Maharashtra Contractors Demand Rs 89000 Crore in Pending Payments, Threaten to Move Bombay High Court

Maharashtra contractors are facing a severe financial crisis as they await payments worth a staggering Rs 89,000 crore from the state government. The dues are owed by various government departments for infrastructure projects that have been either completed or are ongoing. In a bold move, contractors are now planning to approach the Bombay High Court to seek legal intervention.

Unpaid Dues from Various Government Departments

The breakdown of the Rs 89,000 crore pending payments is as follows:

• Public Works Department (PWD): Rs 46,000 crore
• Water Supply and Sanitation Department: Rs 18,000 crore (primarily for the Jal Jeevan Mission projects)
• Rural Development Department: Rs 8,600 crore
• Irrigation Department: Rs 19,700 crore
• District Planning and Development Council (DPDC), MLA and MP funds: Rs 1,700 crore

These dues are a result of various developmental works undertaken by contractors, including critical infrastructure and water supply projects.

Contractors’ Union Announces Legal Action

In a meeting held in Thane, Maharashtra, the Maharashtra State Contractors Association and the State Engineers Association decided to take legal action against the state government. According to Miling Bhosle, the state president of the contractors’ association, the government has so far released a mere Rs 4,000 crore in March, which amounts to just five percent of the total outstanding dues. Contractors have expressed that this partial payment is insufficient to continue work on ongoing projects.

Bhosle emphasized, “At a time when our pending dues amount to Rs 89,000 crore, the government’s meager payment of Rs 4,000 crore is not enough. We are left with no option but to drag the government to court. If the dues are not cleared, developmental works in Maharashtra will come to a halt.”

Demand for Full Payment or Project Halt

The contractors’ union has been urging the state government for over a year to settle the outstanding payments. Earlier in February, they wrote formal letters to top state leaders warning of a halt in all ongoing projects unless the payments were made in full. The latest decision to file petitions in multiple benches of the Bombay High Court—Mumbai, Nagpur, and Chhatrapati Sambhajinagar—is a last-ditch effort to ensure that the contractors are paid in full.

“Without the full payment, no contractor will be able to continue working on any project. This could lead to the suspension of all development work in the state, which will have far-reaching consequences,” Bhosle added.

The Impact on Maharashtra’s Infrastructure

The delay in payments has not only caused financial distress among contractors but has also begun to impact the progress of various important infrastructure projects across Maharashtra. These projects, which include roads, water supply systems, rural development initiatives, and irrigation schemes, are vital for the state’s overall development. The contractors’ inability to continue work on these projects due to financial strain could significantly affect the state’s growth and infrastructure development.

Will the State Government Address the Issue?

As the contractors prepare to move forward with their legal action, all eyes are on the Maharashtra government. The state will need to take swift action to resolve the payment dispute and ensure that projects continue without any further disruptions. The resolution of this issue is crucial for maintaining the state’s developmental momentum and safeguarding the interests of all stakeholders involved.

Conclusion

Maharashtra’s contractors are at a critical juncture, with their livelihoods and the state’s infrastructure development hanging in the balance. The state government must act swiftly to clear the pending dues, or risk bringing key projects to a standstill. As the contractors prepare to move the Bombay High Court, the government’s response will determine the future of Maharashtra’s infrastructure and economic growth.

Stay tuned for updates as the situation develops.