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The Karnataka State Contractors’ Association has issued an ultimatum to the state government, demanding clearance of pending dues worth Rs 33,000 crore by December 1, 2025. Failing this, the association has threatened to halt all ongoing public works across departments starting the first week of December.
Addressing a press conference on Friday, October 17, association president R Manjunath said that despite repeated appeals over the past two-and-a-half years, the government has failed to clear payments owed to contractors. “We have waited for two and a half years; we will wait another 44 days. After that, we will stop all work and approach Rahul Gandhi, AICC president Mallikarjun Kharge, and K.C. Venugopal for intervention,” he said.
Manjunath added that the association has met Chief Minister Siddaramaiah five to six times and held discussions with several ministers, but only minor payments have been made so far.
According to the association, the pending dues include Rs 12,000 crore from the Major Irrigation Department, Rs 9,000 crore from the Public Works Department (PWD), Rs 3,600 crore from the Rural Development and Panchayat Raj Department, Rs 3,200 crore from the Minor Irrigation Department, Rs 2,000 crore from Urban Development, Rs 1,500 crore from Housing, Rs 800 crore from Labour, and smaller amounts from other departments. Manjunath said the PWD is releasing funds based on seniority, but other departments are not following suit.
The association also claimed that corruption continues under the current Congress government. “I have said in the letter that the commission has doubled when it comes to releasing payments. I am not saying there is no bribery in the Congress government, small contractors have reached a point of drinking poison,” Manjunath said. He alleged that a retired official, Balaraj, facing corruption charges, was appointed in the Housing Department, and urged Minister Zameer Ahmed Khan to remove him.
Honorary president Jagannath B Shegaji alleged that nearly 70 MLAs, cutting across party lines, were taking commissions of 15–20% in package contracts in the Kalyana Karnataka region. “Of the Rs 5,000 crore allotted to Kalyana Karnataka, about 50% is being wasted. Officers and MLAs are taking money through these tenders. When we write to the high command, we will name them,” he said.
Manjunath said the Chief Minister’s office had asked contractors to wait until after Deepavali, but warned that if payments were not released, the association would file complaints with the Governor in December. “The CM said a meeting would be held after the festival to resolve the issue. If not, we will go on strike,” he said.
In response to the allegations, Chief Minister Siddaramaiah said that contractors who believe corruption is taking place should approach the courts. However, Manjunath dismissed the suggestion, stating, “We will not go to court. We will go on strike.”