An RTI reply has revealed that money from a passenger cess created to pay compensation for accidents involving govt buses was diverted towards fuel and operating expenses. The diversion has prolonged an already difficult wait for accident survivors and bereaved families seeking compensations granted by courts.
To reduce payment delays, the state in 2018 introduced a ₹1-₹10 cess on every passenger ticket to create a dedicated accident compensation pool. The transport department’s 2026-27 policy note says state transport undertakings have collected ₹4,296 crore through cess since its introduction. On Aug 4, 14 TNSTC Villupuram buses were seized over non-payment of compensation totalling ₹63 lakh in two accident cases. The corporation has reported collecting more than ₹655 crore through the passenger cess, while stating that about ₹47 crore was paid towards accident compensation.
Madurai: An RTI reply has revealed that money from a passenger cess created to pay compensation for accidents involving govt buses was diverted towards fuel and operating expenses.
Despite these payments, families continue approaching courts to attach buses when awards remain unpaid, Anbalagan said. “Seizures have become messy, with legal teams chasing buses on highways and asking passengers to get down midway because officials do not cooperate with court-ordered attachments,” he said, citing a July 29 incident when a new TNSTC Madurai bus heading towards Tirunelveli was intercepted and attached on the Thoothukudi national highway. The diversion has prolonged an already difficult wait for accident survivors and bereaved families seeking compensations granted by courts. State transport corporations have long struggled with such liabilities. Unlike private vehicles, govt buses do not carry insurance to meet compensation awarded in motor accident cases. The govt later permitted surplus money from the fund to be used for toll payments. However, RTI replies obtained by transport activist K Anbalagan show that some corporations used the money for purposes beyond accident settlements and toll fees.