Telangana Finance Secretary Summoned by High Court Over Rs 198 Crore Contractor Payment Delays

The Telangana High Court is taking a tough stance on delayed payments, summoning the Finance Secretary. This is a major step after years of waiting for contractors and suppliers.

The Telangana High Court is escalating its scrutiny of the state government's protracted delays in settling dues with contractors and suppliers, flagging principal secretary (finance) Sandeep Kumar Sultania for repeated non-compliance with court directives and a failure to appear despite summons. The judiciary’s patience appears thin, with the court questioning the survival of agencies tasked with public works and their ability to compensate employees when payments for completed projects, sometimes years old, remain outstanding.

Telangana High Court Pulls Up State Govt Over Delayed Payments to Contractors - 1

This judicial friction points to a systemic issue of delayed payments across various sectors, impacting entities ranging from major construction firms to fish seedling suppliers. The court's interventions are not merely advisory; it has explicitly warned of further action, including the potential summons of senior officials if compliance is not demonstrated. The repeated issuance of notices and the explicit mention of contempt proceedings underscore the seriousness with which the High Court views these delays.

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Financial Secretary Faces Scrutiny

Sandeep Kumar Sultania, the state's principal secretary for finance, has been directly implicated for his non-adherence to prior court orders. The court has directed that he personally appear until payments are settled, a strong indicator of the judiciary's intent to ensure accountability. This emphasis on the finance secretary’s role suggests the court sees budgetary and financial management as a core obstacle to resolving these long-standing payment disputes.

Telangana High Court Pulls Up State Govt Over Delayed Payments to Contractors - 3

Broad-Spectrum Delays

The High Court’s concerns are not confined to a single sector. Instances include:

Telangana High Court Pulls Up State Govt Over Delayed Payments to Contractors - 4
  • Construction Projects: A significant sum of Rs 198 crore is reportedly owed to NCC, a contractor whose projects were completed years ago. The court has expressed dismay at the contractor's plight, highlighting the economic strain caused by the government's delay.

  • Fish Seedling Supply: Multiple suppliers have approached the court, with payments made to only a fraction of them. Despite a court order in February 2025 directing the government to clear these dues, many remain unpaid. The court has rejected justifications like "budget preparation" and insisted on prompt implementation of its orders.

  • Power Dues: The Telangana State Southern Power Distribution Company Limited (TGSPDCL) has faced criticism for its inaction in recovering Rs 118.13 crore in electricity dues from GITAM University. The court has questioned why stringent measures, such as power disconnection, were not initiated against the institution for its nearly two-decade-long default.

Pattern of Non-Compliance

The narrative emerging from these judicial pronouncements is one of repeated delays and a pattern of the government seeking extensions. The court has noted that even after receiving "tokens" for payments, suppliers have faced further year-long waits, indicating a failure in the subsequent processing and disbursement stages. This has led suppliers to initiate contempt proceedings, forcing the court to take a sterner stance and refuse further time extensions.

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Context of Judicial Intervention

These cases unfold against a backdrop where the judiciary is compelled to step in due to alleged administrative inertia or wilful disobedience. The High Court's pronouncements, particularly concerning Sandeep Kumar Sultania, signal a move towards holding individual officials accountable for the state's fiscal inaction. The judicial branch is effectively acting as a mechanism to enforce financial obligations that appear to be neglected at the executive level. The court’s increasing insistence on personal appearances and its refusal to grant easy extensions indicate a significant shift in its engagement with these financial disputes.

Frequently Asked Questions

Q: Why did the Telangana High Court summon the Finance Secretary?
The High Court summoned Principal Secretary (Finance) Sandeep Kumar Sultania because the state government has repeatedly delayed payments to contractors and suppliers, and has not followed previous court orders.
Q: How much money is owed to contractor NCC?
The state owes Rs 198 crore to NCC for construction projects that were finished years ago. The court is concerned about the long wait for this payment.
Q: Are fish seedling suppliers also affected by payment delays?
Yes, many fish seedling suppliers have not been paid despite a court order in February 2025. The court rejected the government's excuses and wants these payments made quickly.
Q: What is the court's warning about future actions?
The court has warned that if payments are not made and compliance is not shown, more senior officials might be summoned. They are considering contempt proceedings against those responsible for the delays.
Q: Why is the court looking into power dues for GITAM University?
The High Court questioned why the Telangana State Southern Power Distribution Company Limited has not recovered Rs 118.13 crore in electricity dues from GITAM University, which has been in default for almost 20 years.