Telangana HC orders unfreezing of PF accounts of RTC employees

Hyderabad: On Friday, the Telangana High Court ordered the release of PF (provident fund) accounts of the TGRTC (Telangana State Road Transport Corporation) employees. The court directed the managing director of TGRTC and the PF commissioner of Hyderabad to issue directives in line with the court order.

As much as Rs 900 crores, which was deducted from the employees’ salaries towards PF (from March 2014 to September 2019) is still pending, to be paid to the banks.

The HC judge adjudicated a writ petition filed by the managing director of the TGRTC corporation, seeking a direction to suspend the prohibitory orders issued by the PF Commissioner-II, directing the Union Bank of India to freeze the accounts of the TGRTC for not depositing the employee’s contribution towards the PF, though the TGRTC deducted such amount.

TGRTC diverted Rs 40 crores worth of PF contributions for daily functioning

A Single Bench comprising Justice CV Bhaskar Reddy directed the regional PF commissioner-II of the Regional Office in Hyderabad to release the PF accounts of State RTC employees.

The TGRTC had recently deducted Rs 40 crores towards PF contribution from the salaries of the employees but did not deposit it in their PF accounts, rather, it utilised the said amount for the day-to-day functioning of the TG RTC.

‘Bifurcation of RTC between AP and TG pending’

Sudershan Reddy, advocate general, while arguing for the RTC MD, informed the court that the bifurcation of the RTC between AP and Telangana has not yet been done as per the AP Reorganisation Act, 2014, and the amounts as stated by the PF Commissioner, have to be paid to the banks by both the AP and Telangana RTC and deliberations between both the states to settle this issue is still going on.

The court asked for counter affidavits and adjourned the writ petition to July 15.