Overview
- Letters from the Karnataka State Contractors’ Association dated September 25–26 allege commissions have doubled under the Congress government and that roughly Rs 32,000–33,000 crore in bills remain unpaid.
- BJP leaders BY Vijayendra and R. Ashoka escalated the charges, claiming contractors are forced to part with up to 50–80% of contract value and demanding Chief Minister Siddaramaiah step down, branding the regime “ATM sarkara.”
- The association says departments release only 15–20% of pending bills every three months under special accounting lines, following prolonged freezes on payments across multiple ministries.
- Contractors also allege favoritism in awards through KRIDL and Nirmithi Kendra with projects handed to political followers who then subcontract after taking cuts, alongside claims of packaged tenders favoring powerful firms.
- The KSCA’s follow-up letter sought urgent part-payment of dues ahead of festivals and flagged unpaid GST arrears from 2017–21 and ‘unscientific’ mining penalties, with no formal probe or detailed government response reported so far.