Supreme Court to directly monitor distribution of KSRTC retirement benefits

New Delhi: The Supreme Court has announced it will oversee the distribution of retirement benefits, including gratuity, at the Kerala State Road Transport Corporation (KSRTC). The court's intervention specifically aims to ensure that seniority and other established criteria are strictly followed. During the proceedings, the court also raised pointed questions regarding why KSRTC continues to operate despite incurring massive losses.

KSRTC informed the court that it currently supports 41,355 pensioners. In addition to an existing liability of ₹16,000 crore, the corporation reported an annual loss of ₹1,500 crore. KSRTC argued that these financial constraints are the primary reason for the delays in disbursing retirement benefits. However, a bench comprising Justice Dipankar Datta and Justice Satish Chandra Sharma asserted that they would monitor whether the distribution standards are being upheld.

This relevant decision came while the court was hearing a petition regarding the retirement benefits of Pradeep D Nair, who retired as a Vehicle Inspector in 2024. KSRTC had approached the Supreme Court to challenge the High Court order directing the payment of his benefits.

The Supreme Court expressed disagreement with KSRTC's stance that financial losses justify the non-payment of dues. The bench questioned why the state-run corporation remains operational under such heavy losses, noting that private entities in the same sector often remain profitable. In response, advocates Abid Ali Beeran and Pranav Krishna, representing KSRTC, argued that the losses stem from the corporation’s commitment to social responsibility and public service.

While the Supreme Court agreed to consider the points raised by KSRTC, it first directed the corporation to pay ₹2,00,000 to Pradeep D Nair as part of his pension benefits. The court stated it would issue a formal notice on the petition following this payment.