Madurai: With the State Express Transport Corporation mortgaging its buses and depot-bus stands at various banks to the tune of 443.18 crore, the total financial liability stands at 2895.71 crore.
The SETC has 22 depots including one at Thiruvananthapuram plying 1,082 buses to meet the growing demand of passengers. However to meet the financial requirements to manage the day-to-day operations, the SETC has pledged its head office at Chennai, Coimbatore depot and bus stand at TamilNadu Transport Development Financial Corporation to a tune of Rs 391.84 crore; Salem depot-bus stand and Tuticorin and Tirupathi depot for Rs 19.69 crore, said K. Hakkim, an RTI activist from Madurai, who obtained this information from SETC recently.
The bus depot-bus stands and a restroom from Thanjavur, Tiruchy and Nagapattinam were mortgaged for Rs 31.65 crore at three banks, said the RTI information.
The SETC has pledged its 100 buses at TDFC and 100 more buses at Canara banks.
Similarly, three of seven Tamil Nadu Transport Corporation divisions - Coimbatore, Madurai and Metropolitan Transport Corporation (MTC)- have mortgaged its buses, land, depot and building to a tune of Rs 2,452.53 crore to manage their day-to-day operations, said Hakkim, founder of People's Awareness Movement, Madurai, referring to the RTI report.
Coimbatore division leads with Rs 1508.13 crore followed by Chennai with ' 580.63 crore and Madurai Rs 363.82 crore. All these divisions have mortgaged movable and immovable properties in the nationalised banks and in the case of Madurai, the process started in 1974 itself, he said.
For instance, the MTC, Chennai, pledged 490 buses for Rs 44.27 crore and Coimbatore division mortgaged 327 buses for Rs 41.43 crore. While Madurai division mortgaged 30 out of 39 its branches/depots for Rs 363.82 crore, MTC, Chennai, pledged T.Nagar depot-bus terminus for Rs 351.82 crore alone. And Pallavan house in Chennai for Rs 7.5 crore, he said.
For the queries whether TNSTC officials were appraising the government about the mortgage information, Coimbatore division, said that they have been informing the government every month, but officials in Madurai replied in negative. However, MTC, Chennai, didn't respond to it.
Meanwhile, as TNSTC, Salem and Tirunelveli division refused to share the information, Hakkim has decided to make the first appeal to managing directors of TNSTC. While Kumbakonam assured to send the information soon, Villupuram division didn't respond so far, he added.
State govt policy blamed for crisis
The transport union members and TNSTC officials blamed the state government policy for this crisis. While the prices of fuel, vehicle accessories have been witnessing an increase every year, the government doesn't take a decision to increase the passenger fares correspondingly, said Chandran, a senior trade union leader from Chennai.
“ As the government also fails to compensate this, the TNSTC are forced to mortgage its properties to meet the daily requirements, including fuel costs, maintenance and payment of salary to its employees every month,” he said and added that this is one of the reasons the retirement benefits were not paid to many employees.
Three transport divisions have mortgaged buses, lands
Three of seven Tamil Nadu Transport Corporation divisions - Coimbatore, Madurai and Metropolitan Transport Corporation (MTC) - have mortgaged its buses, land, depot and building to a tune of Rs 2,452.53 crore to manage their day-to-day operations, said Hakkim, founder of People's Awareness Movement, Madurai, referring to the RTI report.
