A Credit Cooperative Society (CCS) constituted for welfare of the employees of the AP State Road Transport Corporation (APSRTC) who contributed certain amount monthly from their salaries and availed themselves of loans to fulfil needs such as children’s education or marriage, has stopped serving the purpose.
The reason is that the cash-strapped RTC is said to have diverted the CCS funds for other expenses. Unable to avail loans from their contributions, the workers have been urging the management to repay the money.
‘Loan applications await sanction’
“Since March 30, close to 3,000 applications seeking loans have been awaiting sanction. We want the RTC management to immediately repay ₹260 crore which it has diverted to meet other expenses, along with interest amount,” said P. Damodar Rao, general secretary of the APSRTC Employees Union (EU).
Mr. Damodar Rao said the union was under pressure by the 52,000 employees to persuade the management to give them their money back. The union had submitted representations to the Transport Minister Perni Venkataramaiah and Principal Secretary, Transport and Roads and Buildings, M.T. Krishna Babu, urging them to solve the issue. The Minister had responded favourably, but the RTC management had not yet responded on the issue. “The RTC should release at least ₹ 100 crore immediately,” he said.
Mr. Rao allayed fears of depositors that the CCS was on the verge of bankruptcy. Referring to reports that dearth of funds had led to the bankruptcy of the Society, he said the CCS had set an example ever since its inception in 1952.
