Government contractors across Maharashtra are facing a severe financial crisis due to long-pending payments for completed public works, coupled with serious allegations of bribery in the payment clearance process. Despite finishing projects assigned by various state departments, contractors claim that their bills have remained unpaid for nearly 18 months.
According to estimates shared by contractor associations, the total outstanding amount owed by the Maharashtra government has reached approximately INR 74,000 crore. This includes dues under major departments such as the Jal Jeevan Mission, Public Works Department, Rural Development, Tourism, and several other wings of the state administration. Contractors say that all required work has been completed, verified, and approved, yet payments have not been released.
Adding to their distress are allegations that government officials are demanding bribes to process and clear these pending bills. Contractors allege that corruption begins even before work is awarded, with commissions of around 10 percent allegedly being demanded through intermediaries to secure contracts. After projects are completed, further bribes are reportedly sought to move files, obtain approvals, and release payments. Contractors claim that without paying these illegal demands, bills are deliberately delayed or kept pending at district and departmental levels.
The prolonged delay in payments has had devastating consequences for contractors, many of whom have borrowed heavily from banks and private lenders to complete government projects on time. Mounting interest, stalled cash flow, and the inability to repay loans have pushed several contractors into insolvency. Contractor bodies allege that the financial pressure has become so extreme that some contractors have died by suicide, unable to cope with the burden caused by unpaid government dues.
In response to these issues, the State Contractors Federation has announced plans to file formal complaints with the Anti-Corruption Bureau and the Lokayukta. The federation has stated that it will submit written representations containing details and names of officials allegedly involved in bribery, along with supporting documents. Contractors hope that intervention by these agencies will lead to accountability and help expedite the release of pending payments.
Contractors have also pointed to systemic issues in the payment mechanism. Government payments are now routed through the Centralised Network Processing system based in Hyderabad, which contractors say has become a major bottleneck. Even after departmental approvals, payments are reportedly delayed due to technical issues, procedural hurdles, and a shortage of funds. The situation has worsened since the enforcement of the model code of conduct during recent elections, which further slowed the release of funds. Contractors claim that while new work approvals continue to be issued, there is no allocation available to clear old bills.
Contractor associations warn that unless the government urgently releases pending payments and addresses corruption within the system, the construction sector in Maharashtra could face a complete breakdown. They argue that continued delays not only harm contractors but also disrupt public infrastructure projects, employment, and overall economic activity in the state.
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