Karnataka contractors seek release of Rs 38,000 crore pending bills

The Karnataka State Contractors’ Association has urged Chief Minister D.K. Shivakumar to clear around Rs 38,000 crore in pending bills. The association also demanded transparency in fund releases, an end to special LOCs and preference for local contractors

Bengaluru: The Karnataka State Contractors’ Association on Tuesday has written to Chief Minister D.K. Shivakumar seeking the release of around Rs 38,000 crore in pending bills and expressing dissatisfaction over the delay in clearing payments.

Association President R. Manjunath urged the Chief Minister to fulfil his assurance of clearing the pending bills within two months. The association recalled that Shivakumar had promised on June 30, 2026, that the outstanding payments would be released within two months.

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The association said the issue had remained unresolved for nearly three years and urged the Chief Minister to intervene and take immediate steps to clear the dues.

It also sought an emergency meeting with the Chief Minister to discuss the grievances of contractors. The association demanded transparency in the release of funds by various government departments and sought an end to the practice of issuing special Letters of Credit (LOCs).

The contractors also demanded the release of the 8 per cent difference arising from GST and sought preference for local contractors in the award of government works. They urged the government not to encourage contractors from other states while issuing contracts in Karnataka.

The association also raised concerns over the manner in which funds are being released across departments and called for greater transparency in the process.

The contractors said there was transparency in payments related to the Public Works Department (PWD), headed by Minister Satish Jarkiholi. The association’s comments come amid the Enforcement Directorate’s recent searches linked to Jarkiholi and his associates.

According to an ED statement, searches were conducted at 21 premises in Bengaluru, Belagavi, Gokak and Kolkata in September in connection with a FEMA investigation concerning alleged undisclosed overseas investments, cross-border business links and suspected financial irregularities. The agency said it seized Rs 3.3 crore in cash, Rs 15 lakh in foreign currency and documents during the searches at the premises of Jarkiholi and his associates.

The contractors’ association has urged CM Shivakumar to convene an emergency meeting, address their grievances and take steps to clear the pending bills at the earliest.