The Karnataka State Contractors’ Association (KSCA) has once again raised serious allegations of undue interference in government departments, this time naming relatives of senior ministers in the Siddaramaiah-led Congress government. KSCA president R Manjunath on Thursday, April 10, alleged that corruption had worsened under the current administration and accused middlemen and family members of ministers of influencing the clearance of bills.
In letters addressed to Chief Minister Siddaramaiah, Deputy Chief Minister DK Shivakumar, Public Works Minister Satish Jarkiholi, and Minor Irrigation Minister NS Boseraju, the association demanded an urgent meeting to address the alleged favouritism shown to large contractors over smaller and mid-level ones. It said that the situation had deteriorated over the past three to four months, with “unseen hands” bypassing seniority-based billing and favouring large contractors through the issue of special letters of credit (LOCs).
“Despite having decided that small contractors would be paid Rs 5 lakh to 50 lakh, big contractors are being given special letters of credit (LOC). Contractors are struggling due to pending bills,” the association wrote.
The KSCA accused Minister DK Shivakumar’s office of being frequented by brokers who approach contractors with offers to get their bills cleared. Manjunath further alleged that in Minister Jarkiholi’s department, a relative had begun influencing decisions in recent months. “Jarkiholi is an honest man, but an unseen hand has entered his department,” he said. Regarding Minor Irrigation Minister Boseraju, Manjunath directly alleged that the minister’s son, Ravi Boseraju, was “making all the deals.”
The allegations come just a day after the Chief Minister’s Economic Advisor, Basavaraj Rayareddi, commented about corruption being rampant in Karnataka. The association also reiterated its earlier demand for the release of Rs 15,000 crore—half of all pending dues to contractors.
Speaking to reporters in Chitradurga, Manjunath said, “For releasing money (by clearing bills), a higher commission is now being taken compared to the previous government.” He added that the problem of commission—popularly referred to as the “40% cut”—had become more widespread under the current administration. This allegation was previously used by the Congress party itself during the 2023 Assembly elections to target the BJP government.
The contractors’ association claimed that even after a decision to clear bills based on seniority was made, the system had been subverted. In its letter, the association wrote: “The sanctity of the process was maintained earlier, but in the last three months, this has changed. Invisible forces are spoiling the system.” The KSCA asked for documentation to be shared on the criteria used to clear pending bills and requested that Rs 15,000 crore—half of the total dues—be immediately released to ease the financial burden on contractors.
The association also highlighted the inaction of four key irrigation bodies—Visvesvaraya Jala Nigam, Cauvery Neeravari Nigam, Karnataka Neeravari Nigam, and Krishna Bhagya Jala Nigam—which fall under the Water Resources Department headed by DK Shivakumar. “Contractors are suffering, and there is no accountability from these bodies,” Manjunath said, adding that if the situation did not improve, the association would begin “naming names and speaking openly” about the corruption.
In response, DK Shivakumar denied the allegations and urged the association to submit a written complaint either to the Lokayukta or to the government. “The government is committed to transparency and will not allow any scope for bribery. If anyone is involved in such things, let them (contractors) give it in writing,” he said.
Minor Irrigation Minister Boseraju also refuted the charges and offered to resign if any wrongdoing on his part was proven. “My son (Ravi Boseraju) is into politics. When I’m busy, he meets people in the office, but he hasn’t touched a single rupee or signed any file,” he said.
Public Works Minister Jarkiholi maintained that his department had so far honoured the decision to prioritise smaller contractors. “There is a provision to issue special LOCs for up to 20% of the pending bills. If there are issues, I am ready to hold discussions and take corrective measures,” he said.