REGULATORY · INDIA
Railways levies penalties, terminates caterer contract
Change
The Railway Ministry imposed a Rs 10 lakh penalty on IRCTC, fined the service provider Rs 50 lakh, and ordered termination of the caterer’s contract.
Why it matters
Action followed a passenger complaint about insect body parts found in a meal on the Patna–Tatanagar Vande Bharat Express. The ministry levied a Rs 10 lakh penalty on IRCTC and Rs 50 lakh on the service provider, and ordered termination of the provider’s contract. IRCTC is a Central Public Sector Enterprise and currently serves about 16.50 lakh meals per day across Indian Railways. The Railway Board listed major reforms for food quality, catering, and onboard services in January.
Implications
- · The terminated caterer loses contractual authority to supply onboard meals under the ended contract.
- · IRCTC records an immediate penalty charge of Rs 10 lakh; the service provider is liable for a Rs 50 lakh penalty.
Who is affected
- · Corporate boards
- · Compliance teams
Source
Topics
Law & Public Safety Regulatory Actions Compliance Agriculture Food & Beverages