Development works launched by the Mysore City Corporation (MCC) in Mysuru have come to a halt with the contractors staying away from participating in tenders invited by the MCC, which reportedly owes about Rs 96.80 crore to them since January 2012.
“We are not taking part in tenders called by the MCC as we are unable to mobilise funds for new works as the MCC has not cleared our pending bills since January 2012 to August 2014. This has hit major development works taken up by the MCC,” said MCC Contractors’ Association President Chandrashekaraiah.
Speaking to The Hindu , Mr. Chandrashekaraiah said the association had recently requested Chief Minister Siddaramaiah to direct the MCC to clear their bills.
“We cannot take up any fresh works until our bills are cleared. The contractors have been paying interest to the tune of lakhs of rupees to the banks for the funds availed under the overdraft facility,” he said.
He said the banks and financial institutions were not giving fresh loans to the contractors for non-payment of the previous loans.
