RAWALPINDI, Feb 27: Owners of the disbanded Varan Tours have served a notice on the Punjab government asking it as to why the company cannot participate in the March 2 bidding for the launch of a new bus service in the twin cities.

The move followed a refusal by Punjab Secretary Transport Agha Nadim to allow Varan to bid for operating CNG buses in Rawalpindi and Islamabad.

The secretary had barred Varan on the grounds that the bus company was in default to the provincial government to the tune of Rs4 billion and had abruptly suspended its operations without any prior information.

The counsel for Varan Tours Chairperson Uzma Gul had served the notice on the Punjab transport secretary under section 8 of the Defamation Ordinance 2002. He also termed all allegations levelled against Varan by the secretary “baseless” and “frivolous”.

The notice, a copy of which was available with Dawn, also claims compensation/damages worth Rs1.2 billion from the provincial secretary in his personal and official capacity.

However, the secretary transport, Agha Nadim, told Dawn from Lahore Tuesday that he had not yet received any notice from the owners of Varan. He insisted that the bus company could not take part in the bidding as it was a defaulter.

Mr Nadim said the new bus company would be much better than Varan, asserting that: “I am not against Varan but certainly I am worried about the commuters of Rawalpindi and Islamabad, who are waiting for a new bus service since Varan closed its services and plunged them in a state of quandary.”

Uzma Gul, when contacted, said she would participate in the bidding at every cost as it was her basic right to be a part of an open competition for starting a bus service in the twin cities.

The provincial government has also objected to Varan’s participation in the bidding as it was illegally occupying the Chur Harpal bus terminal.

But Ms Gul said she was entitled to use the terminal under an agreement signed between her company and the provincial government.