The Karnataka State Contractors’ Association has alleged that 75% of MLAs demand commissions from contractors. The association claims nearly Rs 38,000 crore in bills remain unpaid and threatens statewide protests if dues are not cleared by November-end.
The Karnataka State Contractors’ Association has alleged that 75% of MLAs in the state are demanding commissions from contractors involved in government projects. Association president R. Manjunath claimed that contractors are facing increasing pressure to pay commissions during the tendering process and for the clearance of bills. The association has also raised concerns over nearly Rs 38,000 crore in pending payments across government departments, warning of statewide protests if the dues are not cleared by the end of November.
Contractors Allege Rise In Commission Demands
Speaking at a press conference on Wednesday, association president R. Manjunath said MLAs previously sought financial support from contractors mainly during elections. However, he alleged that legislators are now interfering in project approvals and tender processes.
According to Manjunath, contractors are expected to meet the local MLA once a tender is approved and pay commissions after their bills are cleared. He further alleged that tender conditions are sometimes changed to favour individuals associated with MLAs when contractors refuse to meet commission demands.
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Manjunath also claimed that officials and middlemen are being used to pressure contractors into paying commissions.
He alleged that commission demands have increased compared with the previous government's tenure. According to him, the commission rate was around 40% under the previous government. He further claimed that contractors were being asked to pay commissions to ministers across departments, with the Public Works Department (PWD) and the Greater Bengaluru Authority (GBA) cited as exceptions.
Manjunath said the association was ready to release a list of public representatives allegedly involved in commission demands if Chief Minister D.K. Shivakumar gave the go-ahead.
Rs 38,000 Crore In Pending Bills
The association has claimed that approximately Rs 38,000 crore in bills remains unpaid across eight government departments, affecting around 1.5 lakh contractors across Karnataka.
Manjunath said the association had written to Chief Minister D.K. Shivakumar seeking the release of the pending payments, but the issue remained unresolved.
The association has warned that if the government fails to clear the dues by the end of November, it will release documents allegedly relating to commission payments involving MLAs, officials and middlemen.
Contractors are also planning a statewide padayatra to draw the government's attention to the issue. Under the proposed protest, contractors will march from their respective district association offices to the Deputy Commissioner's office, covering one district each day.
Manjunath said around 1.5 lakh contractors were struggling because payments for completed works had remained pending for nearly four years.
Expressing frustration over the delay, he said that if the government failed to release the payments even after the protests, it might as well give contractors poison to drink and let them die.
Association General Secretary G.M. Nandakumar, Honorary President Krishna Reddy, Working President Dinesh and Hanumanthaiah were present at the press conference.
Manjunath Challenges MLAs To Take An Oath
Association president R. Manjunath challenged MLAs to visit a temple and swear before God that they had not accepted commissions from contractors.
He said contractors were also ready to take the oath and questioned whether the MLAs would accept the challenge.
Department-Wise Pending Bill Details
According to figures provided by the association, the pending bills across the departments are as follows:
Department Pending Amount
- Water Resources Rs 14,000 crore
- Public Works Department (PWD) Rs 8,370 crore
- Minor Irrigation Rs 3,600 crore
- Rural Development and Panchayat Raj (RDPR) Rs 3,000 crore
- Housing and Waqf Rs 2,600 crore
- Greater Bengaluru Authority (GBA), formerly BBMP Rs 2,600 crore
- Labour Rs 2,000 crore
- Urban Development Rs 1,800 crore
- Total Rs 37,970 crore
The department-wise figures add up to Rs 37,970 crore, which is approximately Rs 38,000 crore.
