According to sources, the scam has been unearthed at the Workshop of Kharagpur which has the longest railway platform in the world.
Central Vigilance Commission (CVC), which first detected the scam, transferred the case to the CBI to expose the criminal conspiracy and corruption.
Major penalty has been clamped on four top officials who were allegedly related with the scam. A source from CVC informed, "The irregularities involve purchase of items related to repairing of railways coaches and locomotives."
"We have already recommended major penalty against four officials for their involvements in the wrongdoings besides transferring the case to CBI," added the CVC source.
The railways' officials have been asked to submit a detailed report on the case. The report soon will be tabled before the CVC.