'Will have to wind up operation': KSRTC in SC against bulk purchase rates of oil companies

B Balagopal / Mathrubhumi News

Representational Image: Mathrubhumi

New Delhi: KSRTC has approached the Supreme Court against the HC division bench’s decision to scrap the order of its single bench, which allowed KSRTC to procure diesel at retail price.

KSRTC pointed out that this decision could severely affect the company and eventually lead to them winding up the service.

In a petition filed in the apex court, KSRTC requested to stay the order of the High Court permitting oil companies from charging surcharge for bulk purchases.

It was also stated in the petition that the diesel was sold to private buses for a retail price. However, KSRTC is forced to pay around Rs 20 per litre for the same. As a result, KSRTC is incurring a loss of Rs 20 lakh a day. If this situation remains, KSRTC has to wind up its operations, it argued.

KSRTC also pointed out that there was a direct violation of article 14 of the constitution.

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