Most corruption is by IR employees themselves.
Mis-use of free passes to mis-use of govt accomodation to mis-use of every possible resources.
At any medium or Big Rly Stn, u can see lot of Rly Employees doing nothing. They are biggest parasites for the organisation.
If properly optimised , present job-content of Rlys can be undertaken by 60% of present roll strength of railwayts...
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Plus, Rlys do all social responsibilities like grooming sportsperson without expecting anything in return except medal at sports meets..

Yes there is huge corruption in railways if corruption ends railways will surely see profits.
1. OBHS, Catering, etc have huge corruption involved. OBHS private companies gets tender and see their SOP, they have to use different chemicals like harpik and all to clean toilets also with floor cleaners, etc. How many of those use harpik, i have never seen using only water and clean toilet beds. Floor cleaners sometimes they use biut max times they clean only with water. See the situations of toilets of maximum trains in IR , worst condition. These agencies don't follow tender SOP and railway don't do monitoring. There lies corruption.
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with catering, huge corruption by private agencies and railway loosing money.
2. Free pass to railway employees needs to be stopped
3. Free travel by MP, Ministers needs to be stopped
4. Freight loading has huge huge corruption involved in IR, sometimes railway employees gets arrested but that is say 1%of total corruption. IR losses huge money in corruption in freight trains starting from loading wagons to unloading wagons there is corruption.
5. Theft in IR causes huge losses, proper survelience is not there, even RPF is involved at many placces in theft.
Even Railway employees r involved in theft of many items from trains like hand shower, soap dispensers, taps, etc. When new coach comes from PU or after POH a coach comes with new fittings u see within 1 to 2 days of service the new taps r replaced slowly with old taps. Railway employees r involved in this many places, they open those new taps and sell in outside market and replace them with old taps slowly slowly full train washroom will have all old taps after 6 months. Yes sometime passengers also steal them due to lackof proper surveillance.
Even theft of other railway property is also causes railway huge losses.
6. Proper ticket cheching lacks in IR and IR losses huge money due to improper ticket checking to catch ticketless travellers. Even bribes by TTE causes huge loss to railways.
7. Lack of proper maintainance of railway coaches by zones also causes huge loss to railways. Because of lack of proper maintainance, new coaches gets damaged soon and needs frequent replacement of parts to run those coaches. Lack of employees in different coaching depots is also a cause sometimes.
8. Huge corruption in construction activities in IR is there. Projects runs years after year and project cost increases there lies a corruption, also different items purchased have corruption involved.
More and more corruption involved in IR these r some. Corruption needs to be removed. Even wherever private parties r involved in some works in IR, they do corruption with railway employees involved.