BENGALURU: All four state bus corporations -- KSRTC, BMTC, KKRTC and NWKRTC -- have failed to remit employees’ Provident Fund (PF) contributions, which amount to a whopping Rs 2,792 crore.
The bus corporations, which are in a financial crisis, have failed to remit PF for the past several months and have now written to the state government to provide one-time relief and clear pending dues.
As per the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952, PF facility is provided to employees. According to it, bus corporations have to deduct 12 per cent of an employee’s basic salary and dearness allowance for the PF. Along with this, employers have to deposit an equivalent amount to the Employees’ Provident Fund Organisation (EPFO). If these contributions are not remitted on time to EPFO, an interest penalty of 12 per cent per annum has to be paid, as per Section 7Q of the Act.
In the letter dated November 12 to the secretary of the Transport department, KSRTC MD Anbu Kumar has pointed out the above factors, seeking funds from the state government. He has mentioned that bus corporations suffered huge losses during the Covid-19 pandemic, and fuel costs, staff expenditure and other factors have increased significantly year after year.
“From the daily revenue, it has become a challenge to cover fuel and wages of the employees,” he explained, and stated that it is not possible to remit due amounts to EPFO and pending dues are increasing every month along with interest penalties.
In the letter, Kumar also pointed out that as pending dues are huge, the Regional Provident Fund Commissioner, Bengaluru, has taken strong objection and warned that if it is not settled, it will invite action to revoke exemptions currently granted to the bus corporations.
This has initiated a blame game between the ruling Congress and opposition BJP. While Transport Minister Ramalinga Reddy has blamed the previous BJP government for leaving behind a liability of Rs 5,900 crore, which included pending PF dues and outstanding fuel bills, BJP argued that the free travel Shakti scheme has pushed bus corporations into a huge financial crisis.
