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This is an archive article published on April 7, 1999

Maharashtra to probe MSRTC tyre scam

MUMBAI, APRIL 6: A secretary to the state government would conduct an inquiry into the allegations of corruption in the purchase of over ...

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MUMBAI, APRIL 6: A secretary to the state government would conduct an inquiry into the allegations of corruption in the purchase of over 17,000 tyres worth crores for Maharashtra State Road Transport Corporation buses, State Transport minister Gajanan Kirtikar announced in the Legislature today.

Kirtikar was replying to a debate on heavy losses incurred by the MSRTC and different measures to be initiated by the state government to control the mounting losses. He announced various measures initiated by the government in the matter and also appealed the MSRTC workers, who have announced a strike from April 19, to cooperate with the government by calling off the strike.

During the debate, Janata Dal member Vyankappa Patki alleged that MSRTC officials had indulged in corrupt practices while purchasing over 17,000 tyres for the buses last year. “The contract to supply these tyres has been awarded to one Warewell Limited by ignoring the quality and at exorbitant prices. While bidders like JK Tyres, ApolloTyres and Ceat Tyres had quoted Rs 5,863, Rs 5,808 and Rs 6,351 per tyre, Warewell Ltd was given the Rs 70 crore contract at the rate of Rs 6,600 per tyre. This has cost an additional Rs 12 crore to the MSRTC,” Patki said.

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Kirtikar immediately said that an IAS officer, preferably a secretary to the state government, will conduct an inquiry into the matter and will soon submit a report to the state government. Stringent action would be initiated against those found guilty, he added.

Kirtikar further told the Legislature that the MSRTC’s accumulated losses over last several years amounted to a whopping Rs 531 crore. “Add to this the burden of Rs 74 crore on the MSRTC after the Union government and the state government recently increased prices of diesel. To find a way out, the car section of the MSRTC has been partially closed and its expenses of Rs 9 crore has been reduced to Rs 5 crore. Services on various long distance routes where the buses are not making profits would be closed down. The governmentis planning to provide grant to the MSRTC to make up the cost of various concessions like free travel to freedom fighters, senior citizens and schoolgirls. All these measures would take at least 6 months to show results,” Kirtikar said.

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