MUMBAI: The Builders Association of India (BAI) and the Maharashtra State Contractor’s Association (MSCA) on Monday said contractors will take legal action for the non-payment of govt dues of close to Rs 1 lakh crore.
The BAI and MSCA announced that they will step up their ongoing protest for the recovery of the dues. BAI, MSCA, and the Hot Mix Association, among others, jointly announced on Monday to intensify the protest by stopping work on govt contracts at a joint meeting.
Anil Sonawane, State Chairman of BAI, said the contractors have been considering legal action for the non-payment of bills. “We will be left with no option but to seek legal remedy as there is no response from the govt despite several requests. It has become difficult for the contractors to survive amid the mounting debts and loans taken from banks for the projects they are working on. Infrastructure and construction are key sectors with immense contributions to the state GDP. They employ lakhs of people, and paying their salaries on time has also become difficult for us,” Sonawane said.
Last week, state govt contractors and engineers began their indefinite stop-work protest over unpaid dues of close to Rs 1 lakh crore across 35 districts in the state. Contractors said despite the ultimatum, there was no response from the state govt, and no one has called them for any meeting or talks. The maximum projects through these contractors and engineers are ongoing in the state Public Works Department (PWD), Rural Development Department, and Jan Jeevan Mission. Contractors and engineers have said the govt is only providing funds for schemes like Ladki Bahin but not paying contractors.Claiming that bills of around Rs 1 lakh crore are pending across various state govt departments, contractors from all over the state gave the Mahayuti govt an ultimatum of February 5 and threatened to stop work after that if dues are not paid. The MSCA and State Engineers Association (SEA), in a letter to the govt, stated that the govt hasn’t cleared pending bills of contractors and must not award fresh contracts unless there is enough budgetary provision. They claimed that no payments have been made since July 2023.
