Take action against Officials of four STCs

CHENNAI: The Madras High Court has directed the State Chief Secretary to take suitable action against the officials of four State transport corporations for investing a huge sum of Rs 1.17 crore in a dubious finance corporation in Madhya Pradesh in 1999. The investment was made in the Madhya Pradesh State Industrial Development Corporation, a government of Madhya Pradesh undertaking that was facing liquidation and hence could not pay the interest or repay the principal amount.Justice K Chandru gave the direction while dismissing a writ petition from Thanthai Periyar Transport Corporation Limited (TPTC) Employees’ Provident Fund Trust praying for a direction to the Madhya Pradesh Finance Corporation to refund its investment of Rs 20 lakh with interest. Three more transport corporations had invested money, totalling up to Rs 1.17 crore.The judge said the High Court did not have jurisdiction over the corporation in Madhya Pradesh. The Supreme Court had already held that the power relating to investment of contractual right could not be dealt within a writ petition. At best, the petitioner could approach the civil court in Madhya Pradesh for necessary relief. The judge wondered as to why the officials of the transport corporations had invested in a dubious firm, that too in faraway Madhya Pradesh. This, when financial institutions were available in Tamil Nadu itself. The money invested was collected from the employees towards provident fund. From the narration of events, it was clear that some of the officers of the transport corporations must have obtained pecuniary advantage in investing such a huge amount -- the hard-earned money of the workers -- with a finance institution that did not have enough wherewithal to repay. The State government should have ordered for an inquiry, including a vigilance one, to find out as to whether any pecuniary advantage was obtained by the officials.