The Railway Ministry has directed its catering service provider,
IRCTC to terminate all existing contracts of mobile catering (currently kept in abeyance) involving the scope of work of providing cooked food to passengers prepared from base kitchens as per the existing terms and conditions.
Further, the ministry directed IRCTC to treat this case as an exception arising out of the pandemic situation and not to treat the case as contractor's default and hence not impose any fine for not providing catering services and also return the Security Deposit (SD) and advance license fee in full after considering/adjusting valid dues. if any
The direction was given in compliance with the Madra High Court order dated February 19, 2021, after concerns raised over mobile catering services in a petition by members of the Indian Railways' Mobile Caterers Association (ICRMCA).
On Sensex, IRCTC closed at Rs1897.15 per piece down by 2%.