CH NEWS BENGALURU The Karnataka State Contractors’ Association has demanded the immediate release of around Rs 38,000 crore in pending dues owed to contractors by various development departments. In a letter to Chief Minister D.K. Shivakumar, the association expressed dissatisfaction over the delay in clearing bills despite assurances given to contractors. It recalled that Shivakumar, while serving as Deputy Chief Minister, had assured contractors that the government would stand by them and release pending payments in a single instalment. The association said Shivakumar met its office-bearers on June 30, 2026, after becoming Chief Minister and assured them that their dues would be cleared within two months. He had also reportedly said the Finance Department had been asked to make the necessary arrangements. The association claimed that approximately Rs 38,000 crore remained pending with various development departments, with dues accumulating since 2021-22. It alleged that, except the Public Works Department and Greater Bengaluru Authority, other departments were not maintaining transparency in tendering and payment processes. It urged the government to maintain seniority while releasing payments and sought a halt to the issuance of Special Letters of Credit. It also demanded the release of the eight per cent VAT-GST difference pertaining to 2017-18 and 2018-19. The association sought withdrawal of the order requiring work details to be uploaded on the Contract Management Module of the e-procurement platform before treasury payments are released. It also sought priority for local contractors in district and taluk-level tenders and opposed preference to contractors from other districts and States. The association said small and medium contractors had faced difficulties in securing works since the Covid-19 period and sought measures to facilitate licence renewals and continuation of ongoing works.