Karnataka Contractors Association Raises Concerns Over Commission Rates and Pending Payments

Concerns Raised by Contractors in Karnataka

The Karnataka Contractors Association has expressed serious concerns in a letter to Chief Minister Siddaramaiah, alleging that commission rates have doubled under the Congress government. They highlighted the issue of pending dues and unresolved matters affecting contractors across the state, claiming that the government owes them ₹33,000 crores. The letter stated, 'We have not received any benefits from your government. Numerous meetings have been held over the past two years to address these issues and outstanding payments.' The association noted that they have been repeatedly assured that the problems would be resolved, yet no tangible benefits have been realized from the government.

Read More: Political Debate Over Dussehra Inauguration: Siddaramaiah Criticizes Opponents, Says Dussehra is Not a Festival of One Religion

The letter further indicated that commission rates in certain departments have increased compared to the previous government. The association accused eight government departments of failing to pay pending bills through contractors. Despite meetings with relevant ministers and secretaries, no resolutions have been achieved. The letter accused departments of ignoring seniority and transparency laws, creating their own formulas, and only releasing 15 to 20 percent of pending dues every three months under a specific contract accountant (AOC). Despite repeated reminders to the Chief Secretary of the Finance Department over the past two years, contractors have not received the Goods and Services Tax (GST) dues for the years 2017-18, 2018-19, 2019-20, and 2020-21.

Read More: Controversy Over Karnataka Caste Census: BJP MP Claims Fear and Discontent Among All Communities

The association further alleged that the Department of Mines and Geology has imposed unreasonable fines on contractors' vehicles, charging five times the royalty amount for failing to submit mineral dispatch permits (MDP), despite assurances from the former Public Works Department Secretary that the government would cover the difference. Additional complaints highlighted unfair practices within Karnataka Rural Infrastructure Development Limited (KRIDL) and other entities, where it is alleged that followers of elected representatives are awarded contracts, leading to demands for funds from senior registered contractors, complicating the management and quality of subcontracted projects.