Karnataka: KEONICS vendors seek mercy killing in letter to President; Contractors demand Rs 32,000 cr payment release
December 5, 2025
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Home Bharat

Karnataka: KEONICS vendors seek mercy killing in letter to President; Contractors demand Rs 32,000 cr payment release

KEONICS vendors, facing severe financial distress and bureaucratic harassment, have written to the President seeking mercy killing as a plea for justice. Meanwhile, the Karnataka State Contractors' Association has demanded the urgent release of Rs 32,000 crore pending payments, highlighting corruption and unfair practices.

IndreshIndresh
Jan 15, 2025, 12:00 pm IST
in Bharat, Karnataka
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The situation for Karnataka State Electronics Development Corporation Limited (KEONICS) vendors, who have been enduring relentless harassment and financial instability, has reached a breaking point, prompting them to seek drastic measures and hold the government accountable for their plight. In a desperate plea for justice, the Kionics  Vendors Association has recently written a letter to the President of India, calling for euthanasia as a way out of their suffocating despair induced by unchecked bureaucratic negligence.

Accusations of Neglect and Extortion

According to the Association’s President, Vasantha Bagera, the ongoing harassment has devastated over 6,000 families that depend on the livelihoods generated by approximately 450 to 500 vendors associated with KEONICS. He emphasises that the vendors are on the brink, with many contemplating suicide due to the financial strife caused by the state government’s lack of action. “KEONICS has been harassing us daily and has taken away the lives of the vendors. We are tired of them,” Bagera states in the letter. The Association expresses that the emotional and financial toll has left them with no further options for survival.

For nearly 48 years, KEONICS has operated in the state, facilitating connections between small entrepreneurs and various government departments. However, the change in government in 2023 seems to have triggered a swift and cruel deviation from this long-standing partnership, marking the onset of a nightmare for these vendors. The letter outlines a disturbing trend: after months of unsuccessful pleas to pay their outstanding bills, vendors have been subjected to bribery demands and bureaucratic stonewalling, primarily initiated by former Chief Administrative Officer Sangappa, who allegedly demanded a commission of 12 per cent.

A Call for Accountability

As grievances mounted and a protest took place against the corrupt officer, the retaliation from Minister Priyank Kharge and MLA Sharath Bachegowda manifested in false accusations aimed at discrediting the vendors. “Keeping in mind the mistakes made by a handful of vendors, all of us faced unfair treatment,” the letter asserts. Promises of resolution turned into endless delays, with officials citing vague investigations as reasons for withholding vendors’ dues.

Despite repeated appeals to high-ranking officials including Kharge and Bachegowda, along with the corporation’s Chief Executive Officer, the vendors have seen no relief. “We have brought all these problems to the attention of the Chief Minister, concerned officials, and the Governor multiple times, but there has been no response,” said Bagera. He condemned the government for seemingly revelling in the suffering of the vendors, withholding their funds as leverage.

Desperation Breeds Tragedy

With the introduction of new recruitment rules purportedly benefiting large companies while disqualifying established vendors, the Association feels betrayed. “For 48 years, the Karnataka government has promoted small entrepreneurs. Now, under this regime, we are thrown into chaos and financial ruin,” Bagera remarked. The letter articulates the anguish of over 6,000 families who have painstakingly built their lives on the foundation that the Karnataka State Electronics Corporation was established to support.

“Now,” they lament, “we see these hard-fought rights washed away as bureaucratic machinery spins wildly, leaving us on the streets without recourse or support.” The frustration is palpable; KEONICS is accused of operating like a private enterprise, disregarding the lives it impacts.

The vendors express their fears: “If our bills are not paid within a week, there will be irreversible consequences. We are weary of life, and any further delay might push us toward tragic decisions.” The gravity of their situation cannot be overstated; the looming threat of suicide reflects the desperation they face.

Responsibility and Urgency

The vendors make it clear who they hold responsible: “If any of us lose our lives, Information and Technology Minister Priyank Kharge, Corporation Chairman Sharath Bachegowda, CEO Pawan Kumar Mallapatti, and Director (Finance) Nishchit are directly accountable.” Their letter closes with a haunting declaration: if their demands are ignored, 450 to 500 vendors are prepared to unite in death rather than continue to endure this torment.

This letter serves as a cry for help and condemnation of governmental apathy towards small businesses and the real human consequences of bureaucratic inaction. The KEONICS vendors are imploring the government to recognize the urgency of their plight and act before it’s too late. Their lives, families, and futures hang in the balance, and failure to provide them with the justice they seek may lead to a tragic loss of life—a grim testament to the system’s failure to protect its most vulnerable citizens.

Contractors Association Calls for Urgent Payment Release of Rs 32,000 Crore

The Karnataka State Contractors’ Association has contacted seven state ministers, voicing urgent concerns regarding the delayed payment of dues, which they claim totaling approximately Rs 32,000 crore. In their correspondence to Deputy Chief Minister DK Shivakumar and ministers Priyank Kharge, HC Mahadevappa, Zameer Ahmed Khan, NS Bosaraju, Dinesh Gundurao, and Rahim Khan, the Association expressed frustration over the ongoing payment issues, suggesting that disbursements are not being prioritized fairly.

In their letter, the contractors labelled the current payment delays as inequitable and unjust, warning about potential protests if their grievances are not addressed swiftly. They criticized government officials and ministers for inadequate responses to multiple payment requests. According to the contractors, when they sought assistance from officials, they were often advised to speak directly with the ministers, who have yet to provide any resolution.

The Association has demanded a meeting within a week of sending the letter, stressing the importance of resolving the issue promptly. Should their requests go unheeded, they indicated they would escalate their grievances to Chief Minister Siddaramaiah and organize large-scale protests.

The contractors specified that a significant portion of the pending dues—approximately Rs 14,000 crore—owed to the irrigation department alone. Interim president Jagannath Shegji alleged that contract awards are contingent upon commission payments, unfairly burdening contractors. He also claimed that corruption related to contract work is increasingly tied to MLAs, with nearly 70 per cent of them reportedly involved in unethical practices.

In response to these accusations, Home Minister G Parameshwara requested Shegji to provide the names of the implicated MLAs, promising to escalate the concerns to the Chief Minister and the leadership of the Congress party.

Topics: KEONICS vendorsKarnataka State Electronics DevelopmentKEONICS
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