In what could snowball into a major embarrassment for the ruling Congress, the Karnataka State Contractors Association (KSCA) has directly accused Chief Minister Siddaramaiah’s administration of presiding over unprecedented levels of corruption. The association, which had earlier spearheaded the famous “40 per cent commission” charge against the BJP, has now said in writing that corruption in several government departments has “doubled” compared to the previous regime.
In a strongly worded letter dated September 25, addressed to the Chief Minister, KSCA president R. Manjunath and general secretary G.M. Ravindra detailed how commissions and irregularities have become institutionalised under the Congress rule. The contractors’ body accused senior leaders, officials, and politically connected intermediaries of creating a nexus where only those loyal to the ruling party MLAs and ministers are allowed to bag projects.
“When you were in the opposition, you assured us that once in power, your government would end the commission raj and no contractor would be forced to pay bribes to get bills cleared. But today, the reality is starkly different. We regret to state that the percentage of commission demanded has now doubled under your government compared to the previous one,” the KSCA said in its letter.
According to the association, departments like Nirmiti Kendra and the Karnataka Rural Infrastructure Development Corporation Ltd (KRIDL) have been functioning as political tools rather than public institutions. Projects are first handed to “followers” of elected representatives or party workers, who then subcontract the work to senior contractors after taking a hefty cut. “This chain of sub-contracting makes it nearly impossible for us to maintain quality, as commissions and middlemen already eat into the budget,” the letter alleged.
This is the first time the KSCA has formally documented corruption under the Congress government, although its leaders had earlier made oral accusations. The move is reminiscent of July 2021, when the same body had written to Prime Minister Narendra Modi alleging that BJP ministers and officials were demanding cuts to clear bills. That letter had sparked the “40 per cent commission” controversy, which Congress exploited relentlessly to corner the BJP in the run-up to the 2023 Assembly polls.
Ironically, the KSCA now reminds Siddaramaiah that it was their agitation against corruption that helped the Congress secure power. “It was our fight against the previous regime’s corruption that contributed to your victory. But instead of cleaning the system, your government has taken it to a new high,” the letter stated.
The contractors’ association is also pressing the government to clear pending dues amounting to nearly Rs 32,000 crore. According to the letter, while the Chief Minister has given assurances on multiple occasions and even directed officials to act, very little has changed on the ground.
“Out of respect for you, we have been patient and hopeful that our issues would be addressed. But we are yet to see any real benefit. Departments are refusing to follow seniority in clearing pending bills. Instead, they have devised their own formulas to favor chosen contractors. Only 15–20 per cent of the pending bill amount is being released once in three months, which is untenable for us,” the KSCA charged.
Apart from commissions, the association has flagged serious irregularities in the tendering process of key departments, including municipal administration, urban development, and labour. According to the KSCA, officials are “arbitrarily converting smaller works into large packages” so that they can be awarded to “powerful contractors close to ministers.”
“This is being done with the full knowledge of concerned ministers, who are deliberately turning a blind eye. The end result is that independent contractors are being squeezed out, while party loyalists continue to benefit,” the letter said.
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