₹90 Lakh Irregularity Detected in Railway Ceremonial Coin Procurement

Railway honour turns hollow: ‘Silver’ coins given to retired staff found to be copper

The420 Correspondent
5 Min Read

Bhopal | A serious irregularity has surfaced in the West Central Railway (WCR) involving the ceremonial silver coins presented to employees at the time of retirement. Coins distributed as a mark of honour during farewell ceremonies have been found to be fake, raising questions over procurement procedures and internal oversight within the Railways.

Laboratory tests have revealed that the coins, claimed to be made of pure silver, contain only a negligible amount of the precious metal, with copper forming the bulk of their composition. The revelation has dented the credibility of the system meant to honour long-serving employees and triggered a vigilance probe.

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The issue came to light when a few retired employees, facing financial needs, attempted to sell the coins in the local market. Jewellers who examined the coins expressed doubts about their purity and recommended a detailed test. The results were startling: the silver content was found to be just 0.23 per cent, far below the mandated 99.9 per cent purity prescribed for official commemorative coins.

Several retirees said they had accepted the coins as a symbol of recognition for decades of service. The disclosure that the coins were largely copper has left them feeling cheated and humiliated. For many, the episode represents not merely a financial loss but a blow to their dignity after years of service to the organisation.

Thousands of coins supplied, payments worth lakhs cleared

According to preliminary findings of the railway vigilance wing, an order for 3,640 coins was placed with an Indore-based private supplier for distribution through the Bhopal division’s general stores. Official records indicate that 3,631 coins were received into stock.

Each coin was priced at approximately ₹2,500, putting the total value of the supply at over ₹90 lakh. Payments were cleared as per standard procedures, with no red flags raised at the time regarding quality or composition.

Investigators believe the irregularity was not confined to a single event. Documents suggest that such coins were distributed regularly at retirement functions over a period of nearly three years. This has led to serious questions about why quality checks were either inadequate or entirely bypassed during repeated procurement cycles.

Supplier blacklisted, criminal action in motion

Following the disclosure, railway authorities moved swiftly to blacklist the supplier firm with immediate effect. The vigilance department has also submitted a formal complaint to the local police station, initiating the process for registration of a criminal case.

Officials said records related to procurement, inspection, storage, and payments are being scrutinised to establish accountability. The investigation will also examine whether the lapse was limited to supplier fraud or whether there was negligence or collusion at any internal level.

The Railways have stated that a detailed departmental inquiry is underway and that stringent action will be taken against all those found responsible. The focus, officials said, is on fixing responsibility and ensuring recovery of losses.

Procurement system under scanner

The incident has cast a harsh spotlight on the Railways’ procurement and supply-chain mechanisms. Experts point out that if quality control could fail so dramatically in the case of ceremonial items, similar vulnerabilities may exist in other categories of purchases as well.

There is growing demand for a comprehensive audit of past procurements of commemorative items supplied across divisions to rule out wider irregularities. Railway authorities have indicated that procurement norms and inspection protocols will be reviewed and tightened to prevent recurrence.

The administration has assured that corrective measures are being put in place and that future purchases will involve stricter quality verification, including third-party testing where required.

About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.

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