HC raps govt over Rs 198 cr dues to NCC, warns fin secy

Hyderabad: Expressing concern over the prolonged delay in clearing payments to contractors who completed govt works years ago, Telangana high court on Friday questioned how such agencies were expected to survive and pay their employees. Hearing a contempt petition filed by NCC Limited, a Hyderabad-based infrastructure firm, the court observed that while contractors might earn some profit, failure to clear their dues could push them into a financial crisis.
The pending bills relate to works executed by NCC under the Mission Bhagiratha programme for supplying drinking water to Chevella, Vikarabad, Parigi, Tandur and Maheswaram constituencies from the Srisailam reservoir. The project also included operation and maintenance for 10 years under the Telangana drinking water supply project. Justice T Madhavi Devi, who heard the matter, also expressed displeasure at principal secretary (finance) Sandeep Kumar Sultania for failing to comply with earlier court directions and not appearing before the court despite being ordered to do so. Seeks report by Mar 13The judge granted the finance department a final opportunity to clear the pending dues of Rs 198 crore to NCC and submit a compliance report by March 13. Failing this, Sultania was directed to continue appearing before the court until the payment was completed. The court also dismissed an application filed by Sultania seeking exemption from personal appearance. "Except expressing regard and respect to the court, he gave no reasons for non-compliance. Hence, this application is liable to be dismissed and it is accordingly dismissed," the order stated. Responding to the state's submission that payments were made through ‘ways and means', the judge said, "You have ways and means to spend money on various schemes, but where people have spent money on development works, you do not pay them." The court also noted that the authorities had offered no explanation for the delay. "You do not pay, you do not give any commitment, you do not even explain anything," the judge observed while adjourning the matter for further hearing.Project completed in 2018According to NCC, the project was completed in 2018, but the govt had not paid any amount towards the bills. The firm had earlier approached the high court seeking clearance of dues, and in Aug 2025 the court directed the state to release the payments. When the bills still remained unpaid, the company filed a contempt petition. During the hearing, the state counsel submitted that payments were delayed because the amount involved was substantial. The judge responded that the contractor had also spent a large amount on executing the project but was still being troubled. NCC's counsel told the court that the company had borrowed money from banks at high interest rates and was under financial strain due to the pending bills. "They neither pay the amount nor give any commitments for payment," the counsel argued.