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Commercialpedia Indian Railways commercial circulars and policies

REPORTING AND INVESTAGATION OF LOSS OF

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Summary

authority concerned as to whether prosecution in a court or departmental action should be

Text of the circular

1 
CHAPTER-XI 
 
               REPORTING AND INVESTAGATION OF LOSS OF 
CASH, STORES OR OTHER RAILWAY PROPERTY. 
 
Losses, frauds and Embezzlements. 
 
Responsibility for Losses 
1101   
Report of Losses 
1102 - 1103 
Losses involving the Reserve Bank  
1104  
Investigation of Losses 
1105   
Legal Advice 
1106   
Laxity of Control  
1107  
Recoveries of Losses 
1108 - 1110 
With holding of Pension and Provident Fund Bonus 
1111 -  1112 
Police Investigation 
1113  - 1114 
Prosecution 
1115 - 1116 
Witness 
1117   
Appeal against Acquittals 
1118   
Reports to the General Manager  
1119 -  1120  
Departmental Inquiries 
 
Departmental Inquiries 
1121 - 1124 
 
 
 
*****

2 
CHAPTER XI 
 
REPORTING AND INVESTIGATION OF LOSS OF CASH, 
STORES OR OTHER RAILWAY PROPERTY 
 
LOSSES, FRAUDS AND EMBEZZLEMENTS 
 
1101 Responsibility for Losses -Every public officer should exercise the same vigilance 
in respect of public expenditure and public funds generally as a person of  ordinary prudence 
would exercise in respect of the expenditure and the custody of his own money. Means should be 
devised to ensure that every railway servant realises fully and clearly that he will be held 
personally responsible for any loss sustained by Government through fraud or negligence on his 
part and also for any loss arising from fraud or negligence on the part of any other railway 
servant to the extent it may be shown that he contributed to the loss by his own action or 
negligence. 
 
1102 Report of Losses -Any defalcation or loss of cash, stores or other property 
belonging to Government should be reported immediately it is discovered to the head of the 
division or department as the case may be, and in serious cases to the General Manager also, 
copies of the reports being sent simultaneously to the Financial Adviser and Chief Accounts 
Officer who will forward a copy to the Chief Auditor.  If any irregularity or loss is detected by, 
or is brought to the notice of the Accounts Officer in the first instance, it will be his duty to 
apprise immediately the administrative authority concerned of the facts of the case and ask for a 
proper investigation ; the Accounts Officer will send a copy of his communication on the subject 
to the Chief Auditor.  If, however, the irregularity or loss is discovered by, or is brought to the 
notice of the administrative authority in the first instance, that authority should immediately 
report the matter to the Accounts Officer, who will forward a copy of the report to the Chief 
Auditor.  Petty cases, that is cases involving losses not exceeding Rs. 500 each need not be 
reported to the Financial Adviser and Chief Accounts Officer nor by him to the Chief Auditor 
unless there are important features which require detailed investigation and consideration.  Every 
important case involving loss of cash, stores, or property, whether caused as a result of frauds 
perpetrated or negligence shown by the railway servants, or caused purely by accidents such as 
fire, etc., should be brought to the notice of the Railway Board by the General Manager through 
a preliminary report (to be followed by a detailed report see Para 1103) within six weeks from 
the date of detection of the loss and a copy of the report endorsed to the Chief Auditor 
simultaneously through the Financial Adviser and Chief Accounts Officer.  When the loss 
involved does not exceed Rs. 50,000 the case need not be reported to the Railway Board unless it 
represents unusual features or reveals serious defects in procedure. 
 
The preliminary report, which should be based on the facts and first-hand information 
available, should bring out- 
 
 (i)    the nature of the loss , 
       
  (ii)  whether the matter has been reported to Civil/GR Police/RPF and Departmental 
Enquiry Committee ;

3 
 
(iii)   amount involved, actual or approximate; 
 
             
 
(iv) 
steps taken to plug the loop holes, if any; and 
   
 (v)  
the name of the staff apparently r

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