The debt-ridden Telangana State Road Transport Corporation (TSRTC) which is in further financial crisis due to the ongoing strike received a major jolt on Wednesday, as the Telangana High Court ordered the Corporation to pay Rs 200 crore to the RTC Workers Credit Cooperative Society. Besides, the state government also went on the offensive as the Telangana Transport Department served tax due notices of Rs 452.86 crore to be paid immediately by the Corporation.
On Wednesday, the Court was hearing a plea filed by RTC Workers Credit Cooperative Society Secretary B Mahesh and managing committee member BY Reddy. The complainants alleged that the TSRTC management had exhausted their funds of Rs 411 crore, and did not repay them.
The TSRTC workers have the RTC Workers Credit Cooperative Society which gives loans to the workers to meet their expenses for marriage, education etc.
The Times of India reported that the petitioner’s counsel Jayaprakash Rao told the court that the TSRTC management deducted small amounts from the workers salaries which was transferred to the Society’s account. However, the TSRTC management stopped transferring the deducted amount to the Society for the past few years.
Jayaprakash Rao said that the management should pay Rs 411 crore along with interest, which would amount to more than Rs 530 crore. After hearing the matter, Justice A Rajasekhar Reddy passed the order asking the TSRTC managing director and chief financial officer to deposit Rs 200 crore into the Society’s account within six weeks.
Meanwhile, the Telangana Transport Department Joint Commissioner and secretary, G Mamata Prasad, on Wednesday issued tax due notices claiming that the TSRTC did not clear Motor Vehicle tax dues for the years 2017-2018 and 2018- 2019, which amounts to Rs 452.86 crore, reported Deccan Chronicle. The TSRTC now has to pay Rs 652.86 crore towards both these dues, while their coffers are literally empty. It must be recalled that the TSRTC management had earlier told the court that they cannot pay salaries to the workers for the month of September, as they don’t have any money left.