UPSRTC Denies UP Congress's Claim of Hiring Buses Worth Rs 2.68 Crore, Citing Lack of Witnesses

The UP Road Transport Corporation claims 2.68 crore from the UP Congress for hiring vehicles for political rallies from 1981-1989. However, due to the lack of witnesses, the Supreme Court considers appointing an arbitrator to resolve the dispute. The UP Congress challenges the claim, arguing that the amount is disputed. The court orders the UP Congress to deposit 1 crore as arrears and asks the UPSRTC to seek instructions on appointing an arbitrator. The high court had ruled that the UPCC was liable to pay the amount as it had used public property for political purposes, but the UPCC claims the recovery is politically motivated.

The UP road transport corporation on Monday told the Supreme Court that no witnesses were left in service to testify its claim of Rs 2.68 crore from the Congress' state unit for hiring its vehicles during 1981-89 for ferrying supporters to political rallies.

A bench of justices Surya Kant and K V Viswanathan was told by senior advocate Garima Prashad, appearing for the Uttar Pradesh State Road Transport Corporation (UPSRTC), ''It is a very old matter and we have no witnesses left in services to testify the claim.'' The bench said it was thinking of appointing an arbitrator in the matter as the amount of Rs 2.68 crore is disputed by the UP Congress Committee (UPCC).

''There will be some documents, otherwise how will the adjudication take place. They may be liable to pay some more amount or they may be liable to pay something less. You seek instructions and let us know,'' the bench told the senior advocate.

Prashad urged the court to refer the matter for mediation.

Senior advocate Salman Khurshid, appearing for the UP Congress, which has challenged the order of the Allahabad High Court, said the state government was issued notice on January 19 but no response has been filed.

While directing for extension of stay order on the recovery proceedings against the UP Congress, the bench posted the matter for further hearing after four weeks and asked Prashad to take instructions on the appointment of arbitrator.

On January 19, the top court had directed the UP Congress to deposit Rs 1 crore as arrear towards hiring buses and taxis from the UPSRTC between 1981 and 1989, when the party was in power in the state, for ferrying its supporters for political rallies and visits of then prime ministers Indira Gandhi and Rajiv Gandhi.

It had issued notice to the UP government and the UPSRTC on a plea of UPCC and directed the party to deposit Rs 1 crore within four weeks.

The UPCC has assailed the findings of the high court and said the total amount of Rs 2.68 crore is disputed.

It had said to establish the bona fide, it will direct the UPCC to deposit a certain amount of the total outstanding and proceeded to order for deposit of Rs 1 crore.

The UPCC had challenged the October 5, 2023 order of Lucknow bench of Allahabad High Court passed in a writ petition filed in 1998 challenging the recovery notice issued by tehsildar, Sadar, Lucknow.

The proceedings were initiated at the instance of the UPSRTC which claimed that an amount of Rs 2,68,29,879.78 is due on the UPCC and the corporation is entitled to recover.

While referring to various communications and bills, the high court took note of a letter dated April 2, 1981 of the UPSRTC which showed that a bill of over Rs 6.21 lakh was raised for 'kisan' rally organised by the UPCC on February 16, 1981.

Similarly, it noted another communication dated December 16, 1984 which referred to a bill of Rs 8.69 lakh, an amount due for providing vehicles for ferrying people to pay homage on November 19, 1984 to the ashes of late prime minister Indira Gandhi.

''In the present case, the political party in power has exercised its dominant position and utilised public property for its political purposes. The bills were raised to the petitioner political party but it ignored to pay the same and, while the earlier dues were pending, again being in power it availed facilities from the respondent UPSRTC without paying its dues,'' the high court had said.

It had said the UPCC cannot be granted liberty to escape its liability to pay its bills merely by stating that after change of government, the amount is wrongly being recovered due to political vendetta or that the amount cannot be recovered as arrears of land revenue by taking a technical ground.

''There is no doubt that the question of recovery of public money is involved in the present case, which is used for political purposes by the petitioner, therefore, the petitioner is bound to pay the said amount. The amount is pending for around 25-30 years and is not cleared by the petitioner as yet,'' it had said.

The UPCC had said the amount was being recovered as political vendetta and with a view to bringing the petitioner under political pressure.

In 2003, the Congress denied before the high court to have ever hired bus, taxi or any vehicle from the UPSRTC as claimed and said whenever it has applied for hiring any vehicle from the opposite parties, it has been after following due process of requisitioning and payments have been made according to the rules.

The corporation as well as the Uttar Pradesh government in its affidavit before the high court had claimed that between 1981 and 1989, vehicles in the nature of buses, taxi and others were provided to the petitioner party by the UPSRTC, on directions of then chief minister and minister concerned, who all belonged to the Congress, for which bills were regularly raised and were liable to be paid by the petitioner.

Former prime minister V P Singh, was the Congress chief minister of Uttar Pradesh from June 9, 1980 till July 19, 1982. Late Congress leader N D Tiwari was the chief minister of the state, twice between 1984 and 1989.

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