Karnataka's Urban Development Department orders BBMP to pay 25% of bills on random basis

Bengaluru: Disregarding the convention of paying contractors on seniority basis, the Urban Development Department (UDD) instructed the BBMP to settle 25 per cent of pending bills through a random process.

The order issued to this effect, which goes against last year’s Finance Department directive, is poised to create controversy as it can reward dishonest contractors and officials, paving the way for corruption.

The UDD's order, dated December 1, specifies that the Bruhat Bengaluru Mahanagara Palike (BBMP) is to clear 75 per cent of the total bills based on a general seniority basis. However, for the remaining 25 per cent of bills, particularly for projects such as grade separators, white-topping, lakes, arterial and sub-arterial roads, stormwater drains, and solid waste management, the UDD has granted officers discretionary powers to bypass the standard seniority queue.

The directive applies to the Rs 3,000 crore allocated to the BBMP in the state budget for 2023-24, with Rs 650 crore already being disbursed to the Palike last month and will be distributed in accordance with the UDD's order.

This decision contradicts two existing orders, one from the Finance Department in May of the previous year, mandating adherence to the seniority list when clearing contractor bills, and the second from the Public Works Department (PWD) code (paragraphs 202-10), which prescribes the first-come, first-served formula based on principles of natural justice.

Besides, the Karnataka State Contractors' Association and the Bruhat Bengaluru Mahanagara Palike Contractors' Association also urged the civic body to follow seniority in bill clearance.

A month later, BBMP Chief Commissioner Tushar Girinath urged the UDD for suitable orders, citing these letters dated September 2023.

KT Manjunath, president of the BBMP Contractors' Association, expressed concerns that the breach of seniority would lead to various problems, including favouritism and undue advantage to larger contractors.

"So far, contractors could seek exemption from seniority only in case of health or other emergencies. That too, only a maximum of Rs 25 lakh had been given. The government should withdraw the order on breaking the seniority principle," he said.