Karnataka Contractors Demand Rs 37K Crore Dues, Threaten Statewide Stir
Karnataka Contractors Threaten Stir Over Rs 37K Crore Dues

Karnataka Contractors Issue Ultimatum Over Massive Pending Bills

The Karnataka State Contractors' Association (KSCA) has escalated its confrontation with the state government, issuing a stern warning to clear outstanding dues amounting to a staggering Rs 37,370 crore. The contractors' body has threatened to halt all ongoing work and launch a comprehensive statewide agitation if their demands are not met promptly.

"Don't Provoke Us" Warning to Chief Minister

During a charged press conference in Bengaluru, KSCA state president R Manjunath delivered a direct message to Chief Minister Siddaramaiah, stating emphatically, "Don't provoke us, chief minister." The association has sought an urgent appointment with the CM within the coming days to discuss a phased release of funds. Manjunath warned that failure to address their concerns would result in contractors ceasing all work activities and staging a massive protest on March 5.

Plan to Petition National Leaders

The contractors' association revealed plans to submit formal petitions to Congress leader Rahul Gandhi, AICC president Mallikarjun Kharge, and Karnataka Governor Thawar Chand Gehlot, seeking their intervention in resolving the payment crisis. This move indicates the association's intention to elevate the issue beyond state-level discussions and bring it to the attention of national political figures.

Department-Wise Breakdown of Outstanding Dues

According to KSCA's detailed assessment, the Water Resources Department leads with the highest outstanding dues of approximately Rs 13,000 crore. The Public Works Department follows closely with pending payments worth Rs 8,370 crore. Other departments with significant arrears include Urban Development and Minor Irrigation Departments, though specific figures for these were not disclosed in the announcement.

Allegations of Corruption and Middlemen Influence

G M Nandakumar, General Secretary of KSCA, made serious allegations regarding tender approval processes within the Urban Development department. He claimed that middlemen are controlling tender approvals and asserted that "corruption has doubled in some departments." These accusations gain particular significance given that KSCA had previously leveled the notorious "40 percent commission" allegation against the previous BJP government in Karnataka.

Government Minister Dismisses Allegations

Urban Development and Town Planning Minister Byrathi Suresh responded strongly to the contractors' claims, accusing KSCA of "shooting in the air" without providing concrete evidence to support their allegations. The minister emphasized that ministers have no role in awarding contracts and that all processes are conducted transparently. He challenged Manjunath to produce evidence if any exists regarding the corruption claims.

Partial Payments Already Released

Minister Suresh disclosed that following a personal request from Manjunath, his department had already released Rs 200 crore in pending payments after obtaining necessary approvals from the Finance Department. This partial payment was distributed in phases, suggesting some progress in addressing the contractors' concerns, though clearly insufficient from the association's perspective.

Historical Context of Contractor-Government Tensions

The current confrontation continues a pattern of strained relations between Karnataka contractors and successive state governments. The previous "40 percent commission" allegations against the BJP administration created significant political waves, and the current Congress government now faces similar pressure from the powerful contractors' lobby. The substantial amount of pending bills—Rs 37,370 crore—represents a critical financial challenge for the state administration while threatening the livelihoods of thousands of contractors and workers across Karnataka.

The standoff highlights broader issues of governance transparency, timely payment mechanisms, and the complex relationship between government departments and private contractors executing public infrastructure projects. With the March 5 protest deadline looming, all eyes are on whether the state government can negotiate a resolution or face significant disruption to development works across Karnataka.