Karnataka BJP alleges state owes KSRTC ₹6,500 crore in unpaid dues

Vijayendra pointed to a letter from the KSRTC Managing Director to the Finance Department, which details the massive arrears. The financial strain has forced the corporation to withhold wages for drivers, conductors, and support staff. Furthermore, fuel distribution has stalled, with KSRTC accumulating ₹187 crore in unpaid bills to oil companies like Hindustan Petroleum and Indian Oil Corporation, leading suppliers to restrict diesel deliveries to depots.

Deputy Chief Minister G Parameshwara dismissed the allegations, labeling the fuel shortage a temporary issue. He defended the state’s fiscal health, asserting that the government allocates ₹52,000 crore annually toward its schemes and maintains strict financial discipline. Parameshwara insisted that despite the current strain, the government is prepared to secure loans to ensure all operations continue without interruption, maintaining that the transport crisis does not signal a broader collapse of state finances.