₹25 crore funds lapse in J&K, Contractors allege substandard works, delayed payments
Srinagar, March 30, KNT: Around ₹25 crore allocated to the Jammu and Kashmir Housing Board has lapsed due to non-utilization, raising concerns over financial management and fund utilization within government departments, officials and stakeholders said.
The lapse comes at a time when several departments are witnessing a similar trend of unspent allocations being returned to treasuries, pointing to gaps between budgetary provisions and on-ground execution.
Meanwhile, the Central Contractors Coordination Committee (JKCCCC) announced a six-point programme to highlight long-pending issues faced by contractors across the Union Territory.
The committee said it will launch an outreach campaign in the Pir Panjal and Chenab regions to engage stakeholders and press for resolution of key concerns.
General Secretary Farooq Ahmad Dar said the growing trend of awarding tenders below approved rates was affecting construction quality and financial viability.
“Awarding works below approved rates can compromise quality and lead to losses for the public exchequer,” Dar said.
He alleged that collusion between certain engineers and a section of contractors was contributing to substandard work and irregularities in project execution.
Highlighting financial stress within the contractor community, Dar said payments amounting to nearly ₹785 crore have remained pending for over a decade despite repeated representations to successive governments.
“Contractors are facing serious financial distress due to prolonged non-payment,” he said.
He also pointed to inefficiencies in treasury operations, saying delays in processing challans were hampering project execution and leading to loss of productive time.
The committee has demanded that challans be accepted at the divisional level instead of treasuries to streamline procedures and reduce delays.
It also raised concerns over what it described as restrictive tender conditions, alleging that such practices were enabling participation of non-local companies despite the availability of adequate expertise among local contractors.
Dar said these issues will form the core agenda of the outreach programme in Pir Panjal and Chenab, where the committee will seek wider consultation and push for administrative intervention.
He urged the administration led by Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah to take steps to address the concerns.
The simultaneous lapse of funds and accumulation of unpaid liabilities has raised broader questions about planning, execution and accountability in Jammu and Kashmir’s development framework. [KNT]
