DTC lost crores for failing to get staff quarters vacated by ex-employees

The Comptroller and Auditor General (CAG) has found that the Delhi Transport Corporation (DTC) had suffered a loss of Rs 53.59 crore on account of unauthorised occupation of its 284 flats in two colonies in the city.

The DTC suffered losses on account of unauthorised occupation of staff quarters by its former employees.

The DTC had constructed 300 flats in two staff colonies at Hari Nagar and GT Karnal Road. Of these 300 flats, 284 were found illegally occupied by ex-employees and their families till March 2013. ‘Due to illegal occupation of staff quarters, the corporation has incurred an accumulated loss of Rs 53.59 crore till March 2013.’ 

The DTC workers had approached Supreme Court in 2006 which ruled ownership rights in favour of DTC, following which it issued notice to ex-employees for vacation of quarters and payment of damages through estate officer. Following SC’s order, the ex-employees were asked to vacate the quarters within two months. However, the report has revealed that DTC had still not been able to get possession of the flats as on 31 March, 2013. The audit also found that the corporation had also suffered a loss of Rs 34.86 lakh by not claiming refund of the TDS (tax deduction at source) in its income tax returns. 

The DTC is operating in a loss and thus, is not liable to pay any income tax under the IT Act, 1961. The CAG noticed that the corporation had been receiving concession fee from Green Delhi Privated Ltd on account of a contract awarded to the company in July 2007, for rights of advertisements on DTC’s Bus Queue Shelters. The company had deducted Rs 35.23 lakh as TDS from the payments made to the DTC from 25 March, 2008 to 16 April, 2008.