CM: Will take action over MSRTC tender which could have caused loss of Rs 1,700 cr

Stating that work orders for the tender process to acquire 1,310 buses were issued through “collusion” with contractors, Fadnavis said that action will taken against those responsible.

The MSRTC had issued the tender last year when Deputy Chief Minister Eknath Shinde, who was the then chief minister, was in charge of the transport department. When Fadnavis had stayed the tender in February, it was considered as a blow to Shinde.

On Wednesday, Fadnavis was responding to a starred question raised by Congress’s Rajesh Rathod, regarding the tender which Fadnavis had stayed after coming to power.

Sena UBT MLA Anil Parab, who also raised the issue, questioned why did Shinde tell the House during the winter session that there has been no irregularities or issues in the tender process.

Raising contradictions in the government’s response in the House over the issue, Parab said, “The MSRTC has a certain process to be followed during the tendering process and issuing work order. The work order was issued last year and during the winter session, the DyCM had said that there was no issues in it… However, the chief minister cancelled this tender… How come there is two different answers coming from the government?”

Responding to Parab, Fadnavis said that the tender process was approved and work order was issued when the government was not fully formed and the cabinet expansion did not take place.

Fadnavis assured that a thorough investigation will be conducted into this matter and a report of it will be submitted within a month’s time.

“The work orders for the tender process to acquire 1,310 buses were issued when the government formation was underway (after the November 2024 elections), and neither the chief minister nor the deputy chief minister had approved it,” he said.

“This could have caused an estimated loss of around Rs 1,700 crore to the state exchequer. Following this revelation, the tender process was halted, and an inquiry was ordered under the additional secretary of the transport department,” Fadnavis said.

Transport Minister Pratap Sarnaik, who belongs to the Shinde Sena, congratulated Fadnavis for averting a loss.

Opp seeks action against MSRTC director, trustees

Opposition Maha Vikas Aghadi (MVA) demanded action against the board of trustees and director of MSRTC for allegedly using the provident fund (PF) and gratuity money of MSRTC employees.

Speaking in the state legislative council, Sena UBT’s Anil Parab, NCP  Shashikant Shinde, and Congress’s Bhai Jagtap alleged that Rs 2,100 crore, including Rs 1,100 crore for PF and Rs 1,000 crore for gratuity, of the 90,000 employees of the MSRTC, have not been deposited in their accounts.

“This money cannot be used by the board of trustees of any company. Even the President of India has no right to use PF money. Hence, immediately a case must be filed against the  board of trustees and the director of MSRTC,” Parab said.

While Sarnaik initially admitted that the money could not be provided due to the shortage of funds, he later retracted his statement saying the money has been deposited in the bank accounts of employees.

The opposition, however, said that the government is making contradictory statements and walked out of the House.

“The transport department has not received a single complaint regarding non-payment of PF and gratuity. In future, salary amount will not be spent on PF,” said Pratap Sarnaik.