Karnataka transport employees face ₹2,500-crore PF crisis

CH NEWS BENGALURU Around 1.10 lakh employees of Karnataka’s four state-run transport corporations are reportedly facing difficulties accessing their Provident Fund (PF) savings, with nearly ₹2,500 crore in dues allegedly remaining unpaid. The corporations are grappling with financial difficulties, diesel shortages and delays in salary payments. According to reports, 12% of employees’ salaries deducted towards PF contributions has not been deposited by the PF trust, raising concerns over the handling of workers’ savings. Employees, including drivers and conductors, have reportedly been unable to access their PF claims for the past two months. Workers seeking withdrawals for children’s school fees, medical expenses and marriage costs have faced difficulties since August. There are allegations that the corporations used funds for operational expenses, including diesel purchases and salary payments. However, the whereabouts of the reported ₹2,500 crore remains unclear. Employee representatives have demanded that the outstanding PF dues be cleared immediately. The four corporations, including KSRTC and BMTC, have already been directed to pay the employees’ PF dues.

Government releases ₹593.99 crore

Meanwhile, the State government has sanctioned ₹593.99 crore in financial assistance to the four transport corporations. The amount is intended to cover pending payments under the Shakti scheme, student bus passes and fuel dues owed to Hindustan Petroleum Corporation Limited (HPCL). The corporations reportedly have liabilities exceeding ₹5,000 crore, including loans and outstanding diesel bills. Fuel shortages had recently disrupted bus services at some KSRTC depots. Employees are awaiting the settlement of their PF claims as the corporations struggle to manage their financial obligations.