According to sources nearly 60 Grade A and B contractors met the Commissioner and requested him to clear their dues.
The Palike, which has signed a memorandum of understanding (MoU) with Canara Bank, has paid the contractors through the bank – which will be repaid later.
This would mean that not only will the Palike have to pay up the Rs 240 crore but also will be obliged to pay interest for the same.
Already facing criticism over proposing a budget with no ‘real’ finances to support the implementation, the situation in the Palike has only worsened with the latest development.
Moreover, sources say that the Palike, which has cleared Rs 240 crore in payments, still has about Rs 1,500-1,600 crore worth payments to make to various contractors.
Meanwhile, the BBMP Contractors Association on Wednesday morning had threatened to stop all on-going projects if their bills were not cleared in the near future. They had cornered the commissioner over the issue.