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The Hindu
15-05-2025
- Business
- The Hindu
Excess fare: warrants issued against MD of TNSTC, Coimbatore, and RTO, Coimbatore North
The District Consumer Disputes Redressal Commission, Coimbatore, has issued warrants against the Managing Director, Tamil Nadu State Transport Corporation, Coimbatore, and the Regional Transport officer, Coimbatore North, for failure to comply with an order passed on February 15, 2018, in a case of collection of excess fare lodged by Coimbatore Consumer Cause. An execution petition filed by K. Kathirmathiyon, secretary, Coimbatore Consumer Cause, during November 2023, cited the dismissal of an appeal made against the order by the State Consumer Commission and also a review petition in 2023. During 2018, three years after he had filed a case before the District Consumer Disputes Redressal Forum, Coimbatore, the complainant was refunded the excess fare of ₹6 charged from him for to and fro travel between Vadavalli and Railway Station, along with ₹6,500 towards legal expenses. The petitioner had called for deposit of the excess fare collected during the three-year period in the Chief Minister Relief Fund. The TNSTC, Coimbatore, and the Regional Transport Officer, Coimbatore North, had paid the costs and the TNSTC, Coimbatore, had also deposited the fine of ₹ 10,000 along with interest at 9% for three years amounting to ₹ 7,532 to the Chief Minister's Public Relief Fund. A copy of the order was sent to the Chief Secretary and to the Transport Commissioner of Tamilnadu Government to stop such excess collection. However, the TNSTC had claimed that the details of collection from 2015 to 2018 had been destroyed, and, hence, could not file the statement of excess collection. The Hon'ble Commission had, in its verdict cited the Government Rule mandating all the State Transport Corporations to preserve money value documents at least for a minimum period of 8 years as stipulated in the Companies Act 1956. The TNSTC, Coimbatore, had violated the Rule and the order of this Commission, Mr. Kathirmathiyon had contended in his executive petition. The bailable warrants were issued under Section 72 of Consumer Protection Act 2019.
Hindustan Times
26-04-2025
- Business
- Hindustan Times
Is PICUP's merger with Invest UP on cards?
The Uttar Pradesh government is mulling over a proposal to merge PICUP (Pradeshiya Industrial & Investment Corporation) with Invest UP to provide a one -point contact for investors. The move is part of a major overhaul of Invest UP in the wake of corruption allegations against its former chief executive officer. PICUP was established in 1972 as a state government company under the Companies Act 1956 to provide long-term loans to medium and large industries for industrialisation of the state. Now, the need is being felt to merge it with Invest UP, which was set up around five years ago, with the sole objective to propel Uttar Pradesh as the most favoured destination for investors at a time when efforts are on to turn the state economy into a trillion dollar one by 2029. Though the recommendation for the merger has been made in the new draft policy to revamp Invest UP, there are many challenges to overcome before this structural integration can be implemented. The rationale behind this merger is that the government wants to come up with a unified agency for policy disbursement and its promotion, besides reducing the administrative burden and cost, according to senior officials in the state government who are reviewing the new draft policy. 'In the new draft policy of Invest UP, its merger with PICUP has been proposed. We are studying the proposal. There are many challenges to overcome before executing this proposal,' said Uttar Pradesh minister for industrial development Nand Gopal Gupta 'Nandi'. 'We want to make investment in the state absolutely hassle free for investors. For this, the government wants to come up with one -point contact for investors and entrepreneurs where all their issues are addressed,' the minister added. The merger will help monetisation of idle assets to support new investments, according to a senior official of the state government but there are challenges on the road ahead. 'PICUP is a corporation whereas Invest UP is a society,' an official said. PICUP has provided loans and therefore it has accounts receivable (AR), which represents the outstanding invoices that the company expects to collect, like loan, from its customers. 'Apart from this, PICUP has got properties mortgaged to it and has assets while the Invest UP does not have any assets,' says the draft policy. To execute this merger, the draft policy has also recommended hiring of a reputed consultancy firm for which the government will invite bids. This external agency will have important tasks to execute, including debt resolution. It will involve financial modelling, loan recovery and asset monetisation. As for the legal aspect, the external agency will have to streamline amendments and regulatory procedures. Among other tasks, the consultancy firm will have to ensure integration of financial and non-financial functions. Audit of PICUP's liabilities to classify and resolve debt will also be a major task, according to a senior official. The draft policy has listed key tasks for the state government before merger of PICUP and Invest UP could be executed. LEGAL AND INSTITUTIONAL ALIGNMENT Cabinet and Legislative approval: PICUP is a corporation Structural Integration: Managing financial parameters Employee Transition Plan: Redefining Organisational structure DEBT MANAGEMENT AND LIABILITY HANDLING Financial due diligence: Classifying assets and debts Debt restructuring: Managing account receivables Negotiation with creditors: Asset monetisation RECOVERY OF PICUP LOANS Loan recovery task force: Dedicated legal and financial team OTS Scheme: Option of one time settlement of dues Asset -backed recover: Sale, lease or restructuring of mortgage HISTORY OF PICUP Established in 1972, PICUP has disbursed term loan of ₹1,420 crore to a total of 1100 units. PICUP has recovered ₹1,229 crore from 871 units, that is, 87% recovery of the loan distributed by the corporation to the aided units since the year of its inception has been completed.
