Maharashtra contractors claim ₹89,000 crore unpaid dues: Here's why
What's the story
Maharashtra's government has been accused by its own contractors and engineers of owing them a whopping ₹89,000 crore in unpaid dues.
The Maharashtra State Contractors Association and the State Engineers Association have alleged that payments have been pending since the introduction of pre-election schemes like the Ladki Bahin scheme.
Contradicting the government's claims about its financial health post this year's budget, contractors disagree.
Payment concerns
Contractors claim payments are delayed from various departments
Contractors say the government's financial position doesn't represent the reality of increasing dues and stalled development projects.
Payments are reportedly due from several departments, including the Public Works Department (PWD), Rural Development, Jal Jeevan Mission, and others.
According to them, over half of the total dues, about ₹46,000 crore, is owed by the PWD alone.
Work stoppage
Work halted due to lack of response from government
Milind Bhosale, President of the Maharashtra State Contractors Association, said they had tried several times to raise the matter with Deputy CM Eknath Shinde and others, but to no avail.
Frustrated with the silence, they stopped work on February 5.
Even after sitting with PWD Minister Shivendra Raje Bhosale on February 18, they have yet to receive their payments.
Payment woes
Delay in payments worsened after launch of schemes
Bhosale added that the delay in payments isn't new, but has gotten worse since the launch of the Ladki Bahin and other pre-election schemes from July 2024.
He said that before these initiatives, pending payments were about 40%, which was difficult but manageable. However, payments are down to barely 10% currently.
This has resulted in work stoppages on several projects, including infrastructure projects, repair and maintenance at Mantralaya and Raj Bhavan.
Legal action
Contractors plan legal action over unpaid dues
Bhosale has complained of the government's refusal to talk to them, saying they would approach court.
"Our workers are suffering. Some of us are paying minimal amounts to keep them afloat, but without payments from the government, how long can we continue this?" he said.
The Maharashtra State Contractors Association claims three lakh contractors as members across 35 districts in Maharashtra.
Each reportedly employs 200-300 workers on average.