Under section 71 of Indian Railways Act 1989, Railway Board has been empowered to charge freight over route, which may not be the shortest between alighting point and destination. The Rationalization order indicating the route through which the freight is to be charged is issued by traffic transportation branch, Railway Board.
Revised rule 125 of IRCA Goods Tariff Part l(Volume-l) vide Board's letter No. ECR 1125/94/3 dated 6/10/94 through which it has been that directed unless there is specific instruction in writing from the center or his authorized agent to the contrary, goods will be dispatched by the route optionally feasible and freight charges will be levied by the shortest route. However, charging of freight by shortest route is subject to any instructions issued under rationalities order issued from time to time.