Committee rules out possibility of MSRTC, state govt merger

Keeping in mind the poor financial health of the transport body, the committee has also directed the state government to shoulder the financial burden of the employees

Mumbai Stating that the merger of the Maharashtra State Road Transport Corporation (MSRTC) is not possible with the state government for legal, administrative and financial reasons, a three-member committee appointed by the Bombay High Court (HC) has turned down the demand.

The committee told the HC that considering provisions in the Road Transport Corporation Act 1950, existing rules, and for administrative and practical reasons, the demand of the MSRTC and state govt merger cannot be accepted (HT File)

Keeping in mind the poor financial health of the transport body, the committee has also directed the state government to shoulder the financial burden of the employees.

The committee said that considering provisions in the Road Transport Corporation Act 1950, existing rules, and for administrative and practical reasons, the demand of the merger cannot be accepted.

“Similarly, the demand of making the staff members of the MSRTC government employees cannot be accepted. Also, the demand of handing over the operation to the transport department of the state government cannot be accepted for administrative and practical reasons,” the report has stated.

The report has cited the provisions in Sections 38 and 39 of the Road Transport Corporation Act 1950, that talk about superseding and liquidation of the corporation. “There is no such provision in the Act for the merger with the state government. Besides, the committee also checked the demand on administrative and financial fronts. The MSRTC administration apprised the committee that the Corporation has been covered under the status of ‘industry’ and the employees have been protected under various labour laws. The merger will cease the protection given to the employees under these laws. It will bring flexibility to the MSRTC in passenger and freight transportation, bringing limitations in the decision-making related to the services. It will lead to the losses to the Corporation in the absence of quick decision making,” the report has stated.

Transport minister Anil Parab said, “Though 28,000 employees have joined work, there are few hundreds who are still on strike. We appeal to them to call off the strike and resume work. There will be no action taken against them.”

Meanwhile, the state government will have to make an annual allocation of ₹4,000 crore for the salary of the MSRTC employees for the next four years.

They also recommended the government to financially support the corporation to ensure the timely release of the monthly salary of the employees. “Since the MSRTC is currently in poor financial condition, the state government should make budgetary allocation for the salary of the employees for the next four years,” the report has stated.

After thousands of MSRTC employees went on strike from October 27 for various reasons, the state government announced to increase dearness allowance to 28% from 12%, Diwali bonus to ₹5,000 from ₹2500 and a hike of annual salary rate to 3% from existing 2%.