Govt to sue Marcopolo over 'loss-making' buses

The government has decided to file criminal charges against Tata Motors and Marcopolo companies over their “loss-making” buses, Transport Minister Ramalinga Reddy said on Friday.

The move comes almost eight years after the purchase of 149 Marcopolo buses, which were later scrapped by the government.

Reddy told reporters the decision was taken during the last board meeting of the Bangalore Metropolitan Transport Corporation. The buses were purchased in 2008 and scrapped in 2014.

The department has sought a refund of Rs 30 crore. “They (the companies) maintain that they are not at fault. But action has to be taken,” added Reddy.

He said IAS officer S R Umashankar, who has been asked to inquire into the purchase of the buses, was yet to submit his report.

The minister said the tender process for the purchase of 1,000 new buses for the BMTC had been initiated. The buses were announced in the 2016-17 budget.
He said all transport corporations would be getting 4,000 new buses this year.
DH News Service