In a stinging observation on the financial position of the Tamil Nadu State Transport Corporation (STC), the Madras High Court on Thursday said despite its observation in earlier orders, no steps appear to have been taken either for winding up the STC or to make it viable.
The First Bench comprising Chief Justice S.K.Kaul and Justice M.M.Sundresh made the observation on a PIL seeking a direction to the NHAI to stop collecting toll on the NH between Chennai and Bangalore till the completion of repair works at various places
During the hearing, the court was told that the State Transport Corporation was not paying the toll charges, causing financial constraints for the concessionaire.
This in turn reflected on the quality of maintenance of the NH. In the last order, the court had said that a large number of STC buses had been attached in road accident cases. Advocate-General A.L.Somayaji said nearly 700 buses were under attachment. “This itself almost shows the financial position of the corporation. Despite its observation in various orders, no steps appear to have been taken for either winding up the State Transport Corporation or to make it viable,” the Bench observed.
Following a court directive, the Advocate-General handed over five cheques, totalling nearly Rs. 1.77 crore, to the concessionaire, Essel Walajahpet-Poonamallee Toll Road Pvt.Ltd. However, the Bench observed that the sum was only a fraction of Rs. 7 crore claimed by the concessionaire.
