Karnataka Contractors Association Claims Commission for Payments Doubled Under Congress Government

The Karnataka State Contractors Association has accused the Congress government of doubling commission rates for payment approvals compared to the previous BJP administration. They highlight ongoing delays in contractor payments and call for better governance.

The Karnataka State Contractors Association (KSCA) has accused the current Congress government in Karnataka of doubling the commission required for clearing payments compared to the previous BJP administration. The association claims that contractors have not received their dues for nearly two years, despite assurances from officials. This issue has sparked criticism from R Ashoka, Leader of Opposition in the Karnataka Legislative Assembly, who stated that the association has exposed what he calls a "commission government."

In a letter dated September 25, KSCA highlighted that eight departments responsible for public works have withheld payments. They are releasing only 15-20% of dues every three months under special credit arrangements. The letter, signed by KSCA President R Manjunath and General Secretary G M Ravindra, states, "While in Opposition, you had assured us that once in power, pending contractor payments would be released without any commission. But compared to the previous government, commissions have now doubled in all departments."

Pending Dues and GST Concerns

The KSCA has been urging the Congress government to release pending bills amounting to Rs 32,000 crore. Additionally, they pointed out that extra GST amounts for the years 2017-18 to 2020-21 have not been reimbursed despite repeated requests to the finance department. The association also accused the Department of Mines and Geology of imposing unscientific penalties on contractors' vehicles and charging five times the royalty penalty when MDP Mineral Dispatch Permits are not submitted.

Further allegations include claims that organisations like Karnataka Road Infrastructure Development Limited (KRDCL) are awarding projects to followers of public representatives and party workers. These individuals then subcontract the projects to registered senior contractors after taking a cut. The Urban Development, Town Planning, and Labour Department officials are also accused of converting tenders into package forms to favour influential contractors.

Political Reactions and Allegations

R Ashoka took to social media platform X to express his views on the matter. He stated, "KSCA has finally put in writing what every Kannadiga already knows - corruption has doubled under the Congress government!" He questioned whether Congress leader Rahul Gandhi would address this issue of "daylight commission chori" in Karnataka. Ashoka further alleged that people voted for governance but ended up with a "loot machine" instead.

The KSCA expressed disappointment over their unheeded appeals against corruption, stating that their support has not resulted in any benefits under the current administration. There was no immediate response from the government or the ruling Congress party regarding these allegations.

The 40% commission allegation by KSCA had previously stirred state politics and became a significant campaign point for Congress during the 2023 Assembly elections against BJP. The association's claims continue to fuel political debates as they seek resolution for their grievances.

With inputs from PTI