) for Rs.27,485/, Katpadi (KPD) for Rs. 7,199/- and Bangarpet (BWT) for Rs. 738/-. The modus operandi at TJ, TVC, KPD and BWT has been the same and does not in any way differ from the fraud detected at Jallandar (Northern Railway) or in other Railways.

 

The modus operandi is as follows:

·        A low value ticket viz., platform ticket was accounted for in the system but not printed on the ticket stationery. In the process, a blank ticket stationery is saved.

·        The saved ticket stationery is used to generate a high value ticket (with a mis-match in the pre-printed and system generated number) and the same is being issued to the passenger.

·        The next ticket is removed and submitted to Accounts stating ‘not printed properly’. The same is being done to off-set the mis-match.

·        The accountal of the high value ticket in the system is being nullified by generating a “Non-Issued” (NI) ticket next. The operator then misappropriates the difference in amount.

 

Although, collected tickets did not form the basis for raising debits at these three locations, blank tickets produced in support of NI tickets were decoded and reconciled with hard copy, to arrive at the amount.

 

Follow-up action: The case has immediately been brought to the notice of the DRMs concerned for taking up with the delinquent staff.

 

(6)       Missing tickets at Guduvancheri (GI) station:

During the (joint) surprise check conducted at Guduvancheri station by Vigilance (assisted by TIAs) branch in July 2002, a case of  missing tickets pertaining to Urapakkam halt from the ticket stock available at the depot station (GI) had come to notice.  The value of tickets missing was assessed at Rs.63,416/-. The section TIA during his periodical inspection in Oct. 2002, followed by a special check by Headquarters TIAs in Jan. 2003, cases of missing tickets valued at Rs.1,118/- & Rs.26,690/- respectively were detected further.  Necessary debits have been raised against the station for the above amounts. The case is under investigation  by the Vigilance department.

 

(7)       Excess payment of laundry charges to contractor :

During the course of periodical inspection of Tuticorin station on 25/10/2002, the section TIA noticed and reported a case of excess payment of laundry charges to the bed roll contractor. The TIA observed that the contractor entrusted with the supply of bedrolls for upper class passengers to Train no.6731/6732 (Ex.TN to SBC & back), has been claiming laundry charges for the entire carrying capacity of the upper class coaches, viz., 2A coach with a capacity of 46 berths and 3A coach with a capacity of 64 berths, and not for the actual number of passengers who were travelling in the said coaches.

 

Follow-up action: The report was forwarded to DFM/MDU for review of the case. The amended reservation charts along with the ‘washing bills claimed statement’ submitted by the contractor for the period from April 2002 to April 2003 were review by the Division and it was assessed that Rs.64,785/- was paid in excess to the contractor, which would be recovered from the future bills. The Commercial Supervisor who has  certified the bills is being taken up under DAR & the contractor is being black-listed for all future works.     

 

(8)       Missing tickets at Athipattu (AIP) station:

During the periodical inspection during November 2002, followed by a  special check on the ticket stock in December 2002, section TIA detected printed card tickets missing to the tune of Rs.11,215/- at the station. The amount was remitted on 31.12.2002, vide Money Receipt No.418203.  The irregularity occurred on account of non-maintenance of ticket stock register and improper handling of the ticket stocks received from TPF/TPJ.

 

Hema Suneetha T., DyCAO/T/SR