BENGALURU/CHITRADURGA: Days after Karnataka chief minister Siddaramaiah’s economic adviser, Basavaraj Rayareddi, caused a flutter by claiming the state was “No 1 in corruption” before retracting the statement, the Congress govt has faced further embarrassment.
The Karnataka State Contractors’ Association has now alleged growing interference by middlemen in govt departments, accusing the administration of favouring big influential contractors while sidelining small and medium ones.
In a letter addressed to Siddaramaiah, his deputy DK Shivakumar, public works minister Satish Jarkiholi, and minor irrigation minister NS Boseraju, association president R Manjunath and general secretary GM Ravindra have demanded an official meeting to discuss the crisis. “In the last 3-4 months, middlemen are spoiling the system,” the association said in its representation to the CM.

Manjunath told TOI pending dues to contractors have crossed Rs 32,000 crore. “Govt should maintain the seniority list to clear pending bills. However, there are middlemen – described as ‘invisible hands’ – in each dept, and they help some influential contractors, doing injustice to the small and medium-level contractors.”
The association alleged that while departments like PWD, four irrigation corporations, and minor irrigation continue to withhold payments ranging from Rs 5 lakh to Rs 50 lakh, special letters of credit (LoCs) are being selectively used to benefit contractors with political backing. These LOCs, intended for emergencies such as health issues or family events, are reportedly being misused.
Contractors working with BBMP in Bengaluru have also alleged that bribe-demanding middlemen influence bill clearances in the city, favouring those with deeper pockets.
At a press conference in Chitradurga, Manjunath claimed interference by ministers’ relatives and aides in department functioning. “While relatives of ministers have gained undue influence across departments, ministerial interference has increased in recent months. The ministers establish proper payment schedules, but intermediaries alter these arrangements to facilitate selective disbursement.”
Despite raising these issues in a meeting with DK Shivakumar on Dec 3, Manjunath said their concerns remain unresolved. “Substantial amounts of Rs 100-150 crore are being allocated to influential parties, while smaller contractors face neglect,” he said, adding, “The water resources department suspended payments while, in minor irrigation, minister Boseraj’s son’s involvement raised concerns regarding grants and payments.”