A test audit has showed exporters misused the railway's dual policy for transportation of iron ore.

The Comptroller and Auditor General (CAG) has unearthed another big scam - this time in the railways.



A test audit has showed exporters misused the railway's dual policy for transportation of iron ore leading to a loss of around Rs 17,000 crore, said a newspaper report on Sunday.



The CBI is already probing the scam that began in May 2008.



The genesis of the scam came with the policy that allowed transportation of iron ore for domestic consumption at much lower costs compared to export. Naturally, the exporters misused the rule.



The CAG has told the railway ministry that in some of the cases, recoverable dues amounted to Rs 17,000 crore. The figure could go higher if details of all loading and unloading points were audited.



The test audit was done in South Eastern, South Western, and East Coast for transportation between 2008 and 2012.



The scam was made possible by collusion between railway staff and parties.



In many cases, by not submitting required documents, exporters were able to transport iron ore at domestic rates.