Karnataka government issues order to clear dues of ongoing projects

The state government instructed the officials to clear dues of ongoing projects across departments, boards and corporations after checking genuineness of the bills, and in consultation with ministers

Bengaluru After an appeal by the contractors in the state, the Congress government in Karnataka has issued an order instructing officials to clear dues of the ongoing projects across departments, president of the Karnataka State Contractors Association D Kempanna said on Thursday.

Siddaramaiah had promised the contractors that his government would initiate action to stop the problem of demanding commission and assured that their interests will not be harmed. (ANI)

In an order dated June 28, the state government instructed the officials to, 1. Clear dues of ongoing projects across departments, boards and corporations after checking genuineness of the bills, and in consultation with ministers.

“2. To make all statutory payments and release/payments in respect to the ongoing external projects. 3. Funds may be released in respect to procurement of goods and services of ongoing programmes/projects. 4. The directions in circular dated:22/5/2023 regarding non-commencement of works shall continue,” the order stated.

This comes after the association headed by Kempanna, met chief minister Siddaramaiah earlier this month and appealed to the state government to clear pending bills worth ₹20,000 crore. This meeting came days after former chief minister Basavaraj Bommai asked Kempanna to speak up on commission rates being fixed by the state government ministers.

Siddaramaiah had promised the contractors that his government would initiate action to stop the problem of demandind commission and ensure that their interests will not be harmed.

The association, earlier on June 3, had also submitted a memorandum regarding the pending payments, after the newly-elected Congress government directed heads of various departments in the state to immediately halt all development projects initiated by the previous BJP government and withhold the release of funds for the work executed with immediate effect. A circular to this effect was issued by the state finance secretary on May 26.

“The CM said that they would look into it after the Budget session. We had written a letter stating that the contractors are facing a lot of issues. We had said that the government promises to look into it but doesn’t take any action. In this regard, they have issued the order yesterday,” Kempanna said on Thursday.

The order has been issued, Kempanna said, the contractors would be relieved only after they get the pending payments. “They have said that the process will begin from Monday [July 3]. The pending payments amount to over ₹15,000 crore. The bills are pending much before 2021.”

According to Kempanna, the payments are due from the last three years in the Bengaluru corporation, and the irrigation department has the highest amount of bills pending. “In the irrigation department, the officials do as they like. No one has any idea about the grants. They issue tenders however they want to. Just before the elections, they had called for a lot of tenders as well. I don’t know what will happen,” Kempanna added.

The 40% commission row had made headlines in April after the death by suicide of Belagavi-based contractor Santosh Patil, who had accused BJP leader and former minister KS Eshwarappa of demanding a 40% commission for a government project. However, a police investigation gave a clean chit to Eshwarappa, who was charged of abetting the suicide.

Kempanna had written to Prime Minister Narendra Modi in 2021, alleging that contractors had to shell out 40% commission in public projects, a charge which the Congress used as its key campaign issue to target the ruling Bharatiya Janata Party (BJP). The BJP had rubbished the allegations.

In August last year, the association, for the first time, named and accused the then state cabinet minister Munirathna of allegedly demanding bribes from contractors. Kempanna had accused Munirathna of instructing an executive engineer to collect money from contractors and threatening him of suspension from duty, if he fails to comply.

Last week, Kempanna had said he would expose the Congress government if its ministers, lawmakers or officers demand commission.