Kerala private bus operators move Competition Commission over Priyadarshini scheme losses
After discussions with the state government failed to yield the desired results, the operators have now approached the competition commission.
After discussions with the state government failed to yield the desired results, the operators have now approached the competition commission.
After discussions with the state government failed to yield the desired results, the operators have now approached the competition commission.
With private bus operators across Kerala continuing to suffer losses on account of the UDF government's Priyadarshini free travel scheme for women, a complaint has been filed with the Competition Commission of India (CCI) seeking redressal.
The scheme, being implemented from June 16, granted women and transgender passengers free travel on select ordinary services operated by the KSRTC. The move was widely opposed by private bus operators, who argued that it would result in massive losses as passengers shifted from private buses to KSRTC services, which had become a free alternative.
After discussions with the state government failed to yield the desired results, the operators have now approached the Competition Commission.
The complaint alleges that the implementation of the Priyadarshini scheme has given KSRTC an unfair and anti-competitive advantage. It cites Section 19(1)(a), which deals with the mechanism for initiating an inquiry, and Section 4, which concerns the abuse of a dominant position, under the Competition Act, 2002.
The complainants contend that the scheme has provided an exclusive 'state-funded competitive advantage' to KSRTC, effectively diverting passengers away from private bus services.
According to the complaint, while the government compensates KSRTC for the losses incurred by offering free travel, no similar mechanism has been put in place to address the losses suffered by Kerala's private bus operators.
“The Competition Commission functions on the principle that no business should form a monopoly, which is why we have approached it to address the threat posed by the Priyadarshini scheme to private bus operators in Kerala,” Bibin Alappat, the complainant, told Onmanorama.
“We have sought uniform compensation for our losses, similar to the provisions granted to KSRTC,” he added.
Earlier, many private bus operators had filed applications with the MVD seeking a temporary halt citing financial losses.
The complaint states that the resulting losses have forced more than 750 private bus operators to wind up their operations, while others are facing severe financial strain. It notes that, despite the loss of revenue, operators must continue to meet statutory and operational liabilities, including road tax, permit fees, wages, fuel expenses and maintenance costs.
Following the implementation of the scheme, KSRTC witnessed an increase in the number of women passengers, ranging from 5.5 lakh to 12.7 lakh a day, according to official figures cited in the complaint.
Protesting the scheme, operators had earlier sold traditional snacks on buses, as Transport Minister C P John remarked that they should find alternative sources of revenue to offset losses.
Section 19(1)(a) of the Competition Act allows individuals, consumers and trade associations to approach the commission regarding alleged violations of competition law. The commission may then examine whether a prima facie case exists.
Meanwhile, Section 4 of the Act deals with the abuse of a dominant position, where an enterprise's economic strength enables it to operate independently of competitive forces.