Contractors in Maharashtra to Take Legal Action Over Unpaid Government Dues
Maharashtra, contractors are intensifying their protests against the state government’s failure to settle outstanding dues amounting to nearly Rs 1 lakh crore. The Builders Association of India (BAI) and the Maharashtra State Contractors Association (MSCA) have now threatened to pursue legal action as a last resort after months of non-payment for work already completed.
On Monday, both associations, along with other key groups like the Hot Mix Association, held a joint meeting where they announced plans to escalate their ongoing protest. Contractors have been demanding that the state clear the substantial dues owed for various public infrastructure projects, but despite several requests, the government has yet to take action.
Anil Sonawane, State Chairman of the Builders Association of India, expressed deep frustration over the situation. “We have no choice but to seek legal remedy, as the government has been unresponsive to our repeated requests,” Sonawane said. “The debts are mounting, and many of us have taken loans from banks to fund these projects. It has become increasingly difficult to survive without receiving payments.” The situation has reached a critical point, as contractors say they are unable to pay the salaries of the workers employed on these projects, adding further strain to an already struggling industry. Construction and infrastructure, which contribute significantly to Maharashtra’s economy, employ millions of workers, making this non-payment crisis even more severe for the state’s labour force.
Contractors across Maharashtra began an indefinite protest last week, halting work on government contracts in 35 districts due to the unpaid dues. These projects primarily involve the state Public Works Department (PWD), the Rural Development Department, and the Jan Jeevan Mission. Despite a firm ultimatum to the state government, contractors say no meetings or negotiations have been scheduled to address the issue. The cumulative dues of nearly Rs 1 lakh crore, spread across various state government departments, have been pending for months. Contractors claim that the state government has failed to make payments for work completed since July 2023. This non-payment has led to further resentment among contractors, especially when the government continues to fund new initiatives like the Ladki Bahin programme while disregarding long-overdue bills for completed projects.
Contractors and engineers have voiced concern that the government is prioritising newer schemes while ignoring the financial strain faced by those already working on government projects. The MSCA and the State Engineers Association (SEA) have now demanded that the government not issue any fresh contracts unless there are sufficient budgetary provisions to ensure timely payments. The ongoing crisis has placed the state’s construction sector under immense pressure. Maharashtra’s infrastructure development is vital to its overall economic health, and with contractors unable to continue their work, public projects are at risk of significant delays. For many contractors, the issue is more than just financial—it’s a matter of survival. Many businesses are struggling to stay afloat due to the backlog of payments, while workers on the ground are increasingly uncertain about their livelihoods. As contractors prepare to take legal action, they are hoping for a swift resolution before the protests cause even more disruption.
The situation highlights broader issues within Maharashtra’s construction sector, where delayed payments for public works have become a recurring problem. As legal action looms, contractors are urging the state government to take immediate steps to resolve the issue, providing some relief to an industry facing mounting pressure. With no resolution in sight, the situation remains tense. Contractors are preparing to escalate their protests further, leaving the state government with little room to manoeuvre. Legal action may become the next step, but the hope remains that the government will address the issue before it reaches that point, ensuring that the necessary payments are made to keep critical infrastructure projects on track. The outcome of this ongoing dispute will have significant implications not just for contractors, but for the entire infrastructure and construction sector in Maharashtra.
