Bengaluru: Karnataka’s four major state-run transport corporations — KSRTC, BMTC, NWKRTC, and KKRTC — have come under fire for failing to remit a staggering Rs 3,110 crore in provident fund (PF) contributions to the PF trust, despite regularly deducting the amount from employee salaries.

Over the past year, these corporations have reportedly not deposited the deducted PF amounts, leaving thousands of transport workers in a state of financial uncertainty. Employees who have applied to withdraw PF for emergencies say they are unable to access their own money. Transport union leader Jagadish has alleged misuse of the employees’ PF funds by the corporations.

According to available data, KSRTC alone owes Rs 891 crore, BMTC Rs 958 crore, NWKRTC Rs 1,184 crore, and KKRTC Rs 76 crore — a total outstanding of Rs 3,110 crore. The delay in payment has also attracted interest penalties, with the PF trust now imposing up to 37 per cent in interest on the pending amount.

Angered by the situation, employees are demanding immediate payment from the managing directors of all four corporations. The mounting dues and accruing interest are causing concern not only among employees but also within the state’s financial ecosystem.

In response to the crisis, the Karnataka government has approved a financial assistance package of Rs 2,000 crore to help address the PF shortfall.

Transport Department Secretary Dr N.V. Prasad said that the Corporations will borrow funds to clear the dues, and the government will reimburse them in a phased manner.

Prasad assured that the settlement to the PF trust will be done in stages, aiming to restore financial order and employee trust. The issue has sparked widespread unrest among transport workers, many of whom depend on their PF savings during emergencies, especially in the wake of recent inflation and cost-of-living increases.