MUMBAI: Maharashtra transport minister Pratap Sarnaik triggered an uproar in the legislative council on Wednesday by admitting that employees provident fund-gratuity was being used to manage day-to-day expenses and increases in the wage bill of the loss-ridden Maharashtra State Road Transport Corporation.
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?”
Fukey said that had it been an industrialist or a private company a cognisable offence would have been filed. “As principal employer it is the state govt’s responsibility to ensure the money is deposited,” he said.
Sarnaik replied that the financial condition of MSRTC was delicate and the govt had offered various fare concessions to different groups of people. “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 the various schemes from the govt is being used to pay wages of employees. Sometime back, there was a strike by employees and their salaries were raised. The increase in salary is being paid from the PF and gratuity funds,” he said.
To this, NCP (SP) MLC Shashikant Shinde protested saying, “Even the President cannot touch this money. If it has been misused, will the govt register a cognisable complaint?” he asked.
Sarnaik replied that in the recent budget, a generous provision has been made for the corporation. “And I want to assure the House that in future, the funds will not be used to pay wages,” said Sarnaik, adding employees would not lose interest on the money diverted.
Shiv Sena (UBT) MLC Anil Shinde said when he was transport minister it was BJP’s Gopichand Padalkar, advocate Sada Varte and Sadabhau Khot who lodged a complaint when the money was not deposited for a month. “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 Parab.
As the protests grew louder, Sarnaik retracted his earlier statements and said council members had been provided wrong information. “Employees’ PF has been deposited and they have been paid interest too,” he said. But Opposition members continued shouting slogans.