Karnataka: Contractors association serves December deadline to clear dues worth Rs 33,000 crore, warns of strike if not done

Bengaluru: The Karnataka State Contractors Association on Friday served an ultimatum to the state government to clear their arrears upto Rs 33,000 crore within a month, or else threatening to call a strike from December 1st week.

Addressing reporters during a press conference, the association’s president R Manjunath said: “Since this government came to power two-and-a-half years ago, we are demanding payment. 2-3 times we even met the CM. They assure but haven't given money. They are paying only 10-15% of the payment. We will wait till November end and after that will go on a strike and stop the work.”

He explained that they would write to Congress General Secretary (Organisation) K C Venugopal, Governor Thaawar Chand Gehlot and if possible even meet Leader of the Opposition in the Lok Sabha Rahul Gandhi also.

In 2022, the contractors’ association had accused the then BJP-led government of taking “40% commission,” which was one of the major poll planks of the Congress against the BJP.

The association’s president pointed out that Chief Minister Siddaramaiah's office has asked them to wait till Deepavali festivals. He said the office bearers of the association would meet Siddaramaiah and Deputy Chief Minister DK Shivakumar in the coming days.

According to Manjunath, there were Rs 52,000 crore dues when the Congress came to power in May 2023, and is currently around Rs 33,000 crore from eight departments.

“Except for the Public Works Department (PWD), no one is following seniority. The package tenders by the Urban Development Department in 10 city corporations is a grave injustice against medium and small contractors. Despite meeting the minister ( Byrathi Suresh) there hasn't been any use. He urged Siddaramaiah to abolish package tenders.

According to figures from the association accessed by DH, of the Rs 33,000 crore, the maximum dues of Rs 12,000 are from the Major Irrigation Department headed by Shivakumar. This is followed by Rs 9,000 from the PWD, Rs 3,600 from the Rural Development and Panchayat Raj Department, Rs 3,200 from the Minor Irrigation Department, Rs 2,000 crore from the Urban Development Department, Rs 1,500 crore from the Housing Department, Rs 800 crore from the Labour Department and some dues from the Municipal Corporation Department.

Manjunath conceded that the corruption had continued under the current regime too but refused to disclose the exact percentage or number.

‘20% comission by KK region MLAs’

However, honorary president of the association Jagannath B Shegaji went a step further, and alleged that “70%” of the MLAs cutting across parties in the Kalyana Karnataka region were taking a commission of 20%.

“Of the Rs 5,000 crore being given to the Kalyana Karnataka region, 50% is being wasted. Officers are also taking money and MLAs cutting across parties are taking 20% of the money. We will take names in the letter. If they are taking 20% for tenders only, you can imagine how much they are taking for everything.”

‘Let them go to courts’

In response to allegations by the association, Chief Minister Siddaramaiah asked them to “go to the courts.”

Dues - Rs 33,000 crore

Major irrigation - Rs 12,000 crore

PWD - Rs 9,000 crore

RDPR - Rs 3,600 crore

Minor Irrigation - Rs 3,200 crore

UDD - Rs 2,000 crore

Housing - Rs 1,500 crore

Labour - Rs 800 crore