Karnataka: Contractor Dues Dispute Triggers Sharp Political Exchange in State

Karnataka:: A dispute over unpaid bills to government contractors has escalated into a political confrontation in Karnataka, with the ruling Congress and the opposition Bharatiya Janata Party trading blame as the state Assembly session gets underway. The controversy follows claims by contractors that tens of thousands of crores remain unpaid, raising concerns about stalled projects and financial stress across the sector.

Congress Cites Legacy Issues From Previous Government

Chief Minister Siddaramiah has rejected opposition accusations, stating that a substantial portion of the pending payments predates the current administration. According to him, unpaid bills accumulated during the earlier BJP-led government were inherited by the present Congress government.

He acknowledged that outstanding dues exist but insisted that responsibility cannot be placed solely on the current dispensation. The chief minister maintained that the government is examining the issue and working through liabilities carried forward from the previous term.

Minister Breaks Down Outstanding Amounts

Senior minister Ramalinga Reddy echoed the chief minister’s position, offering a financial breakdown of the disputed figure. He said that roughly Rs 20,000 crore of the total Rs 38,000 crore in unpaid bills relates to projects approved under the earlier BJP government, with the remainder linked to the current tenure.

Reddy added that payment backlogs have compounded over time and require systematic resolution. He noted that the administration must account for obligations from multiple years while ensuring that essential public works continue without disruption.

BJP Accuses Government of Administrative Failure

Opposition leaders have countered these explanations, accusing the Congress government of failing to uphold basic contractual norms. Former deputy chief minister C N Ashwath Narayan said timely payments are essential for contractors to deliver quality work and maintain financial stability.

He argued that delayed payments open the door to irregular practices and alleged that corruption complaints have resurfaced under the current government. Ashwath Narayan also pointed out that similar contractor grievances were highlighted by the Congress during the previous Assembly election campaign.

Political Rhetoric Intensifies Over Corruption Claims

The BJP has sharpened its attack by alleging widespread corruption linked to the delay in clearing contractor bills. Party leader Arvind Bellad claimed that internal power struggles within the ruling party have aggravated the situation.

Bellad alleged that competition for leadership positions has led to excessive demands on contractors, a charge the Congress has firmly denied. The ruling party has dismissed these statements as politically motivated and lacking evidence.

Contractors Warn of Work Stoppage

At the center of the dispute is the Karnataka State Contractors’ Association, which has warned of serious consequences if payments are not released promptly. Association president Manjunath said contractors are collectively owed around Rs 38,000 crore and that repeated appeals to various departments have yielded little progress.

He added that the financial strain has taken a personal toll on contractors and announced plans for protests if the matter remains unresolved. The association has threatened to halt work from February and stage a statewide strike in early March. Letters outlining these concerns have also been sent to senior national leaders, including Rahul Gandhi.

Assembly Session Likely to See Further Confrontation

With the issue dominating political discussion during the ongoing Assembly session, both parties appear poised to continue their exchanges. The Congress government has said it will review pending payments and engage with stakeholders, while the BJP has indicated it will keep the pressure on through legislative and public forums.

As the debate unfolds, contractors and citizens alike are watching closely, given the potential impact on infrastructure projects and public services across Karnataka.