Dues of Rs 37,000 crore pending: Karnataka contractors flag major corruption by Congress govt leaders in state, threaten to strike if payment not cleared

The Karnataka State Contractors’ Association (KSCA) on Thursday (29th January) warned the state congress government of launching a statewide strike if the government failed to pay their dues worth ₹37,370 crore. Speaking to the media, KSCA president R Manjunath said that the association will submit petitions to Congress leader Rahul Gandhi, AICC president Mallikarjun Kharge and Karnataka Governor Thawar Chand Gehlot, urging them to intervene in the matter.

“Don’t provoke us, Chief Minister,” Manjunath lashed out at Chief Minister Siddaramaiah. He sought an appointment from Siddaramaiah within the next few days to discuss a phased release of funds. Manjunath said that if the government fails to release the funds, the contractors will stop all work and launch a protest on 5th March.

The KSCA alleged widespread corruption in state government departments

According to the association, the contractors working on various state department projects are facing hardships due to unpaid dues. The Water Resources Department has the highest unpaid dues with ₹13,000 crore, followed by the Public Works Department with ₹8,370 crore. Besides, the Urban Development and Minor Irrigation departments also have significant unpaid dues.

KSCA general secretary GM Nandakumar alleged rampant corruption in several state government departments. He further alleged that tender approvals in the Urban Development Department were influenced by middlemen. “Corruption has doubled in some departments,” Nandakumar said. The association had earlier accused the previous BJP-led government of taking a 40% commission. The Congress Party had used the accusation in its campaign against the BJP during the last Assembly elections.

Karnataka Minister rejects corruption allegations

The corruption allegations of the KSCA against the Karnataka government were rejected by Urban Development and Town Planning Minister Byrathi Suresh as baseless. “They are shooting in the air without any evidence. Ministers have no role in awarding contracts. Everything is transparent,” Suresh said. He demanded proof from the KSCA to back its allegation of corruption by the state government. “After receiving Finance Department approval, we released Rs 200 crore in phases,” he added.

Suresh said that the tender process is governed by the Transparency Act and that there is no scope for any ministerial interference. “The law dictates who is eligible based on the lowest bid, technical capacity, and machinery,” Suresh said. Regarding the release of funds, the minister said, “There is a balance of roughly Rs 500 crore. The Finance Department has agreed to release Rs 200 to Rs 300 crore immediately following the current assembly session. We will ensure payments are made strictly according to seniority.”