Loan burden forcing taxi drivers to sell vehicles
Coronavirus Update, COVID-19, News

Loan burden forcing taxi drivers to sell vehicles

August 20, 2020

COVID financial help by Govt. not reached even 10% of drivers

Mysore/Mysuru: Drivers-cum-owners of taxis in city, who have already suffered huge loss following COVID lockdown, are yet to earn their normal livelihood and now, with banks asking them to repay their loans, they are forced to sell their vehicles.

Also the Rs. 5,000 financial help announced by the Government has not reached even 10% of drivers. This apart, road tax and insurance are also exerting pressure on drivers-cum- owners and with no business, their earnings have come down drastically which is also another factor for them to sell their vehicles.

Many taxi drivers, who have either attached their vehicles to various travel companies or driving them on their own are members of Mysore District Tourist Vehicle Drivers and Owners Welfare Association. They told Star of Mysore that the Rs. 5,000 financial help by the Government has not reached them. They further said that they had received a message asking them to link their Aadhaar Card number and after doing the same the only message they got was ‘your documents are being checked.’ Nothing more has happened, they added.

Kishan, a driver, said that he was working as a driver of a cab at a travel company and following lockdown for three months, he was removed from the job.

He further said that his handicapped father often falls ill and he is unable to pay for the treatment and also buy medicines. “I have to pay the house rent for four months, take care of the family and even the Government’s financial help has not reached me,” Kishan rued.

Venkatesh, an owner-cum- driver said, “I purchased a new vehicle in January and have paid two loan instalments. Lockdown was enforced from March and though the RBI extended the moratorium for bank loans till Aug. 31, private finance companies were forcing to pay the loan instalments. I somehow managed to pay the instalment of a month. But now, I do not have any financial resource and with zero income, I am planning to sell the vehicle. But the buyers are ready to purchase only for half the price. I am confused and don’t know what to do.”

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Meanwhile, Mysore District Tourist Vehicle Drivers and Owners Welfare Association Vice-President R. Prabhakar said that a few travel companies are not paying salaries for drivers, who are working since 10 years at the companies. “The lives of drivers are in distress. The company managements tell them to work if they are interested or leave. A 35-year-old travel company, following enforcement of lockdown has removed 150 drivers. Where will these drivers go?” he asked.

Prabhakar further said that if the public hire taxies instead of moving around in their own vehicles many drivers would earn their livelihood. “We take all precautions to prevent the spread of COVID-19 and the public need not fear about it. We request industrialists, public and officials to utilise our services,” he appealed.

More than 80 owners ready to sell their vehicles: Mysore District Tourist Vehicle Drivers and Owners Welfare Association President S. Nagaraj said that more than 80 owners- cum-drivers of the Association have come forward to sell their vehicles.

“Though they sell their vehicles, they are not getting the correct price. Buyers ask for half the price of the vehicle. I had bought a Toyota Innova for Rs. 13.5 lakh and sold it for Rs. 5 lakh recently. I should have got at least Rs. 8 lakh for it. But as I was in deep financial crisis, I had to sell it for a very low price as there was no options,” he said.

He further said that the Association has 850 members and the Government’s financial help of Rs. 5,000 has not even reached 10% of them. 

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“We have requested the Government to give time till next January for repayment of loans, road tax and insurance,” he said and added that there are 150 travel agencies, 4,000 taxies and tourist vehicles in Mysuru district. Many taxi drivers have sold their vehicles and are now selling face masks to earn their livelihood, while a few have indulged in agricultural activities, he added.

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