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Karnataka Contractors Allege Doubled Commissions and Rs 32,000 Crore in Unpaid Dues as BJP Seeks CM’s Resignation

No official response had been issued to the allegations at the time of publication.

Overview

  • An association letter to Chief Minister Siddaramaiah claims commission demands have doubled compared with the previous BJP government and pegs unpaid bills at roughly Rs 32,000–33,000 crore.
  • Contractors allege only 15–20% of bills are released once every three months, payments from multiple departments have been frozen for up to two years, and GST arrears from 2017–21 remain unpaid.
  • The letter also cites alleged favoritism in project allocation via KRIDL and Nirmiti Kendra, repackaged tenders that benefit select firms, and heavy Mines and Geology penalties reaching five times the royalty when documents are missing.
  • BJP leaders escalated the charges, with BY Vijayendra alleging contractors must give up about 50% as bribes and R. Ashoka asserting cuts have reached 80% while demanding Siddaramaiah’s resignation.
  • News18 reports the contractors later issued a second note emphasizing clearance of long-pending dues around Rs 32,000 crore and urging substantial releases ahead of upcoming festivals.