The corporation is also going to take legal action against Rora Enterprise, the firm that had been running the two terminals, for its failure to pay the DCC its dues under the contract, a DCC official said.

The formalities have been almost completed for allotting the two terminals to Panama Enterprise, which had come second behind the highest bidder Rora for taking over the operational responsibilities in the first tender.

DCC officials claim that Rora owes the Corporation Tk 92,83,000 from Sayedabad terminal including Tk 21,42,200 in VAT. Rora also allegedly did not pay Tk 30,15,000, including about Tk. 6,95,000 in VAT, from Mohakhali terminal for six months (October 2003-March 2004).

The DCC handed over the maintenance responsibility of Sayedabad, Mohakhali and Gabtoli bus terminals to the two private operators Rora Enterprise and Diba Enterprise, on a three-year contract starting from September 24, 2003 with a view to provide better safety, security and cleanliness to passengers.

The service charge for each bus was fixed at Tk. 30 a day. The operators were supposed to pay the DCC Tk 11,90,000 for Sayedabad, Tk 3,86,000 for Mohakhali and Tk 11,39,000 for Gabtoli every month from October 2003.

The DCC issued a contract termination letter to Rora effective March 16 for violation of the agreement. Rora reportedly sent a reply saying that the DCC can not terminate the contract unilaterally.

Since March 16, DCC staff has been collecting Tk 30 in service toll from the two terminals for each bus, said sources.

In their letter Rora termed the DCC action 'unjust' as the other private operator Diba, in charge of Gabtoli terminal is also not paying the DCC according to the contract.

When asked why similar measures are not being taken against that operator, an official of the DCC could not give any satisfactory reason.

The DCC was yet to receive Tk 88,84,000 including Tk 20,50,000 in VAT, from Gabtoli operator for the last six months.

"We are incurring huge losses as the two big enterprises who own more than 500 buses are not paying DCC fixed toll to us. Of course we will pay the amount that we are supposed to pay to the DCC," said Babul Ahmed, one of Diba's owners.

"We will discontinue operation if the DCC cannot make them pay us the toll. We have written to the mayor seeking his intervention," he said.

Dhaka Mayor Sadeque Hossain Khoka was not available for his views as he is out of the country on an official visit.