Maharashtra contractors threaten statewide stir over pending dues worth over ₹80,000 crore

Amid mounting frustration over non-payment of dues, the Maharashtra State Contractors Association and the State Engineers’ Federation have threatened a statewide protest if the state government fails to release over ₹80,000 crore in pending payments by June 10.

Contractors claim that development work across the state has come to a halt due to a funding freeze that has lasted nearly one and a half years.

Milind Bhosale, President,  Maharashtra State Contractors Association, told CNBC-TV18, “The last proper payment clearance happened in January 2024. After that, since the inception of the Ladki Bahin Scheme, our payments stopped. A very small amount was cleared in March this year, but it didn’t help much.”

According to the association, dues are pending across multiple departments including Public Works (₹38,000 crore), Rural Development (₹6,500 crore), Water Conservation and Water Resources (₹12,000 crore), Urban Development (₹4,217 crore), and others, including District Planning Committees and MLA local development funds.

Around 50% of the pending amount is reportedly from the Public Works Department alone.

The association has moved to the court as well.

Bhosale said, “We have filed a petition against the Rural Development Department in the Bombay High Court. Instead of clearing our dues, the department has started awarding work to the gram panchayats. We have opposed this move in our petition and have asked for clearance of our pending payments. We wrote to the Chief Minister Devendra Fadnavis again a couple of days ago. But still, there is no sign of us getting our money. If our demands are not met by 10th June, we will file another petition, this time against the PWD.”

The association says the payment clearance rate used to be around 40% before the launch of pre-election schemes like Ladki Bahin. Since the scheme began, that rate has dropped to just 10%.

Bhosale stated that the Finance Department and other relevant departments have failed to provide any clarity on when the dues will be paid. Officials have allegedly responded with evasive or dismissive answers.

The associations claim that infrastructure, repair, and maintenance work have been halted across key government locations, including Mantralaya, Raj Bhavan, and in major projects under the Jal Jeevan Mission and the Rural Development Department.

Contractors stopped work on February 5, 2025, citing financial strain. They allege they have written six letters to the Chief Minister and Deputy Chief Ministers since, but with no result.

The Maharashtra Contractors Association represents 300,000 members across all 35 districts. The group now plans to launch a mass awareness campaign and large-scale agitation across the state if the government does not respond by June 10.

“The government has chosen to remain silent, but we will not. If needed, we will take this agitation to every corner of Maharashtra,” Bhosale said.