TN Government directed to pay Rs 204 crore dues to retired transport workers

The Madras High Court on Wednesday directed the Tamil Nadu Government to pay up the pending deficit of Rs 204 crore due to over 7,000 retired employees of State Transport Corporations by January 11.
Representative Image
Representative Image


A division bench of Justice S Manikumar and M Govindaraj said, “Considering the grievances of the retired employees who are paid the legitimate dues belatedly and beyond the period fixed by the court, we direct the government to pay the deficit Rs 204 crore by January 11, at any cost and ensure disbursement by January 12.” 
The court pulled up the Government for being lackadaisical in settling the dues after it found that as on June 22 the State Government owed Rs 641.91 crore to over 7,000 retired employees towards statutory dues like provident fund, gratuity and other superannuation benefits.
Also, it owed Rs 5,074.75 crore to its existing employees and around Rs 10,576.29 crore  towards loans and other dues.
Following this, the State agreed to settle Rs 1,136 crore due to the retired employees by October 7 by paying it in three instalments from November. Out of the sanctioned Rs 379 crore for the second instalment due on December 15, it told the court on December 22 that steps were under way to disburse about Rs 175 crore at the earliest.
When the plea was taken up on Wednesday, the government submitted that Rs 175 crore has been paid, prompting the bench to direct them to pay the remaining Rs 204 crore before Pongal.
Earlier, advocate-general Vijay Narayan submitted, “The state is in stressful financial situation. It has taken over Rs 10,000 crore commitments over and above the budget estimates for 2017-18.”

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