3 hours Ago
Maharashtra’s Transport Minister, Pratap Sarnaik, faced intense criticism on Wednesday after revealing that funds meant for employees’ provident fund (PF) and gratuity were being used to cover the Maharashtra State Road Transport Corporation’s (MSRTC) daily operational expenses.Sarnaik's statement triggered an uproar in the legislative council, leading to calls for action against MSRTC's managing director.The controversy unfolded during a discussion initiated by BJP MLC Parinay Fukey, who raised concerns over the mismanagement of PF and gratuity funds.
Fukey pointed out that the PF and gratuity payments of MSRTC employees had not been deposited for the past 10 months, and demanded an explanation regarding the use of Rs 2,214 crore from the fund.Fukey questioned, “What has happened to the Rs 2,214 crore? If this had been an industrialist or a private company, a cognizable offence would have been filed.” He emphasized that the state government, as the principal employer, was responsible for ensuring these funds were properly managed and deposited.
In response, Sarnaik admitted that due to the MSRTC’s fragile financial condition, the funds had been diverted to manage daily expenses and to cover increased wage bills. He explained that the corporation was using daily earnings for fuel and other operational costs, while subsidies meant for various government schemes were being directed toward paying employee salaries. Sarnaik also confirmed that the salary increases following an employee strike were being financed from the PF and gratuity corpus.
As of January 2025, an amount of Rs 2,214 crore is due as PF and gratuity. The daily earnings are being used for fuel and other day-to-day expenses. And the subsidy for various government schemes is being used to pay wages of employees, Sarnaik said.
This admission quickly sparked outrage, with NCP (SP) MLC Shashikant Shinde protesting vehemently. He questioned the misuse of the funds, stating, Even the President cannot touch this money. If it has been misused, will the government register a cognizable complaint? The opposition, led by BJP and Shiv Sena (UBT) members, demanded accountability, with some accusing the government of fraud.
“If you have cut from the employees' salary and not deposited it, it is a fraud. File a complaint and arrest the managing director and trustee immediately,” said Parinay Fukey, who continued to press the matter.As the protests in the legislative council grew louder, Sarnaik attempted to retract his earlier statement, asserting that the council members had been provided incorrect information.
He clarified, “Employees' PF has been deposited, and they have been paid interest too,” seeking to defuse the situation. However, the opposition continued to shout slogans, demanding further clarification and accountability from the government..
