Small contractors are still waiting for full payments for the works they carried out in 2022 and 2023 and they are seeking a refund of EMD.
Published Jun 26, 2024 | 11:00 AM ⚊ Updated Jun 26, 2024 | 2:33 PM
Small contractors on indefinite hunger strike
The indefinite hunger strike launched by members of Krishnateera Contractors’ Association (KCA) entered the eighth day on Wednesday, 26 June. The strike is against the Congress government over delay in releasing pending dues, returning Earnest Money Deposit (EMD), and not calling tenders for small contractors.
Amidst these allegations, the small contractors also levelled serious allegations against the officials of the Krishna Bhagya Jala Nigam Limited (KBJNL) of not only harassing contractors but also rampant corruption in clearing the bills.
According to these contractors: “KBJNL is yet to clear bills of fully completed works in 2022 and 2023. The pending bills are anywhere between ₹60 to R₹75 crore. EMD amount stands around ₹18 crore. All the pending dues and EMD amount is from small contractors who take work costing less than ₹1 crore.”
As their protest enters eighth day, none of the elected members or ministers concerned have even attempted to listen to the grievances of the contractors.
On the other hand, Karnataka State Contractors’ Association (KSCA) President D Kempanna also levelled serious allegations of surge in corruption and harassment from the officials in all major departments, especially after the new government came to power in May 2023.
Meanwhile, officials at the KBJNL have denied corruption allegations and assured that pending bills will be cleared at the earliest and stressed to bring in more transparency in the office.
Around 150 small contractors are sitting on indefinite hunger strike at Lal Bahadur Water Reservoir in Almatti for the last one week over KBJNL’s delay in releasing pending bills and not issuing work orders for the last one year.
The indefinite hunger strike by the members of KCA has entered the eighth day as small contractors are not ready to withdraw their demonstration until the government assures them in writing that their demands will be fulfilled.
The small contractors are still waiting for the full payments for the works they carried out in 2022 and 2023. They are seeking a refund of EMD, which is estimated to be around ₹18 crore.
KCA President MA Meti told South First: “We have launched the indefinite hunger strike over several burning issues in the KBJNL. The KBJNL is yet to fully clear the pending bills of works carried out in 2022 and 2023.”
“Around 150 to 200 contractors have paid the EMD – money that the contractor has to pay as advances while bidding for tender – for the several tenders that they (KBJNL) called just before the 2023 Karnataka Assembly polls. They halted the tender process as the election code of conduct came into force,” he said.
However, after the elections, neither the work order nor refund was issued. He explained, “After the completion of the election process, neither the government nor department concerned issued work orders and refunded the EMD. It has been over one year. We invest by taking loans from the banks and private lenders.”
“If the government delays in releasing EMD and pending bills, where should we get money to pay interest? If the government does not call tenders for small contractors, then how will these contractors survive?” asked Meti.
He cautioned the government of consequences if there are further delays in releasing pending bills and EMD.
Small contractor Mahantesh Belagal told South First: “The KBJNL is yet to clear my bills of ₹11 lakhs and ₹lakh EMD money. I have been waiting for the last one year but there has been no concrete development in this regard. The KBJNL has paid around 25 percent of the total pending dues for some contractors and few are waiting for their first payment. The KBJNL has not invited any kind of tenders for small contractors in the last one year.”
He further pointed: “The situation of small contractors has become so worse that the private lenders and banks are not coming forward to give fresh loans. Some of the contractors have sold their heavy vehicles to pay interest. This is the situation of contractors.”
Talking about the alleged bribery charges, Belagal said, “When we approach the officials requesting to clear our pending bills, they will not harass us but demand a bribe to clear every file. We have to spend 10 percent of our total budget to the officials just to get our files/bills cleared. If we refuse to pay then they will give petty reasons and delay it further,” alleged Belagal.
Contractors also demanded to move KBJNL office in Bengaluru to Almatti and fix the unscientific norms in the tender.
Contractors working with various departments, particularly under the Krishna Bhagya Jala Nigam Limited (KBJNL), have raised ten major demands aimed at addressing their grievances and improving the transparency and efficiency of the tendering and payment processes.
Their demands encompass a range of issues from billing practices to maintenance systems, all with the goal of ensuring fair treatment and prompt payment.
These ten demands reflect the small contractors’ need for a more transparent, fair, and efficient system that supports their work and ensures timely payment for their services.
While the small contractors are on the streets demanding that the government clear the pending bills, KSCA President D Kempanna has levelled serious allegations of increase in corruption and harassment from officials while clearing bills.
In 2023, Contractor Association President Kempanna had levelled 40 percent commission allegations against the previous BJP government. It turned out to be one of the biggest weapons for the Congress to fight against the incumbent BJP government in the 2023 Karnataka assembly polls.
However, Kempanna is not happy about the functioning of the new government as well where he says there has been an increase in corruption and harassment.
D Kempanna told South First: “The situation of contractors across the state has become much worse after the new government came to power at the helm. The corruption and harassment are rampant under this regime.”
“It appears that the politicians are using officials to draw more commission and harass us. The harassment from the officials is getting worse. The party has changed but the system remains the same. We have not witnessed any major changes aimed at helping contractors,” charged Kempanna.
On whether the government not clearing pending bills, he said: “The same saga is continuing even after this government came to power. The state government is not clearing the pending bills at the earliest. The life of contractors has become worse in recent days. I am not doing great in terms of health. I will take a delegation and meet the Chief Minister and express our community’s concerns,” and added that he is happy about the ongoing investigation on allegations 40 percent commission on previous BJP regime.
With regard to the small contractors protesting at Almatti, he said: “I am aware of this protest. They have not approached us seeking support or help in their fight. If we come forward, we will definitely support them. The contractors are reeling under severe difficulty despite the change in the government.”
On small contractors’ indefinite hunger strike at Almatti Dam, KBJNL MD Mohan Raj KP assured of clearing the pending bills and denied corruption and harassment allegations in his office.
MD Mohan Raj will be holding talks with the contractors at Almatti on Wednesday, 25 June and he is expected to appeal to the contractors to withdraw their protest.
MD Mohan Raj told South First: “I am aware that the contractors are staging a protest. I will be holding talks with them on Wednesday. I have asked them to withdraw their protest, assuring me of looking into their demands. We have cleared bills to certain extent of those who carried out works under ₹10 lakh, ₹50 lakhs, Rs 2 crore and above. We have paid 50 percent of those contractors who have taken up works upto ₹10 crore.”
“We will clear the pending bills as soon as the required budget is sanctioned. We will listen to the grievances and assure them of safeguarding their interests as well,” stated the KBJNL MD.
“I have already directed to release of EMD funds as well. It was delayed due to some technical reasons. We will clear all the pending EMDs at the earliest possible,” MD Mohan Raj replied on delay in refunding the EMD.
Dismissing corruption allegations, he said: “There is no corruption in my office. We are working towards bringing more transparency in the system. We are safeguarding our contractors.”
