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The Hindu
The Hindu
National
The Hindu Bureau

State releases ₹15 crore for paying off MVD arrears

Giving a major relief to the public who had been waiting to get the printed driving license and registration certificates of vehicles from the Motor Vehicle Department (MVD), the Cabinet meeting held here on Wednesday decided to release ₹15 crore to clear the pending arrears the department owes to ITI Bengaluru and the Centre for Development of Imaging Technology (C-DIT).

The services have been hit since last November after the private firm engaged in the printing of the documents stopped the service in the wake of mounting arrears. The State owes ₹8.66 crore to ITI Bengaluru. The MVD is also liable to pay a service charge of ₹6.58 crore to the C-DIT since January 2023 for providing facility management services. The distribution of documents will be through the offices of the MVD as the department owes service charge arrears to the tune of around ₹6 crore to the postal department in connection with the despatching of documents by post.  As many as 10 lakhs documents were to be printed since November.  

Earlier, C-DIT - an autonomous body under the Department of Electronics and IT that offers facility management services for the MVD-  informed the MVD that all the facility management services rendered by the agency would be suspended from March 1 after the MVD failed to clear the accumulating arrears. The services were hit following the poor financial situation of the State government. The services were also disrupted despite the MVD collecting user fees from the public for delivering various services.

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