Major relief to contractors as UDD orders to pay 25% of pending dues 

In a major relief to the contractors working under the Bruhat Bengaluru Mahanagara Palike (BBMP), the State government has decided to pay 25% of the pending dues of the total bill.

The Urban Development Department (UDD) on Monday issued an order directing the BBMP to clear 25% due on all payments that were made till date for works completed. 

It may be recalled that the UDD stopped all the payments as the State government set up the Justice H. N.Nagamohan Das committee to probe allegations of corruption. The order by the Congress government asked the committee to investigate the works carried out between 2021 and 2023.

After the contractors protested, the government in September 2023 issued a new order to release 75% of the pending bills pertaining to works carried out between April 2021 and September 2021. The pending bill amount was released in a phased manner.

Recently, the contractors demanded release of the remaining 25% of the bill. Relenting to the demand, the government finally ordered to pay the dues. On the other hand, the UDD also ordered the BBMP to pay 100% of the bill amount for completed works which were not yet paid. This means for the works completed after September 2021 for which bills are not cleared, the BBMP has to credit 100% of the bill amount.