Contractors threaten to stop work in Karnataka saying unpaid bills amount to ₹37,370 crore

Karnataka contractors threaten a strike over ₹37,370 crore in unpaid bills, alleging increased kickback demands under the Congress government.

The Karnataka State Contractors’ Association (KSCA) has again threatened to stop all civil work across the State and go on a strike if the government doesn’t start clearing pending bills, which reportedly amount to a whopping ₹37,370 crore. 

The Association has sought a meeting chaired by Chief Minister Siddaramaiah, who also holds charge of the Finance Department, to address their concerns, and commit to a timeline to clear pending bills in a phased manner. 

The Association is applying this pressure ahead of the State budget, preparations for which are underway in full swing. The government of Karnataka will present the State budget in the first week of March. 

Sources said KSCA is looking at a February 5 deadline for the government to respond to their demands, following which they will launch a strike. However, they have not made any announcement in this regard. 

The Association had similarly threatened a strike after Deepavali festival in October 2025, but were pacified during a meeting with government representatives. The pending bills then amounted to an estimated ₹33,000 crore. The amount has only grown since then. 

R. Manjunath, President, KSCA, said that ever since the Congress government took charge in Karnataka, pending bills had been mounting, and clearance was irregular. “Barring some bills cleared in the Public Works Department and erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP), no other department is clearing bills regularly,” he said.