Rs 2,200 crore PF-gratuity fund spent on wages: Maha transport minister
Mar 13, 2025, 09:06 IST
His admission and the written submission by the govt about use of Rs 2,214 crore from the PF-gratuity corpus to meet increase in expenses at MSRTC set off an argument with an angry opposition, which demanded that a cognisable offence be registered against the managing director of MSRTC.
BJP MLC Parinay Fukey had raised the issue of PF and gratuity funds which led to the written reply on diversion of funds. During Question Hour in the council, Fukey said, “PF and gratuity of employees has not been deposited for the last 10 months. What are the reasons? What has happened to the 2214 crore?”
Maharashtra's Transport Minister, Pratap Sarnaik, recently acknowledged that the Maharashtra State Road Transport Corporation (MSRTC) utilized ₹2,214 crore from employee provident fund (PF) and gratuity reserves to cover daily operational expenses and salary increments.
This admission occurred during a legislative council session, where opposition members expressed strong disapproval and demanded legal action against MSRTC's managing director. BJP MLC Parinay Fukey highlighted that PF and gratuity contributions had not been deposited for the past ten months, emphasizing the state's responsibility to ensure these funds are properly allocated.
In response, Minister Sarnaik explained that MSRTC's precarious financial situation, exacerbated by fare concessions and a recent employee strike leading to salary hikes, necessitated the diversion of PF and gratuity funds. He assured that future misuse of these funds would be prevented and that employees would not lose interest on the diverted amounts.
The opposition, however, remained dissatisfied, insisting on immediate legal action against those responsible for the fund mismanagement. The situation underscores the financial challenges faced by MSRTC and raises concerns about the protection of employee benefits.