Bengaluru Contractors Issue Ultimatum: Settle Rs 37,370 Crore Dues or Face Work Stoppage
Civil contractors in Bengaluru have issued a stern warning to the Karnataka state government, declaring that they will halt all ongoing construction works from March 5 if their pending bills, amounting to a staggering Rs 37,370 crore, are not assured for settlement. The Karnataka State Contractors' Association has expressed deep frustration over the government's inaction and has highlighted systemic issues plaguing the contracting ecosystem.
Allegations of Escalating Kickback Culture and Unfair Practices
R Manjunath, president of the Karnataka State Contractors' Association, reiterated serious allegations about a worsening kickback culture within the system. He pointed out that smaller local contractors are being systematically sidelined due to the continuation of the controversial 'package' system, which involves bundling multiple works into single contracts.
"Our past president, D Kempanna, had alleged during the previous BJP government that contractors were compelled to pay 40% kickbacks, but this has now escalated beyond that threshold," Manjunath stated. "The package system is persisting, allowing larger contractors from outside Karnataka to benefit at the expense of smaller local contractors. The government must urgently resolve these issues and formulate a concrete plan to settle our pending bills before March 5, or we will cease all work and initiate a strike."
Government's Unfulfilled Promises and Communication Breakdown
With pending bills pegged at Rs 37,370 crore, Manjunath suggested that the government could clear payments in phases if releasing the entire amount at once is not feasible. He also alleged that Chief Minister Siddaramaiah had scheduled meetings with the association's office-bearers but cancelled them without prior notice or explanation.
Furthermore, Manjunath claimed that the government has failed to implement its decision to bear the cost difference resulting from the tax rate increase under GST, which rose to 12% from the previous 4% under the VAT regime. He noted that neighboring states like Tamil Nadu, Andhra Pradesh, Odisha, and Maharashtra implemented this measure five years ago, leaving Karnataka contractors at a disadvantage.
Festival Payments and Departmental Discrepancies
The association president also criticized the present government for discontinuing the practice of releasing partial payments during major festivals such as Gowri-Ganesha, Dasara, and Deepavali, which had previously provided some financial relief to contractors.
Manjunath revealed that, barring the Public Works Department (PWD), BBMP (now Greater Bengaluru Authority), and the engineering division of the Panchayat Raj Department, no other department has taken meaningful steps to settle pending dues. He emphasized that only PWD and BBMP are adhering to seniority-based payment clearance protocols.
Serious Accusations Against Urban Development Department
Leveling grave allegations against the Urban Development Department (UDD), Manjunath accused it of being controlled by private individuals and mediators. He disclosed that the association has separately written to UDD Minister Byrathi Suresh regarding these concerns.
"With great pain, we mention that mediators are audaciously operating from their private offices, effectively controlling the UDD. The discrepancies within this department have worsened compared to the previous government," Manjunath asserted.
Department-Wise Breakdown of Pending Bills
The association provided a detailed breakdown of pending bills across various departments, highlighting the magnitude of the issue:
- Public Works Department (PWD): Rs 8,370 crore
- Water Resources Department: Rs 13,000 crore
- Rural Development and Panchayat Raj (RDPR): Rs 3,800 crore
- Minor Irrigation Department: Rs 3,000 crore
- Urban Development Department (UDD): Rs 2,000 crore
- Housing Department: Rs 2,600 crore
- Labour Department: Rs 2,000 crore
- BBMP (Greater Bengaluru Authority): Rs 2,600 crore
The contractors' ultimatum sets the stage for a potential major disruption in Bengaluru's infrastructure and development projects, with the government facing mounting pressure to address both financial and systemic grievances before the March 5 deadline.
