Karnataka's public works minister Satish Jarkiholi acknowledged the persistence of commissions or kickbacks in the state's governance, as contractors warn of a financial crisis over unpaid dues of ₹37,370 crore. The Karnataka State Contractors Association has announced a statewide protest on March 6, which could disrupt infrastructure projects.
Karnataka's public works minister Satish Jarkiholi addressed questions on allegations of commission-taking in the department during a press conference on Friday, candidly acknowledging the practice's persistence. He stated, “That’s there. It was there before. It’s there now. It will be there in future. It’s difficult to trace where exactly it happens. Allegations keep coming from different sides. It existed earlier, it exists today, and it may exist tomorrow as well. But it has to be controlled. We must put an end to it.”
The remarks sparked controversy, especially since the ruling Indian National Congress had campaigned against corruption in the previous administration, accusing it of a “40% commission” system in public works. Leader of Opposition in the state assembly R Ashoka accused the ruling party of hypocrisy, saying the minister's comments amounted to an admission of wrongdoing. Ashoka alleged, “He has admitted this because he is also corrupt. Corruption has been there since independence and its foundation was laid by the Congress. This is a shame for the Congress government. The minister has openly accepted that the party is corrupt.”
The controversy adds to escalating tensions between the government and contractors, who claim unpaid bills dating back up to three years have pushed many firms into severe financial distress. According to the Karnataka State Contractors Association, the largest share of pending payments—₹13,000 crore—is owed by the major irrigation department, followed by ₹8,000 crore from the public works department. Other amounts include ₹3,800 crore from the rural development and panchayat raj department, ₹3,000 crore from the minor irrigation department, ₹2,600 crore from the housing and wakf department, ₹2,000 crore each from the urban development and labour departments, and an additional ₹1,600 crore from the Bruhat Bengaluru Mahanagara Palike.
R Manjunath, president of the association, said, “Our memoranda have not received a satisfactory response, and the financial condition of contractors is very poor due to non-payment of bills. Therefore, staging a protest has become inevitable. If the bills are not cleared, all the works would be stopped indefinitely from April.” The association has urged Chief Minister Siddaramaiah to convene an official meeting and announce a timeline for clearing the dues, warning that inaction could halt infrastructure projects statewide.”