Railway Minister Ashwini Vaishnaw has addressed corruption allegations surrounding the IRCTC 's train catering contracts during a recent Lok Sabha session. The minister's statements come in response to concerns raised by Members of Parliament regarding the awarding of catering contracts.

Allegations and Concerns

MPs raised several issues during the session, including:

• Over 80% of cluster-A contracts were allegedly awarded to one family.
• Contracts were given to contractors with pending criminal cases.

Minister's Defense

Ashwini Vaishnaw strongly defended the tendering process, describing it as transparent. He provided the following details:

• 24 bidders participated in the tender process.
• 20 entities received contracts through a highest bidder selection method.
• The minister denied that any single bidder received 80% of Cluster A contracts.
• He confirmed that no contracts were awarded in violation of tender conditions.

Monitoring and Compliance Measures

The Railway Minister highlighted IRCTC's efforts to maintain integrity in its operations:

• Robust monitoring systems have been implemented.
• Compliance measures are in place to prevent unethical practices.
• In the 2024-25 financial year, Rs 13.20 crore in penalties were imposed based on complaints received by IRCTC.

Scale of IRCTC's Catering Operations

To put the importance of these contracts into perspective:

• The railway network serves an average of 16.50 lakh meals daily.
• A new cluster-based contracting system has been introduced, aimed at improving food quality and hygiene standards.

Upcoming IRCTC Annual General Meeting

While not directly related to the corruption allegations, it's worth noting that IRCTC has scheduled its 26th Annual General Meeting:

• Date: Saturday, August 30, 2025
• Time: 12:30 PM (IST)
• Mode: Video Conferencing (VC) / Other Audio-Visual Means (OAVM)

The company has also announced a record date of Friday, August 22, 2025, for determining member eligibility for the final dividend for the financial year 2024-25, subject to approval at the AGM.

As the controversy unfolds, stakeholders will be closely watching for any further developments in IRCTC's catering contract processes and the impact on its services to the millions of passengers it serves daily.

IRCTC has announced a final dividend of ₹1.00 per equity share for the financial year 2024-25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The company has set August 22, 2025, as the record date for determining shareholder eligibility for the dividend payout.

Dividend Details and Payment Timeline

The Board of Directors of IRCTC has recommended a final dividend of ₹1.00 per equity share, with a face value of ₹2.00 each. This dividend is subject to approval at the company's 26th AGM, scheduled for Saturday, August 30, 2025. If approved, the dividend will be paid within 30 days of the AGM's conclusion.

Tax Deduction at Source (TDS) Guidelines

IRCTC has outlined comprehensive TDS requirements under the Income Tax Act provisions, with varying rates for different shareholder categories:

For Resident Shareholders:

• Standard TDS rate: 10% under Section 194 of the Act
• No TDS if aggregate dividend does not exceed ₹10,000 for individual shareholders
• 20% TDS if valid PAN is not available
• Exemptions available for certain categories with proper documentation

For Non-Resident Shareholders:

• TDS rate: 20% (plus applicable surcharge and cess) under Section 196D for FPIs and FIIs
• 20% (plus applicable surcharge and cess) under Section 195 for other non-resident shareholders
• Option to avail benefits under Double Tax Avoidance Treaty (DTAA) with proper documentation

Important Dates

E-voting Details

Shareholder Action Required

Shareholders are advised to:

1. Ensure their bank account details are updated in their respective demat accounts before the record date for timely credit of dividends.
2. Submit the required documents before the book closure period to claim exemptions or reduced TDS rates.

IRCTC has emphasized that no communication on tax determination or deduction will be entertained after August 22, 2025. Shareholders can upload scanned copies of relevant documents at https://einward.alankit.com/ against their folios.

The company will send the AGM Notice and Annual Report 2024-25 electronically to shareholders with registered email addresses. Those who haven't registered their email addresses will receive a letter with a web link to access the Annual Report.

This dividend announcement reflects IRCTC's commitment to delivering value to its investors while ensuring compliance with tax regulations.