This is how How touts monopolise railway tickets:
According to sources, the base is constituted of 'field officials' or agents who lookout for 'vulnerable' passengers. The travel agent who notes down your travel details forms the second tier. The third tier is of ticketing officials in railways who confirm these tickets into berths.
The layer above them are the GRP and the RPF who allow these touts a free run inside and outside station premises to carry on with their "job". The final and the most important level consists of railway officers and...
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office staff whose names are often dropped before the booking clerks to confirm wait-listed Tatkal tickets.
The "safest" way that a tout can confirm a ticket, says a railway officer, is to buy one from a counter when it goes "live" on the web a day before the journey. "Most of the touts block queues in the morning and push their own men before the counters. Many others manage to enter the offices of these clerks by bribing the booking clerk and RPF and GRP. While the clerk is paid for each ticket, the security agencies have a monthly setup," he said.
During peak season, touts buy tickets before hand in anticipation of a rush. Since the names in which these tickets are booked are fictitious, the agents use only a first alphabet and choose the surnames depending on where the train is headed to. For example a train ticket to Kolkata will be booked as R Chattarjee while one to Patna will be booked as R Jha. Since male passengers travel the most, you will hardly find the gender marked as female.
It is a different case when berths are wanted by more than one person on Tatkal quota. Only a VIP nod can confirm over two tickets. "Senior railway officers are either directly bribed or their office staff is taken into confidence to confirm such tickets," said an railway officer.
source of info:The Times of India