Karnataka’s state-owned road transport corporations (RTCs) are facing a severe financial crisis, with a total of Rs 2,792.61 crore in unpaid provident fund (PF) dues. This includes both the principal amount and interest on delayed payments. The NWKRTC is the most severely affected, having failed to pay PF contributions for three consecutive years.
The RTCs attribute their financial woes to the COVID-19 pandemic, rising fuel prices, and increased employee wages. These factors have forced them to divert funds meant for PF contributions to cover other operational expenses. The Regional Commissioner of the Provident Fund Office has warned of strict action, including revoking the PF exemption granted to transport corporations, if payments are not made.
The RTCs have appealed to the state government for financial assistance to address the PF crisis. They argue that government support is crucial to ensure the financial security of their employees and maintain the stability of the state’s road transport sector.