Bengaluru North Corporation Faces 40% Loss on Towing Operations

The Bengaluru North Corporation has suffered an approximate 40 percent financial loss on its recently revived towing operations between April and June, as fixed contract payments to private vendors exceeded the revenue recovered from towing charges. Despite securing a two-acre parking site in Kogilu to store seized vehicles, the municipality spent ₹12.54 lakh during this three-month period while recovering only ₹7.29 lakh, prompting officials to float a new tender.

Under the current agreement, the corporation must pay a fixed rate of ₹12.54 lakh for a three-month period to deploy two towing vehicles, which translates to about ₹2.09 lakh per vehicle per month. This fixed amount is paid to private contractors for the vehicles and manpower regardless of the number of vehicles actually towed. While the towing charges are directed to the municipal corporation, the traffic fines go to the traffic police.

During the April to June period, Bengaluru North towed 858 abandoned vehicles, which included 436 four-wheelers. However, the resulting revenue from the traffic department amounted to only ₹7.29 lakh, leaving the corporation to absorb the remaining ₹5.25 lakh deficit.

North Corporation Commissioner Pommala Sunil Kumar explained that towing operations faced initial delays because the traffic police cited a lack of suitable land to park seized vehicles. To resolve this, a two-acre site in Kogilu was identified, and the land was officially handed over through a letter to the Deputy Commissioner on May 9. Despite the acquisition of the land, towing operations failed to gain momentum.

With the previous contract now concluded, the corporation has floated a fresh tender for the deployment of two towing vehicles for a one-year period at an estimated cost of ₹60 lakh. Bids for the new contract are scheduled to open on July 1. Commissioner Kumar acknowledged that the exercise has already become a financial burden for the corporation and stated that they would coordinate with the city traffic police to address these operational challenges.

Similar financial imbalances have been reported in other zones. West City Corporation Commissioner Rajendra K.V. noted that between April 3 and June 23, the money collected was insufficient to cover service payments, with the corporation receiving only ₹11.62 lakh out of more than ₹18 lakh in total revenue. Meanwhile, traffic police sources indicated that the private vendors' towing vehicles frequently broke down and their staff often failed to report for duty.