Legal action is being initiated by contractor associations in Maharashtra against the state government over long-pending payments estimated at ₹89,000 crore. The Maharashtra State Contractors Association and the State Engineers Association have decided to file petitions before the benches of the Bombay High Court in Mumbai, Nagpur, and Chhatrapati Sambhajinagar, following repeated delays in settlement of bills for infrastructure projects executed across the state.
The decision to move court was taken during a state-level meeting conducted in Thane, where frustration was expressed over the state’s failure to disburse the promised amounts. It was conveyed that despite continued demands and multiple representations made to senior government officials, only ₹4,000 crore—roughly 5% of the total dues—has been released so far. As a result, financial strain is being reported by several contractors, many of whom have already begun withdrawing from ongoing works.
Since July 2024, infrastructure work across various departments has been affected, with contractors suspending operations in a phased manner. Appeals had been submitted to state leadership as early as February 2025, with a warning that work stoppages would intensify if dues were not paid. However, these warnings were allegedly not acted upon, forcing the associations to pursue legal remedies.
The pending amount is said to span across multiple departments: ₹46,000 crore from the Public Works Department (PWD), ₹18,000 crore from the Jal Jeevan Mission under the Water Supply and Sanitation Department, ₹8,600 crore from the Rural Development Department, ₹19,700 crore from the Irrigation Department, and ₹1,700 crore from various local development funds such as DPDC, MLA and MP funds.
It was stated by association president Milind Bhosle that the continuation of developmental works had become increasingly untenable in the absence of payments. He had also observed that no direct communication had been received from any ministers, including the chief minister, regarding resolution of the issue. As per the association, even meetings held with senior officials had resulted only in assurances, with no substantial outcomes.
In February, Public Works Department Minister Shivendraraje Bhosle had acknowledged the issue and mentioned that a request had been submitted for ₹10,000 crore to be released urgently. He had further stated that support had been extended by both the chief minister and the finance minister. However, contractors have reported that only ₹1,500 crore was released by the PWD in the previous financial year, and overall disbursal remained critically low.
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