The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet titled “Indian Railways- A State Within The State” was published on June 15, 1994, and was authored by Dilip Thakore. In the article, the author critically analyzes the issues plaguing Indian Railways. Thakore argues that as is the case with all public sector enterprises and undertakings; Indian Railways too has been captured by its unionised employees. These privileged employees of the nation’s largest commercial organisation do not provide the citizenry value for money and on the contrary they routinely abuse their own positions as employees and Indian Railways’ position as a monopoly organisation to illegally benefit themselves. Thakore describes Indian Railways as a state within the state where there is an unspoken social contract which permits Indian Railway employees to harass, inconvenience and rip off less privileged lay citizens who are dependent on the rail services. Thakore concludes by making a case for intelligent privatisation of the sector and recommends infusion of proven, business-literate managerial talent into the top echelons of Indian Railways.