KSRTC, BMTC withhold Rs 3,110 crore in PF dues
Bengaluru: Karnataka's four major state-run transport corporations — KSRTC, BMTC, NWKRTC, and KKRTC — have come under fire for failing to remit a staggering Rs 3,110 crore in provident fund (PF) contributions to the PF trust, despite regularly deducting the amount from employee salaries.
Over the past year, these corporations have reportedly not deposited the deducted PF amounts, leaving thousands of transport workers in a state of financial uncertainty. Employees who have applied to withdraw PF for emergencies say they are unable to access their own money. Transport union leader Jagadish has alleged misuse of the employees' PF funds by the corporations.
According to available data, KSRTC alone owes Rs 891 crore, BMTC Rs 958 crore, NWKRTC Rs 1,184 crore, and KKRTC Rs 76 crore — a total outstanding of Rs 3,110 crore. The delay in payment has also attracted interest penalties, with the PF trust now imposing up to 37 per cent in interest on the pending amount.
Angered by the situation, employees are demanding immediate payment from the managing directors of all four corporations. The mounting dues and accruing interest are causing concern not only among employees but also within the state's financial ecosystem.
In response to the crisis, the Karnataka government has approved a financial assistance package of Rs 2,000 crore to help address the PF shortfall.
Transport Department Secretary Dr N.V. Prasad said that the Corporations will borrow funds to clear the dues, and the government will reimburse them in a phased manner.
Prasad assured that the settlement to the PF trust will be done in stages, aiming to restore financial order and employee trust. The issue has sparked widespread unrest among transport workers, many of whom depend on their PF savings during emergencies, especially in the wake of recent inflation and cost-of-living increases.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NDTV
21 minutes ago
- NDTV
34 Dead In Floods, Landslides In Northeast, 19 Districts Hit In Assam
Guwahati: At least 34 people have died in floods and landslides in the northeastern states -- Assam, Manipur, Tripura, Sikkim, Arunachal Pradesh and others -- over the last three days. The Air Force and the Assam Rifles were called in for the flood rescue operations today. More than 1,200 tourists have been stranded in north was scheduled for Sunday, but fresh landslides came in the way. Eight tourists who went missing on May 29 after their vehicle plunged into the Teesta River at Munshithang, ae yet to be traced. In Meghalaya, 10 districts have been affected by flash floods and landslides. More than 10,000 people have been affected by flash floods in Tripura. In Assam, 764 villages across 19 districts have been hit in flash floods, affecting 3.6 lakh people. With two more deaths today, the toll of flood and landslides in Assam have gone up to 10. The Bramhaputra river is flowing above the danger mark in Dibrugarh, Neematighat amid other places. Five other rivers are flowing above the danger levels. More than 10,000 people have been moved to relief camps. Union Home Minister Amit Shah has assured of every possible help to the flood-hit areas. He has spoken to the Chief Ministers of Assam, Sikkim, and Arunachal Pradesh and the Governor of Manipur. "Spoke with the Chief Ministers of Assam, Sikkim, and Arunachal Pradesh and the Governor of Manipur in the wake of ongoing heavy rainfall in their states. Also assured them of every possible help to tackle any situation. The Modi government stands like a rock in support of the people of the Northeast," Mr Shah posted on X. Assam Minister Jayanta Mallabaruah said the state government has announced Rs 4 lakh compensation to the families of victims.
Time of India
31 minutes ago
- Time of India
Former MP Rizwan Zaheer found enjoying luxuries in Lalitpur jail
Lucknow: In a serious breach of prison regulations, jailed former MP Rizwan Zaheer was found to be living in VIP comfort during an inspection at Lalitpur District Jail on Sunday. The raid, conducted by District Legal Services Authority (DLSA) secretary Mayank Jaiswal, revealed luxury items and banned goods inside Zaheer's high-security barrack, including cash hidden under his pillow. Tired of too many ads? go ad free now The inspection team also recovered a comfortable mattress; branded food products like desi ghee and sweets; pickles; expensive toiletries including branded soap, shampoo, and cream; tiffin boxes; cooking oil; and even a battery-operated fan. The use of high-end crockery and the alleged preparation of VIP meals in a separate barrack raised serious concerns. Terming the incident a grave violation of prison norms, additional inspector general (Prisons) Dharmendra Singh said, "Given the seriousness of the matter, a fact-finding report was ordered and submitted by the DIG, Prisons, Kanpur Range. Action is being taken against the officials responsible." The report, sent to prison headquarters, outlines procedural lapses and names jail staff suspected of allowing illegal items to be smuggled into the barrack. Departmental action is underway against at least four prison personnel, including a warder and a deputy jailor. Jail superintendent Mukesh Kumar claimed that Zaheer, a heart patient, was advised by doctors to sleep on a soft mattress. He acknowledged that cash was found but claimed the amount was Rs 7,500. Zaheer, a former Samajwadi Party MP from Balrampur and a known history-sheeter from Harraiya, has been lodged in jail since July 2022 in connection with the murder conspiracy of former Tulshipur Nagar Panchayat chairman Firoz Ahmad alias Pappu. He faces 14 serious charges, including murder, attempt to murder, Arms Act violations, and Gangster Act cases.
Time of India
31 minutes ago
- Time of India
11 yrs since division, T & AP yet to agree on 9,000 cr liabilities
Hyderabad: Even 11 years after bifurcation, Telangana and Andhra Pradesh are locked in a dispute over financial liabilities associated with loans taken for externally aided projects. The erstwhile united Andhra Pradesh had secured nearly Rs 9,000 crore worth loans and external assistance, yet the division of the financial burden remains unresolved as both states struggle to reach a mutually agreeable solution. Andhra Pradesh had accrued Rs 8,929 crore under 15 distinct foreign aid projects. In response to the ongoing dispute, the Union home ministry had convened a meeting two months ago and the department of economic affairs clarified that loans tied to projects situated in a particular region should be the responsibility of that state. Furthermore, it was suggested that loans for projects benefiting both states should be apportioned according to the recommendations of the accountants general. However, this approach has drawn fierce objections from Telangana's leadership. Many officials believe that constructive dialogue could alleviate a number of these challenges. These loans are not all tied exclusively to projects within Andhra Pradesh. Many are linked to initiatives in Telangana as well. For instance, Andhra Pradesh contends that the division of loans for significant projects, such as the Krishnapatnam Super Critical power station located in Andhra Pradesh and the Hussainsagar development project in Telangana, should be determined based on territorial boundaries. In stark contrast, Telangana advocates for loan division based on population ratio, as stipulated in Section 54(1) of the Andhra Pradesh Reorganisation Act, 2014. The officials from Telangana argue that this legislation prohibits a territorial basis for division and that loans were allocated without adequately addressing Telangana's perspectives. Andhra Pradesh's position could impose an additional financial burden of approximately Rs 1,449.75 crore on Telangana, which is already grappling with substantial debts, raising alarm among state officials.
