The Kerala State Road Transport Corporation (KSRTC) has diverted around Rs.80 crore collected as insurance premium and loan repayments from the salary of employees during the past eight months to make ends meet.
The loss-making KSRTC is facing a financial crisis. It diverted the money after deducting the premium and the loan repayments from the monthly salary of the employees, reportedly to honour its commitments.
Official sources told The Hindu that the employees got wind of the diversion of the insurance premium to the Life Insurance Corporation of India and loan repayments to various public sector banks, private banks, and cooperative societies after they were served notices.
The loans were taken by the employees for purchasing vehicles and constructing houses.
The LIC has intimated the employees that policies will be cancelled owing to the default on insurance premium, the sources said.
“In the salary slip given to us, the deductions towards the LIC and the banks are shown every month.
“But, the KSRTC management has diverted the money deducted from the monthly salary for meeting its commitments.
“When will the corporation, which is groping in the dark for funds to clear the pension arrears of the retirees, repay the diverted money to the LIC and banks,” an employee at the KSRTC headquarters here said.
The diversion shows the mismanagement and lack of financial discipline in the KSRTC. A trade union leader of the KSRTC said the corporation had not been able to come up with an alternative revival plan and introduce the insurance cess for tickets despite announcements.
The revenue collection from the fleet is going down, and the reduction in the price of the diesel has not come to the rescue of the ailing corporation, it has been pointed out.
The recognised unions that are agitating in front of the Secretariat to press their various demands have taken up the diversion of the premium and the loan repayment instalments.
The corporation has to pay Rs.10 crore to the LIC, and steps have been taken to ensure that the six-month period is not crossed.
News: The Hindu
