Telangana High Court Demands Immediate Payment of Rs 198 Crore to Contractor
The Telangana High Court on Friday expressed severe concern over the state government's prolonged delay in clearing payments to contractors who completed public works years ago, questioning how such agencies are expected to survive and pay their employees.
Court Questions Contractor Survival Amid Unpaid Dues
Hearing a contempt petition filed by Hyderabad-based infrastructure firm NCC Limited, the court observed that while contractors might earn some profit, failure to clear their dues could push them into a financial crisis. Justice T Madhavi Devi, presiding over the matter, highlighted the dire situation facing contractors who have fulfilled their obligations but remain unpaid.
The pending bills relate to works executed by NCC under the Mission Bhagiratha programme, a flagship initiative for supplying drinking water to Chevella, Vikarabad, Parigi, Tandur, and Maheswaram constituencies from the Srisailam reservoir. The comprehensive project also included operation and maintenance for 10 years under the Telangana drinking water supply project.
Principal Secretary Faces Court's Displeasure
Justice Devi expressed clear displeasure at principal secretary (finance) Sandeep Kumar Sultania for failing to comply with earlier court directions and not appearing before the court despite being ordered to do so. The judge granted the finance department a final opportunity to clear the pending dues of Rs 198 crore to NCC and submit a compliance report by March 13.
Failing this, Sultania was directed to continue appearing before the court until the payment was completed. The court also dismissed an application filed by Sultania seeking exemption from personal appearance, noting in its order: "Except expressing regard and respect to the court, he gave no reasons for non-compliance. Hence, this application is liable to be dismissed and it is accordingly dismissed."
Government's "Ways and Means" Argument Rejected
Responding to the state's submission that payments were made through ‘ways and means', the judge pointedly remarked: "You have ways and means to spend money on various schemes, but where people have spent money on development works, you do not pay them." The court emphasized that authorities had offered no explanation for the delay, stating: "You do not pay, you do not give any commitment, you do not even explain anything," before adjourning the matter for further hearing.
Project Completed in 2018, Payments Still Pending
According to NCC, the Mission Bhagiratha project was completed in 2018, but the government had not paid any amount towards the bills. The firm had earlier approached the high court seeking clearance of dues, and in August 2025 the court directed the state to release the payments. When the bills still remained unpaid, the company filed a contempt petition.
During the hearing, the state counsel submitted that payments were delayed because the amount involved was substantial. The judge countered that the contractor had also spent a large amount on executing the project but was still being troubled. NCC's counsel informed the court that the company had borrowed money from banks at high interest rates and was under significant financial strain due to the pending bills.
"They neither pay the amount nor give any commitments for payment," the counsel argued, highlighting the contractor's precarious financial position. The court's intervention underscores the broader issue of delayed payments to contractors executing government projects, which can jeopardize their operations and employee livelihoods.
