Karnataka’s bus fare hike dispute intensified after Opposition Leader R. Ashoka accused the state government of leaving ₹5,650.95 crore unpaid to the state’s transport corporations and said the arrears had pushed them towards financial collapse. He also announced a statewide protest against the proposed increase in bus fares and milk prices.
Speaking at a press conference, Ashoka said the government should have cleared its dues to the transport corporations instead of increasing the burden on passengers. He alleged that bus fares were being raised by 40% ahead of Diwali and described the move as unacceptable. The claims were reported by Prajavani.
According to figures cited by Ashoka, the state government owes ₹2,943 crore to the Karnataka State Road Transport Corporation, ₹1,306 crore to the North Western Karnataka Road Transport Corporation, ₹1,019 crore to the Bengaluru Metropolitan Transport Corporation and ₹999 crore to the Kalyana Karnataka Road Transport Corporation. Together, the alleged dues amount to ₹5,650.95 crore.
Ashoka said the government’s liabilities to the transport corporations also included ₹2,901.53 crore in employees’ provident fund dues and ₹827 crore in fuel payments. He further claimed that the total liabilities of the transport corporations stood at ₹7,130.80 crore in May 2026, including pending salaries, provident fund contributions and gratuity.
The figures place the fare dispute within a wider financing problem for Karnataka’s public bus system. Transport corporations depend on passenger revenue, government payments and other institutional support to maintain services, pay employees and purchase fuel. If government reimbursements or other dues remain unpaid, the immediate pressure can shift to fares, service levels, employee payments or supplier settlements. The source report, however, does not include a response from the state government or the transport department to the figures cited by Ashoka.
Ashoka said the proposed fare increase was the result of the Finance Department’s position that it could not provide the transport department with the funds required to meet its obligations. He blamed the government for transferring the cost of its financial decisions to passengers and alleged that Transport Minister Suresh was placing the burden on the public.
He also referred to the financial impact of the Covid-19 lockdowns, saying the transport corporations had suffered losses during that period. At the same time, he claimed that the corporations had remained profitable during the remaining period of the previous Bharatiya Janata Party government, apart from the pandemic-related disruption.
The dispute also has a direct employee dimension. Ashoka’s allegations of pending provident fund and gratuity liabilities indicate that the financial stress is not limited to the corporations’ operating accounts or passenger fares. The report does not provide independent confirmation of the amounts or specify the period over which the employee-related dues accumulated.
Ashoka said the Bharatiya Janata Party would hold a statewide protest on Thursday against the fare increase and the government’s handling of the transport corporations. The next immediate developments are expected to include the planned protests and the state government’s response to the allegations, the reported arrears and the proposed fare revision.
