CM writes to Centre on frozen accounts

Minister R Ashok says bus services will not be disrupted

Published: 20th March 2012 02:15 AM  |   Last Updated: 16th May 2012 06:38 PM   |  A+A-

BANGALORE: Karnataka State Road Transport Corporation (KSRTC) and Bangalore Metropolitan Transport Corporation (BMTC) are in talks with the Income Tax department, two days after their bank accounts were frozen for non-payment of tax for the year 2009-10. Also, their status, ‘charitable institutions’ was taken away.

On Monday, officials from both the Corporations seemed optimistic of resolving the issue. “Discussions are in the process. However, bus services will not be  affected,” said a senior BMTC official. Both the transport Corporations clear fuel dues at the end of every week, which runs upto `50 crore in a month. An official said the Corporations had an option to keep the daily collection in-house without depositing it in the bank and pay the oil companies to keep the services running.

“It is a very difficult situation for the Corporations. However, payments for this week have been made, which means services will not be affected,” the official said.

The IT department freezed the accounts  inspite of a pending appeal before them.  

Transport Minister R Ashok on Monday confirmed that the chief minister had written to the Central Government requesting them to intervene and de-freeze the accounts.  “The government must encourage profit making departments. It can noted that this is not happening with any other transport system in India. Both the Coporations are charitable institutions because they give concession passes to war veterans, students and other passengers of other categories,” Ashok said.

The minister assured that daily activities would not be affected as both the organisations were financially sound and had no pending bills. KSRTC and BMTC declared a profit of `57 crore and `55 crore respectively in the previous financial year.

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