Bankrupt Kerala businessman selling luxury bus worth Rs 50 lakh for Rs 45 per kg

A 40-seater luxury bus costs over Rs 50 lakhs which was sold by the man for Rs 45 per kg, he had 20 buses before the pandemic and is now left with only 10.

Because of the Covid-19 pandemic, many businesses have run into a loss. A similar event took place with a Luxury bus owner in Kochi, Kerala Where, a distraught Kochi bus owner made his intentions apparent by planning to sell his remaining ten luxury coaches for Rs 45 per kilo.

Things have been tough for Kochi resident Royson Joseph, and before the pandemic, he had 20 buses of various sizes. Now, after two years, he is left with ten buses. The Contract Carriage Owners Association (CCOA) is in severe circumstances after two years of the Covid-19 outbreak.  In Kerala, the CCOA has 3,500 members who own around 14,000 buses.

"Things have become tough, and my family and I are finding the situation tough. All my buses have taxes to the tune of Rs 44,000 and insurance of around Rs 88,000 that has to be paid. Last week when the Sunday lockdown was there, even when the rules stipulated that prior booked travel is possible, I was asked to pay a fine of Rs 2,000 by the police during a tourist trip to Kovalam. We are being harassed for no reason, and today, at the click of a button, if authorities punch in the vehicle registration number, they can get if our papers are in order. Still, despite all that, we are being fleeced," Joseph said.

CCOA president Binu John said this is not the first time tourist buses were being sold at a per kilogram rate.

"Many have done it, but they did not want to make the news out of shame. Joseph was very frank, and his problems are the same in the industry here, and bus owners are in deep trouble as none of the restructuring moratorium announced has come in full steam for various reasons," said John.

"After the restrictions were lifted, around 2,000 buses of our members have been confiscated for non-payment of monthly instalments. In the past two years, the Kerala government has waived taxes for three quarters; in one quarter, we got a 50 per cent rebate, and for another quarter, we got a 20 per cent rebate in quarterly tax. But these have not given the real solace at all. All our members are in dire straits, and we need more help from the government," added John.

A 40-seater luxury bus costs over Rs 50 lakhs, and for breaking even under normal circumstances, it has to get at least around 20 trips a month. Due to the Covid protocols, there are merely five trips a month now.

And with bus owners like Joseph already deciding to sell it at Rs 45 a kilo, the CCOA expects the state and Centre to extend a helping hand; if not, this industry could fall into more trouble.

With inputs from IANS

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