KOCHI: The Kerala high court on Tuesday directed the state government to conduct an audit on the constructions made by Kerala Transport Development Finance Corporation (KTDFC).
Justice Devan Ramachandran gave the directive after noticing that majority of the monthly aid from the government to KSRTC goes towards repaying the loans for the constructions but revenues from such assets are very low. The court pointed out that while Rs30-50 crores is being paid by the government to KSRTC monthly, Rs30 crores is being paid to a consortium of banks and financial institutions towards repayment for loans availed for the constructions by KTDFC. The court noted that the pleadings of the government or KSRTC do not reveal why these assets are not being put to full use or why profits are not being generated in the manner it should have been.
Petitioners’ counsels pointed out that many of the constructions by KTDFC were on build-operate-transfer (BOT) basis but many of them are substandard and incapable of attracting commercial interest.
In the order (WP-C No. 15353/22 and others), the court said, “This issue certainly must engage the mind of the Government because a substantial share of the liability of the KSRTC appear to have been created on account of such constructions. Therefore, it is now necessary that the Government conduct a proper audit of all the assets of the KSRTC, as also the constructions made by the KTDFC, and to verify where the problem is now heading.” The court also asked the government to inform about the money owed by it to KSRTC towards concessions provided for deserving passengers.
Responding to the court’s suggestion that the government should wipe off KSRTC’s liability to banks to enable it to generate a profit, the government said it is considering the issue and need a month’s time.
State government alleged that trade unions are still engaging in strikes and it is affecting KSRTC’s operations. Stating that the government, KSRTC management, and staff should work in tandem to overcome the crisis, the court said every bus that is capable of being put to operation should be deployed and the number of schedules should be increased as far as possible to raise operational income.
