Bengaluru: The Karnataka Contractors’ Association has openly criticised the Congress-led state government over the non-payment of pending bills amounting to ₹37,370 crore, warning that all government projects across Karnataka could come to a halt if the dues are not cleared by March 5. The association has also announced plans to escalate the matter to Congress National President Rahul Gandhi, highlighting what it calls persistent mismanagement, corruption and apathy within the state administration.
Addressing a press conference in Bengaluru, association President R. Manjunath disclosed the department-wise breakdown of the pending payments. According to him, the Public Works Department (PWD) alone is owed ₹13,000 crore, Rural Development and Panchayati Raj (RDPR) ₹3,800 crore, Minor Irrigation ₹3,000 crore, Urban Development ₹2,000 crore, Housing and Wakf ₹2,600 crore, Labour ₹2,000 crore, and Mines and Geology ₹2,600 crore, bringing the total outstanding amount to ₹37,370 crore.
Manjunath did not mince words while levelling serious allegations against the Congress government, claiming that corruption has infiltrated the process of releasing payments. “Percentage-based deductions and opaque practices are rampant. Previously, former minister Kempanna allegedly demanded 40 per cent cuts. We are requesting the government to reduce arbitrary deductions and release payments fairly”, he said.
The association also raised concerns over the tendering process in ten major municipalities and the Labour Department, claiming that local contractors are being systematically sidelined. According to Manjunath, tender allocations are often handled privately in offices located in RT Nagar and Rajajinagar, giving unfair advantage to select contractors while depriving genuine local players of opportunities.
Highlighting the human cost of delayed payments, Manjunath mentioned that when contractors approach authorities for their rightful dues, they are often dismissed and belittled. He cited a tragic case from Chikkaballapur, where a contractor, Munegowda, reportedly attempted suicide due to financial stress, describing it as a reflection of the unbearable situation contractors face under the current administration.
While Ministers Satish Jarkiholi and Deputy Chief Minister D.K. Shivakumar have reportedly expressed some concern, Manjunath emphasised that the Finance Department has shown little cooperation, forcing the association to consider drastic measures. “Despite political assurances, the execution remains stalled. Contractors are left in a lurch while projects remain incomplete”, he said.
As part of the association’s decision, it has set a March 5 deadline for the government to release the pending bills or at least initiate partial payments. Failing that, the association has threatened to halt all government projects across the state. Manjunath added that if immediate full payments are not feasible, the government should at least clear bills in stages to avoid a complete shutdown of essential works.
The Karnataka Contractors’ Association stressed that contractors have been facing severe hardships for over two and a half years. “We appeal to the Chief Minister not to suppress us further. We have endured immense suffering and it is time the government honours its financial obligations”, Manjunath said.
The standoff exposes significant lapses in financial management under the Congress government, with delayed payments threatening to stall infrastructure development, employment and public works across the state. Analysts warn that continued inertia could damage Karnataka’s credibility as a reliable hub for contractors and developers, raising serious questions about governance, transparency and accountability within the state administration.
