Bevco fails to deposit cash to treasury sans high-security vehicles
Thiruvanathapuram: The Kerala State Beverages Corporation (Bevco) has failed to deposit the daily collections at the state exchequer as the procedure to deposit the money could not be completed on time. As per the direction of the state government, Bevco had to deposit the daily collection directly to the treasury instead of banks. However, delay in arranging alternate mechanism to transport cash have proved a dampner.
The State Government had directed Bevco to deposit the daily collections directly to the treasury to tackle the currency crunch following demonetisation.
Bevco has an agreement with Federal Bank, Union Bank, Canara Bank, Punjab Bank and Sindh Bank for transporting cash to these banks. The security entrusted by the banks collect cash from the Bevco outlets. Since the government had asked the outlets to deposit money in the treasury, the outlets need to arrange an alternate mechanism to transport money safely.
The alternate arrangement will be put in place within two days to sort out the issue, informed Bevco officials.
The shortage of cash due to demonetisation had hit the market which directly affected the tax collection. Finance Minister Thomas Isaac had earlier disclosed that the state was struggling to manage the disbursement of salary and pension in April. As a remedial measure, the Minister had asked Bevco to deposit the collection directly to the treasury instead of banks.