<p>According to sources nearly 60 Grade A and B contractors met the Commissioner and requested him to clear their dues.<br /><br />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. <br /><br />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.<br /><br />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.<br />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.<br /><br />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.<br /></p>
<p>According to sources nearly 60 Grade A and B contractors met the Commissioner and requested him to clear their dues.<br /><br />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. <br /><br />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.<br /><br />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.<br />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.<br /><br />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.<br /></p>
