Karnataka contractors’ body demands clearance of ₹37,370 crore dues, warns of stir

Karnataka contractors demand ₹37,370 crore dues cleared, warning of a statewide protest on March 5; govt says payments are being released in phases

The Karnataka State Contractors’ Association (KSCA) has issued a warning that it will halt all ongoing work and launch a statewide protest if the government fails to clear pending bills amounting to ₹37,370 crore. The association has announced plans to submit petitions to senior leaders including Rahul Gandhi, AICC president Mallikarjun Kharge, and Governor Thawar Chand Gehlot to highlight its concerns.

KSCA has sought an urgent meeting with Chief Minister Siddaramaiah to discuss a phased release of funds. The association has set March 5 as the date for a protest if its demands are not met.

According to KSCA, the largest outstanding dues are in the Water Resources Department, which owes contractors nearly ₹13,000 crore. The Public Works Department follows with dues of ₹8,370 crore, while the Urban Development and Minor Irrigation Departments also have significant pending payments.

The association has raised concerns about irregularities in tender approvals, particularly in the Urban Development Department, alleging that middlemen are influencing processes and that corruption has increased in recent years. KSCA had earlier accused the previous BJP government of demanding high commissions from contractors.

Also Read: After two years of delays, Goripalya-Hosahalli railway bridge finally opens in West Bengaluru

Responding to the allegations, Urban Development and Town Planning Minister Byrathi Suresh dismissed the claims, stating that contract awards are handled transparently and that ministers have no direct role in the process. He challenged KSCA to provide evidence to substantiate its accusations.

Suresh further clarified that pending payments in the Urban Development Department are being released in phases after approval from the Finance Department, noting that ₹200 crore has already been disbursed.

The standoff between KSCA and the government has raised concerns about potential disruption to infrastructure projects across the state if the issue remains unresolved.

Also Read: Karnataka to form special squad against illegal immigration