Contractors threaten to stop work over Rs 33k-cr dues; CM dares them to move court

Bengaluru: A stand-off between the govt and civil contractors escalated, with the contractors' association threatening to halt all ongoing projects and stage large-scale protests if the govt fails to clear pending dues of Rs 33,000 crore by Dec. At a press conference Friday, office-bearers of Karnataka State Contractors' Association (KSCA) accused the govt of withholding payments for over two years. They said dues from various departments have accumulated since Congress took office in May 2023. KSCA president R Manjunath said, "After suffering during the tenure of the previous BJP govt, we had hoped our plight would be addressed by Congress. It was a pipe dream. Our dues have increased to Rs 33,000 crore. Many of our demands including doing away with the package system in terms of awarding contracts and GST payment have not been met. The situation hasn't improved at all." Manjunath said earlier the govt released partial payments during major festivals like Gowri-Ganesha, Dasara, and Diwali, but this year it had not even followed that unwritten norm. He added that the govt had also failed to fulfil its promise to reimburse the difference in GST (from 18% to 12%), unlike Tamil Nadu, Andhra Pradesh, Odisha, and Maharashtra. He alleged that barring public works department, most departments were delaying payments, leading to harassment of contractors. "Congress brass assured us that if they formed the govt, they would resolve contractors' issues. Now, they are not clearing dues. Contractors are left with no option but to consider extreme measures," Manjunath said. KSCA also reiterated its opposition to the "package system" of awarding contracts, saying it favoured large players. Manjunath cited a recent labour department tender to construct residential schools worth Rs 784 crore, divided into four packages of Rs 210 crore each. "Small contractors cannot compete as eligibility demands prior experience of handling projects worth double the cost," he said. He said families of contractors were under severe stress. "Wives and children of contractors are constantly reaching out to us. We will wait another month. If payments are not made, we will launch a strong agitation," Manjunath said. On the issue of alleged kickbacks, he said, "We informed CM Siddaramaiah that under his govt, higher commissions are being collected. However, we did not tell the CM whether its 40%, 60%, or 80%." Reacting sharply, Siddaramaiah said, "What we are hearing is only the voice of contractors, but there are other people behind the scenes. Let contractors move court if they have proof of corruption." He said "vested interests" were fuelling the controversy. But Manjunath said the association would instead hold statewide protests, including a march to Raj Bhavan and a ‘Delhi Chalo' campaign. "We are not talking about corruption. It's an issue which should be addressed separately. Our concern is about pending payments," he said.