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Audit Reveals: L&T Metro Rail Overcharged Passengers and Faced Operational Hurdles

According to a report by the Comptroller and Auditor General of India (CAG), L&T Metro Rail Hyderabad Limited (L&TMRH) collected excess fares amounting to ₹213.77 crore from November 2017 to March 2020, surpassing fares outlined in the concession agreement. The audit also highlighted delays in completing Metro corridors and land acquisition, leading to cost escalation.

Notably, six stations on Corridor II remain incomplete, affecting project costs and operations. The CAG recommended the government to expedite the completion of Corridor II up to Falaknuma and enforce concession agreement provisions to optimize project potential. Additionally, Hyderabad Metro Rail (HMR) admitted low ridership, attributed partially to insufficient parking spaces, and advised the government to address unauthorized deviations in construction and review fare structure promptly.