Contractors threaten to stop work in Karnataka saying unpaid bills amount to ₹37,370 crore

The Karnataka State Contractors’ Association (KSCA) has again threatened to stop all civil work across the State and go on a strike if the government doesn’t start clearing pending bills, which reportedly amount to a whopping ₹37,370 crore. 

The Association has sought a meeting chaired by Chief Minister Siddaramaiah, who also holds charge of the Finance Department, to address their concerns, and commit to a timeline to clear pending bills in a phased manner. 

Estimate of unpaid bills

The Association is applying this pressure ahead of the State budget, preparations for which are underway in full swing. The government of Karnataka will present the State budget in the first week of March. 

Sources said KSCA is looking at a February 5 deadline for the government to respond to their demands, following which they will launch a strike. However, they have not made any announcement in this regard. 

The Association had similarly threatened a strike after Deepavali festival in October 2025, but were pacified during a meeting with government representatives. The pending bills then amounted to an estimated ₹33,000 crore. The amount has only grown since then. 

R. Manjunath, President, KSCA, said that ever since the Congress government took charge in Karnataka, pending bills had been mounting, and clearance was irregular. “Barring some bills cleared in the Public Works Department and erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP), no other department is clearing bills regularly,” he said.

G. M. Ravindra, Working President, KSCA, said that all contractors were caught in a debt trap with the interest on loans running into several crores. “Due to such a long delay and corruption, contract work is becoming unsustainable in Karnataka,” he said. 

Allegations of kickbacks, corruption

The Association has also alleged that demands for kickbacks to clear bills had not reduced and, in some cases, may have even gone up under the Congress government. This allegation gains significance as Congress ran a campaign against the previous BJP regime based on ‘40% kickback’ allegations by KSCA before coming to power in 2023.

G. M. Nandakumar, General Secretary, KSCA, alleged contracts in the Urban Development Department were being fixed by middlemen, a charge denied by UDD Minister Byrathi Suresh, who has challenged the contractors to furnish evidence and lodge complaints with the Lokayukta. 

Sources said the Association is planning to write to All India Congress Committee (AICC) president Mallikarjun Kharge and Leader of Opposition in the Lok Sabha Rahul Gandhi, drawing their attention to the crisis of mounting pending bills and corruption to clear bills in the Congress-run government in Karnataka.