KSRTC Should Think of Closing down: HC
By Express News Service | Published: 05th August 2014 08:43 AM |
KOCHI: The Kerala High Court on Monday orally observed that the Kerala State Road Transport Corporation should consider closing itself down if it was not profitable. The court further asked the government to find out a remedy to solve the crisis being faced by the KSRTC.
Justice C K Abdul Rahim made the observation while considering a batch of petitions filed by retired employees challenging the delay in dispensing pension and dearness allowance to them.
The court also directed the Advocate-General to appear in the cases and submit whether there were any measures taken by the government to solve the problems including the failure to pay pensions.
The court observed that pensions could not be denied to the retired employees in the name of cutting down losses.
KSRTC submitted that, at present the corporation is facing an acute financial crisis. Owing to this the corporation is not able to dispense pension and other benefits to the employees. It had developed a revival package in the wake of the financial crisis. As per the package, the government would provide financial assistance to the corporation.
The court then pointed out that the government was extending the assistance from the tax payers money. It asked how long the government can give such financial support.
The corporation also pointed out that it has obtained permission to go ahead with the Life Insurance Corporation of India’s proposal for a permanent solution to pension payment to retired personnel.
The LIC has suggested a payment of Rs 500 crore this financial year, and subsequently `480 crore annually for 12 years to overcome the burgeoning liability.