Bengaluru: Shantinagar bus station mortgaged to raise Rs 160 crore | Bengaluru News – Times of India

BENGALURU: BMTC has mortgaged Shantinagar Traffic and Transit Management Centre for a loan to pay off its debt.
Responding to an RTI application filed by Mandya resident Anand, BMTC said it was done to raise Rs 160 crore from Canara Bank between October 2019 and February 2021. The transport utility is paying Rs 1.4 crore a month to the bank as interest.
Shantinagar TTMC, built on 7-acre land, consists of a bus terminal, office spaces, commercial space and a parking lot. In 2010, the centre was constructed at a cost of around Rs 108 crore through JNNURM funds. It also houses several government departments.
BMTC has been struggling to pay salaries to its employees for nearly a year due to the pandemic as its ridership and revenue have drastically reduced.
An official said they raised the long-term loan to pay employer’s provident fund share. “Canara Bank offered the loan at an interest of 8.6% per annum compared to other banks which wanted over 12%. We need to pay the loan in 12 years.”
While BMTC has been deducting employer’s share of PF, it didn’t pay the amount to the Employees’ Provident Fund Organisation. The utility is yet to pay gratuity to employees who retired in the last few years. It has also defaulted payments to Life Insurance Corporation, which were collected from employees. On the other hand, the government is yet to reimburse around Rs 2,000 crore for various subsidised passes, said another official. tnn

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Sagar Biswas

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