21 April 2025 : Maharashtra’s contractors are set to drag the state government to the Bombay High Court over the issue of “non-payment of bills worth Rs 89,000 crore for infrastructure works in the state”. The representative body of contractors has announced to file petitions before the HC benches in Mumbai, Nagpur and Chhatrapati Sambhajinagar.
“At a time when our pending payout from the government is around Rs 89,000 crore, the state government is merely releasing Rs 4,000 crore. The Maharashtra State Contractors Association and the State Engineers Association held a state-level meeting in Thane and took a decision to drag the government to court,” said Miling Bhosle, state president of the contractors’ association. The meeting was held in Thane on Friday.
Both associations have been demanding their dues from the government since last year. In February, they wrote a letter to top leaders in the state, warning to stop all ongoing infrastructure works as payments worth Rs 89,000 crore from different departments have allegedly not been paid since July 2024. Despite stopping works in a phased manner across the state, the contractors have not yet been paid.
The “Rs 89,000 crore dues” of the contractors include Rs 46,000 crore from the state Public Works Department (PWD), Rs 18,000 crore from the Jal Jeevan Mission under Water Supply and Sanitation department, Rs 8,600 crore from the Rural Development department, Rs 19,700 crore from the Irrigation department and Rs 1,700 crore for works done under DPDC, MLA fund and MP fund.
Miling Bhosle said the Rs 4,000 crore released in March was merely 5 per cent of the total dues and it was impossible for contractors to continue with the works on such small amounts. “As a result, if the bill amount is not paid, no contractor will be able to work. This will definitely result in developmental works coming to a standstill in the state,” Bhosle said.
He added that not a single minister, including the chief minister, is ready to talk about this.
State PWD Minister Shivendraraje Bhosle in February had said he had sought Rs 10,000 crore to be released at the earliest for contractors who were then on strike for a week over pending dues.
“I have spoken to the chief minister and finance minister. Both are positive regarding the demands raised by contractors. The government is positive about our demand of Rs 10,000 crore to be released at the earliest. It will help paying dues of the contractors,”
Milind Bhosle said that despite assurances, only Rs 1,500 crore has been released by the PWD in the previous fiscal. “Only Rs 4,000 crore from all departments have been released. The government has no money and despite our meetings with the CM and the ministers, we have got nothing but assurances,” he said.
Summary:
Maharashtra contractors plan to approach the Bombay High Court over ₹89,000 crore in unpaid bills for infrastructure projects, citing minimal government payments.