How Go Rural India cheated TSRTC over advert display on buses

Hyderabad: The Enforcement Directorate (ED) has attached properties worth Rs 6.47 crore of the company Go Rural India for allegedly cheating the State Road Transport authorities of Rs 21.72 crore.

ED took up the investigation based on two FIRs registered by the Telangana police under the IPC, 1860, against Go Rural India Pvt Ltd (GRIPL) and its promoters/directors.

The complaint was filed by Secunderabad and Hyderabad regions of Telangana State Road Transport Corporation (TSRTC) that the company failed to make payments for dues of Rs 21.72 crore it owed to TSRTC from the display of advertisements on TSRTC buses.

What is the case about?

GO Rural India made a contract with the TSRTC to display advertisements on the buses.

As per the contract, the advertising contractor i.e. GO Rural India had to pay the amount mentioned in the contracts. However, upon execution of the contract, the promoters of Go Rural India carried out the business of displaying advertisements not only through their designated entity but also through other companies like GRIPL, Poster Town India Pvt. Ltd., Go Transit Media Pvt. Ltd. and Lime Lite Advertising Pvt. Ltd. which were managed and controlled by them. They, however, were not authorised to conduct the business of display of advertisements.

The ED investigation revealed that the accused collected substantial amounts of money from clients in their bank accounts in contravention of the terms and conditions of the contracts and diverted the funds earned through the display of advertisements.

Instead of paying the outstanding amounts owed to TSRTC, the accused utilised the funds earned from the display of advertisements on TSRTC buses for various purposes such as repayment of loans, purchase of jewellery, vehicles, immovable properties and other personal expenses. This diversion of funds led to a default in payment of dues to TSRTC and defrauded the corporation to the tune of Rs 21.72 crore.