Bengaluru, September 29 (Daily Kiran) : The Karnataka State Contractors Association has formally requested Chief Minister D.K. Shivakumar to expedite the payment of nearly ₹38,000 crore in outstanding bills. In a letter sent on Tuesday, the association expressed dissatisfaction over the ongoing delays in payment.
R. Manjunath, the association’s president, urged the chief minister to honor his commitment made on June 30, 2026, to clear the pending bills within two months. The association highlighted that this issue has remained unresolved for nearly three years, prompting a plea for immediate intervention from Shivakumar.
In addition to addressing the outstanding payments, the contractors have called for an emergency meeting with the chief minister to discuss their grievances. They are advocating for greater transparency in the disbursement of funds across various government departments and have requested the discontinuation of the practice of issuing special letters of credit (LOC).
The contractors also demanded the release of an 8% differential amount related to GST and urged the government to prioritize local contractors for government projects. They emphasized that out-of-state contractors should not be favored when contracts are awarded in Karnataka.
Concerns were raised regarding the funding processes in different departments, with the association stressing the need for increased transparency. They noted that the Public Works Department (PWD), led by Minister Satish Jarkiholi, has shown transparency in its payment processes. This call for transparency comes amid recent enforcement actions involving Jarkiholi and his associates by the Enforcement Directorate (ED).
In a statement, the ED reported conducting raids at 21 locations in Bengaluru, Belagavi, Gokak, and Kolkata in September as part of a Foreign Exchange Management Act (FEMA) investigation. These investigations are linked to allegations of unreported foreign investments, cross-border trade relationships, and potential financial irregularities. During the raids, the agency seized ₹3.3 crore in cash, ₹15 lakh in foreign currency, and various documents related to the case.
The contractors’ association has reiterated its request for an emergency meeting with CM Shivakumar to address their complaints and expedite the payment of pending bills as soon as possible.
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