'Didn’t expect 25 goons': How financiers harass school bus owners

School bus owners have accused companies that financed the purchase of their vehicles of harassing them over payments.

Shanmugam P S, president, Karnataka United School and Light Motor Vehicle Drivers Association, said the issue has been simmering for nearly six months. About 60,000 vehicles have been part of the association.

“The government has allowed schools to function, but less than half of the (school) managements have resumed classes,” Shanmugam said.

“Most school bus owners come from middle class (backgrounds) and own one or two vehicles bought on loan. Since the end of the first wave, there’s pressure from financiers to return the loan or face seizure of vehicles. “All of this happens informally and it is difficult to produce evidence or a police complaint.”

But an incident last week has brought the issue to the fore.

Manoj Padikkal, who operates buses to Ravishankar Vidya Mandir in Varthur, said 30 buses he parked near the school were damaged by 25 people who sped away with five buses.

Padikkal said the financier offered to restructure the loan last year and he agreed to extend the repayment schedule by six months hoping that schools would commence by September.

“Resumption of the school was put off due to the second wave. Vehicles weren’t utilised and lack of revenue made it impossible to pay the EMIs for a loan of Rs 11 lakh.

“I was ready to face legal procedure for non-payment, but 25 goons brandishing weapons was the last thing we expected,” he said.

Radhakrishna Holla, president, Karnataka State Travel Operators Association, said though financiers seized thousands of vehicles, owners are not organised enough to jointly fight them.

“They are not willful defaulters, but are suffering due to slow revival of operations,” Holla said, adding only 60% of the travel sector has recovered.

“As a result, thousands of owners have either sold their vehicles at half price or lost them to financiers,” he said.

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