City buses may stop operations from Aug 9 over mounting dues

| TNN | Aug 8, 2018, 03:47 IST
at a standstillat a standstill
Nagpur: Three Red bus operators of Aapli Bus being run by BJP ruled Nagpur Municipal Corporation have once again threatened to stop city bus operation from August 9 over non-payment of dues. Even the cheques issued by the operators to fuel and spare parts suppliers have started bouncing from Tuesday.
In a letter to NMC’s municipal commissioner Virendra Singh, chief accounts officer and transport manager, the operators claimed their current outstanding amount has crossed Rs 14 crore each as the civic body has failed to clear dues since April this year. Despite this, they have been providing their best services to the city as per RFP and extended best possible credit by top-up loan, Cash Credit limit, overdraft loan, money market credit, unsecured loans and Non-Banking Finance Corporation credit bill loans, they claimed.

“Our limits have been exhausted and our post-dated cheques to financers have started bouncing, salary of drivers and maintenance staff for July 2018 is still pending,” they stated in the letter.

“There is total damage to our business due to overly delayed payments and hence, until we receive minimum Rs 6 crore each, we will not be in a position to run the city bus services smoothly with effect from August 9,” they stated. The operators also held NMC responsible for this as financial burden due to delayed payments and interest over interest by banks have totally destroyed their financial lifeline leading to operational failure.

Daily diesel consumption of three Red bus operators is worth about Rs 7.5 lakh each and payments at almost all fuel stations are pending and diesel supplies were stopped today. A few buses may go idle from Wednesday itself for the same. No financer was giving them credit as their cheques were being dishonoured, admitted transport committee chairman Bunty Kukde.

Kukde said the committee was trying hard to clear their dues so commuters did not suffer.

Get latest news & live updates on the go on your pc with News App. Download The Times of India news app for your device. Read more City news in English and other languages.
RELATED

From around the web

Be a part of America's BIGGEST South Asian Comedy Festival

DESI Comedy Fest

Explore endless entertainment for $15/mo.

SLING INTERNATIONAL

Save tax of up to Rs. 47,668* + Get a lifecover with ULIPs!

Coverfox.com

More from The Times of India

The life and times of M. Karunanidhi

Nora Fatehi or Mandana Karimi: Who is hotter?

Shweta Bachchan Nanda's father-in-law Rajan Nanda is no more

From the Web

More From The Times of India