DTC couldn't recover losses from contractor for 17 buses, resulting in loss of Rs 2.82 cr: CAG

The Delhi Transport Corporation (DTC) has "failed" to recover losses from its maintenance contractor for 17 AC buses that were gutted in fire in 2015, resulting in total loss of Rs 2.82 crore up to June 2017, the CAG said in a report.

According to the report by the Comptroller and Auditor General (CAG), that was tabled in the Delhi Assembly, under a contract signed in October 2008 between "Delhi Transport Corporation and Tata Motors Limited", 2,682 fully-built low-floor buses were supplied by the latter during 2007-11 with responsibility of annual maintenance till 7,50,000 kms.

"Due to inadequacy in contract management coupled with delayed action attributed to DTC management, it could not recover the losses from Tata Motors Limited (TML) resulting from 17 burnt buses with depreciated value of Rs 5.86 crore," the report said.

It also said, "Due to non-availability of 17 buses, DTC has been suffering an annual loss of contribution of ? 1.13 crore and total loss up to June 2017 was Rs 2.82 crore. Not ensuring insurance cover for 2,682 buses also means undue benefit was extended to TML equivalent to cost of insurance cover.