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The Congress, which built its 2023 assembly election campaign around accusing the BJP of corruption under the Basavaraj Bommai-led regime, is now facing similar allegations
The contractors highlighted delayed payments in a letter to Karnataka CM Siddaramaiah. (Image: PTI/File)
Contractors in Karnataka, who had previously led the “40 percent sarkara” campaign against the BJP, have now accused the ruling Congress of doubling commissions and failing to clear large dues.
This targeting by the Karnataka State Contractors’ Association (KSCA) has sparked a sharp political confrontation in the state, with the BJP taking this opportunity to brand the Siddaramaiah-led administration as “ATM sarkara”.
The Congress, which built its 2023 assembly election campaign around accusing the BJP of corruption under the Basavaraj Bommai-led regime, is now facing similar allegations. The BJP has claimed that the Congress is taking 80 percent commissions, while the contractors highlighted delayed payments in a letter to Chief Minister Siddaramaiah.
On September 25, the KSCA wrote to Siddaramaiah stating that corruption had worsened under the Congress. The letter, signed by association president R Manjunath and general secretary GM Ravindra, alleged that commissions had doubled in at least eight government departments as compared to the BJP’s tenure.
“When you (Siddaramaiah) were the Leader of the Opposition, you said no commission would be asked to clear bills if your party came to power. However, we regret to inform you that commissions have doubled in eight departments,” the letter stated.
Contractors further accused the state government of selectively clearing bills for bribes. The letter alleged that institutions like Nirmithi Kendra and Karnataka Rural Infrastructure Development Ltd (KRIDL) were awarding projects to followers of Congress leaders, who subcontracted them after demanding cuts.
The association, however, issued a second letter on September 26 downplaying its initial allegations and focusing on pending dues, estimated at nearly Rs 32,000 crore across nine departments. It appealed to the chief minister, highlighting the significance of Ugadi and Dasara festivals for contractors and their families.
It noted that successive governments had traditionally released funds for contractors during these festivals. It expressed concern that payments pending for the past three to four years were not cleared during the last Ugadi festival.
The contractors’ body urged the government and the finance department to issue strict and immediate orders to release pending payments ahead of Dussehra. It reminded Siddaramaiah that their campaign against the BJP’s “40 percent sarkara” had weakened the saffron party, helping the Congress return to power.
“Our pending dues have increased to nearly Rs 32,000 crore. We have appealed to the government to release at least 50% of the pending amount during Dasara or Deepavali,” GM Ravindra said, while Manjunath said the “double corruption” remark was made to highlight their situation.
In January, the KSCA warned of protests over delayed bill payments and alleged irregularities in awarding contracts. In a letter to seven ministers, including deputy CM DK Shivakumar and rural development and panchayati raj minister Priyank Kharge, it had demanded immediate intervention.
In March, after several meetings, it backed down from its protest threat following assurances from the state government that 50 percent of their long-pending dues will be cleared starting April. The assurance came during a meeting with Siddaramaiah and Shivakumar.
Manjunath said the government had also promised to resolve issues relating to discrepancies related to goods and services tax (GST) and the Mining Development Plan (MDP).
Earlier in the year, the association had issued a warning in another letter to the CM that unpaid dues of nearly Rs 32,000 crore were causing severe financial distress. It even threatened to involve senior Congress leaders Rahul Gandhi and Mallikarjun Kharge if the government did not act.
It had highlighted an 8 percent GST discrepancy on projects executed between 2017 and 2020, pointing to a high court ruling that held the state responsible for the additional tax burden. It also accused the department of mines and geology of unfairly levying penalties on old bills for missing MDPs, while alleging rising commission demands and corruption under the current administration.
WHAT IS THE BJP SAYING?
The BJP quickly capitalised on the controversy, branding the Congress regime as “ATM sarkara” and accusing it of using government projects for political funding.
The KSCA’s allegations have placed the Congress on the defensive. The first letter gave the BJP ammunition to accuse the ruling party of hypocrisy, benefiting from the contractors’ allegations against the BJP before elections, only to face the same charges after coming to power.
The charges have revived memories of the storm created in 2022, when the Congress accused the previous government of demanding “40 percent commission” on contracts. That accusation became the backbone of the party’s “PayCM” campaign, which portrayed Bommai as corrupt and helped sway public perception in its favour during the 2023 polls.
The contractors have repeatedly complained of delayed bill payments, irregularities in contract awards, and pending GST arrears. Earlier in March, it had even written to Rahul Gandhi and Mallikarjun Kharge seeking intervention. At that time, the government assured them that part of the dues will be settled.
Leader of Opposition R Ashoka questioned if Gandhi will respond to the corruption allegations. State BJP president BY Vijayendra, meanwhile, said: “In reality, the kickback is 80% and not just 40%.”
In April 2022, Santosh Patil, a 40-year-old contractor who had accused senior BJP leader and RDPR minister KS Eshwarappa of harassing him for a 40 percent commission, was found dead in a hotel in Udupi. The BJP attempted to mitigate the damage by removing Eshwarappa from the Bommai cabinet and denying him a ticket in the assembly elections.
Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t…Read More
Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t… Read More
September 29, 2025, 22:33 IST
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