Maharashtra Contractors Warn of Statewide Work Halt Over ₹96,400 Crore Dues
Mumbai: In a major warning to the Maharashtra government, industry bodies representing contractors and engineers have threatened to halt all development works across the state from April 7 if pending payments are not cleared.
In a joint letter addressed to Chief Minister Devendra Fadnavis and Deputy Chief Ministers Sunetra Pawar and Eknath Shinde, the associations alleged outstanding dues of ₹96,400 crore.
The letter, sent by the Maharashtra State Contractors Federation, State Engineers Association, and Maharashtra State Water Supply Contractors Association, raised concerns over the state’s financial condition and delays in clearing payments.
“The new government took office in November 2024. While the budget made several promises, the state treasury is effectively empty. During the last fiscal year, many development works were not sanctioned, and even approved projects have suffered due to financial constraints,” the letter stated.
The associations claimed that dues have reduced only marginally over the past 17 months, alleging that just ₹20,000 crore has been paid to nearly three lakh contractors and developers during this period.
They also pointed to a slowdown in new infrastructure projects, stating that local self-government bodies and municipal corporations have not initiated fresh works due to lack of funds.
Milind Bhosle, president of the contractors’ federation, said repeated attempts to engage with the government had failed. “Despite seeking time from the Chief Minister and both Deputy Chief Ministers on multiple occasions, we have only received assurances of meetings, but none have taken place,” he said.
The decision to issue the ultimatum was formalised during a state-level meeting of contractors held in Karjat on March 9, 2026.
Bhosle further alleged that contractors had hoped for fund releases in March, but the delay has pushed the sector into a severe financial crisis. He warned that nearly four crore people dependent on the construction and development sector could be affected if work comes to a standstill.
Government officials have not yet responded to the ultimatum issued by the contractors.
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