Builders’ Association Issues Second Legal Notice to Maharashtra Govt Over Rs 90,000 Crore Dues, Threatens Court Action
Pune, 5th July 2025: The Maharashtra chapter of the Builders’ Association of India (BAI) has escalated its battle with the state government over long-pending payments, issuing a second legal notice demanding the release of over ₹90,000 crore owed to contractors. The association has given the government a 15-day deadline, warning that it will approach the Bombay High Court if no action is taken within the stipulated time.
The fresh notice, dated July 2, was dispatched by BAI’s legal counsel and addressed to Chief Minister Devendra Fadnavis, Chief Secretary, Additional Chief Secretary (Home), and senior officials from 26 departments involved in public works and infrastructure projects.
Dues for Completed Projects Still Unpaid
According to BAI, the dues relate to completed construction and infrastructure works across Maharashtra—including roads, bridges, irrigation systems, and various public utility projects undertaken by government departments and local bodies.
In an official statement, BAI said:
“Contractors have fulfilled their responsibilities and submitted bills for completed work. Despite this, payments have not been processed. Many contractors had borrowed heavily to complete state projects and are now facing loan defaults. The financial burden is threatening to push several members into bankruptcy. We are appealing to the government to immediately clear the dues to avoid an economic disaster in the construction sector.”
First Notice Ignored, Legal Pressure Mounts
The association had previously sent an initial legal notice earlier this year but received no formal response. The second notice comes as a reminder and warning, indicating growing frustration within the industry over the government’s inaction.
A senior member of BAI, speaking on condition of anonymity, said:
“It is baffling that the government continues to announce new tenders worth thousands of crores while thousands of contractors are still awaiting payment for work completed months—even years—ago. This is not only financially irresponsible but also ethically questionable.”
Legal Action Likely if Government Remains Silent
The association has made it clear that if the government does not respond positively within 15 days, it will move the Bombay High Court seeking relief.
“We were hopeful that this issue could be resolved amicably through dialogue. However, the state’s continued silence has forced us to explore legal remedies,” a senior BAI representative said. “The construction industry is a critical driver of employment and economic activity. Ignoring our pleas will only worsen the state’s infrastructure and economic challenges.”
Larger Economic Impact
Industry experts warn that the delay in clearing contractor payments could have ripple effects on the wider economy. Several small and mid-sized contractors have already reduced their workforce or suspended operations, affecting daily wage workers, subcontractors, and suppliers.
“The unpaid dues are not just hurting contractors—they are endangering livelihoods across the ecosystem,” said another BAI member. “We are not asking for favors; we are demanding what is rightfully owed.”
The association is seeking immediate disbursal of outstanding bills and a transparent mechanism for timely payment to contractors going forward.
