REGULATORY · MARKET STRUCTURE · INDIA
Indian Railways fines IRCTC, cancels vendor contract
Change
Indian Railways imposed ₹60 lakh in fines and directed termination of the onboard vendor's contract after worms were found in Amul curd served on a Vande Bharat Express.
Why it matters
Railway authorities fined IRCTC ₹10 lakh and penalised the onboard service provider ₹50 lakh, and directed termination of the vendor's contract. The complaint originated from a March 15 passenger report on Vande Bharat Express train 21896. Officials stated that monitoring mechanisms are being enforced to prevent recurrence. The binding measures apply to the vendor whose contract was cancelled and to IRCTC's onboard catering operations on the affected service.
Implications
- · Procurement gap for onboard catering on the affected Vande Bharat service due to vendor contract termination.
- · ₹50 lakh penalty charged to the onboard service provider and a ₹10 lakh fine levied on IRCTC.
- · Stronger vendor oversight and monitoring obligations enforced for IRCTC and onboard caterers.
- · Requirement to replace the cancelled supplier to restore catering services on the route.
Who is affected
- · Corporate boards
- · Compliance teams
Source
Topics
Law & Public Safety Compliance Business & Markets Supply Chain & Logistics Agriculture Food & Beverages