HC issues notice to Sajjanar in TSRTC fund diversion case

The Telangana High Court issued notices to TSRTC’s vice chairman-cum-MD V.C. Sajjanar and chief manager (F&A) B.C. Vijayapushpa Kumari, seeking their reply on why contempt proceedings should not be initiated against them for flouting court orders dated April 26, pertaining to returning money to the TSRTC Employees Credit and Thrift Cooperative Society.

Setting a deadline of July 21, Justice P. Madhavi Devi directed the officials to provide a counter in person or through advocates, warning of initiating contempt action in case of non-compliance.

The action comes on a case filed by TSRTC employees with the High Court in November 2022, alleging that 639 crore of deposits were diverted from the cooperative society for administrative purposes and the same was not remitted back.

Due to non-remittance, employees alleged that they were unable to avail of the benefits, meant for purposes such as



children’s education, weddings, housing and health issues, despite them diligently contributing to the credit society.

The complainants sought a refund of 904.1 crores, including principal of 639 crores and interest of 200 crores, to which the court agreed and directed the same be deposited within two months.

However, in the interim, Sajjanar filed an interim application in the High Court, stating that the corporation was suffering a funds crunch and not in a position to comply with court orders.

Considering the same, the High Court, on April 26, directed TSRTC to pay 50 crores to society within 15 days. i.e. May 15, 100 crore by November 25 and the rest in further instalments.

However, the first instalment was not remitted, aggravating employees, who sought punishment for the TSRTC’s top brass for wilfully violating the court order.