Karnataka contractors body warns of statewide stir if govt fails to clear Rs 37,370 crore dues

KSCA general secretary GM Nandakumar alleged that tender approvals in the Urban Development Department were influenced by middlemen, alleging “corruption has doubled” in several departments.
Karnataka contractors body warns of statewide stir if govt fails to clear Rs 37,370 crore dues
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The Karnataka State Contractors’ Association (KSCA) on Thursday, January 29 warned of halting all ongoing works and launching a statewide agitation if the government fails to clear pending bills amounting to Rs 37,370 crore.

Addressing reporters in Bengaluru, KSCA president R Manjunath said the association will submit petitions to Congress leader Rahul Gandhi, AICC president Mallikarjun Kharge and Karnataka Governor Thawar Chand Gehlot, seeking their intervention.

“Don’t provoke us, Chief Minister,” Manjunath said, urging Chief Minister Siddaramaiah to grant an appointment within the next few days to discuss a phased release of funds. If the government does not respond, contractors will stop work and protest on March 5, he added.

According to KSCA, the Water Resources Department tops the list of unpaid dues with Rs 13,000 crore, followed by the Public Works Department with Rs 8,370 crore. The Urban Development and Minor Irrigation departments also owe substantial amounts, the association said.

KSCA general secretary GM Nandakumar alleged that tender approvals in the Urban Development Department were influenced by middlemen, alleging “corruption has doubled” in several departments. 

The KSCA had earlier accused the previous BJP-led government of demanding a 40% commission, even writing to Prime Minister Narendra Modi about the issue. The Congress had made the alleged 40% commission a key campaign plank against the BJP during the last Assembly elections.

However, Urban Development and Town Planning Minister Byrathi Suresh dismissed the allegations, accusing the contractors’ body of making baseless claims. “They are shooting in the air without any evidence. Ministers have no role in awarding contracts. Everything is transparent,” he said.

Suresh added that Manjunath had personally approached him seeking the release of pending funds. “After receiving Finance Department approval, we released Rs 200 crore in phases,” he said, challenging KSCA to produce proof to substantiate its allegations.

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