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Rs 2,200 Crore Employees’ PF-Gratuity Fund Diverted for Wages: Maharashtra Transport Minister
Maharashtra Transport Minister Pratap Sarnaik’s revelation regarding the diversion of employees’ provident fund (PF) and gratuity funds sparked a storm in the Maharashtra Legislative Council on Wednesday. Sarnaik revealed that the funds, which were meant for employees’ PF and gratuity, were being redirected to cover day-to-day operational expenses and wage hikes at the financially struggling Maharashtra State Road Transport Corporation (MSRTC).
The controversy began when BJP MLC Parinay Fukey raised a query about the non-deposit of PF and gratuity funds for the past 10 months. “PF and gratuity of employees have not been deposited for the last 10 months. What are the reasons? What has happened to the Rs 2,214 crore?” Fukey asked during Question Hour. He further warned, “If such misappropriation had occurred in the private sector, a cognisable offence would have been filed.”
In his response, Minister Sarnaik defended the decision, citing the MSRTC's precarious financial condition. “As of January 2025, an amount of Rs 2,214 crore is due as PF and gratuity. Daily earnings are used for fuel and other operational expenses, while government subsidies fund wage payments. Recently, after an employee strike, salary increments were also financed from these funds,” Sarnaik explained.
The minister’s remarks led to growing protests from opposition members, who expressed outrage over the situation. Amid the uproar, Sarnaik later retracted parts of his earlier statement, clarifying that “employees’ PF has been deposited and they have been paid interest too,” although dissent continued to reverberate through the chamber.
The government's written submission regarding the use of the PF-gratuity corpus further intensified the debate, with opposition members calling for action. NCP (SP) MLC Shashikant Shinde questioned whether a cognisable complaint would be filed if the funds were indeed misused. “Will a case be registered against the MSRTC MD if the funds have been misused?” he asked. Sena (UBT) MLC Anil Parab also recalled that similar issues had led to complaints being lodged against MSRTC officials in the past.
