Maharashtra Transport Minister's admission on diverting employees' PF-gratuity funds sparks legislative uproar

Sarnaik's statement triggered an uproar in the legislative council, leading to calls for action against MSRTC's managing director.

The controversy unfolded during a discussion initiated by BJP MLC Parinay Fukey, who raised concerns over the mismanagement of PF and gratuity funds.
Fukey pointed out that the PF and gratuity payments of MSRTC employees had not been deposited for the past 10 months, and demanded an explanation regarding the use of Rs 2,214 crore from the fund.

Fukey questioned, “What has happened to the Rs 2,214 crore? If this had been an industrialist or a private company, a cognizable offence would have been filed.” He emphasized that the state government, as the principal employer, was responsible for ensuring these funds were properly managed and deposited.

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In response, Sarnaik admitted that due to the MSRTC’s fragile financial condition, the funds had been diverted to manage daily expenses and to cover increased wage bills.
He explained that the corporation was using daily earnings for fuel and other operational costs, while subsidies meant for various government schemes were being directed toward paying employee salaries. Sarnaik also confirmed that the salary increases following an employee strike were being financed from the PF and gratuity corpus.

«As of January 2025, an amount of Rs 2,214 crore is due as PF and gratuity. The daily earnings are being used for fuel and other day-to-day expenses. And the subsidy for various government schemes is being used to pay wages of employees,» Sarnaik said.

This admission quickly sparked outrage, with NCP (SP) MLC Shashikant Shinde protesting vehemently. He questioned the misuse of the funds, stating, «Even the President cannot touch this