Contractors Threaten Gherao of Chief Secretary’s Office as Treasury Freeze Stalls Approved Payments
Call it ‘financial emergency’; allege illegal control over state funds by Finance Department
Mandi/Shimla, June 17:
Tempers are flaring in Himachal Pradesh as contractors across the state have threatened to gherao the Chief Secretary’s office, accusing the Finance Department of illegally freezing the Treasury and withholding approved payments.
They allege that despite budget allocations being cleared for the current financial year, the department is deliberately blocking funds — pushing contractors, suppliers, and development projects to the brink.
“The government’s own approved budget is lying locked in the treasury, but payments are being stalled without any official order.
This is nothing short of a financial emergency,” said Keshav Naik, president of the Contractor Welfare Association, Himachal Pradesh, warning of a statewide economic shutdown if payments aren’t released immediately.
According to Naik, Treasury Officers across districts have received verbal orders not to clear bills, despite departments submitting all required paperwork in time.
He said many contractors are now staring at loan defaults and NPA notices as payments for completed government projects remain stuck for months.
“The Finance Department is no longer a facilitator; it’s behaving like a controller. It has violated the sanctity of the Treasury and undermined the state legislature’s authority,” Naik alleged.
What’s Going Wrong:
Crores of rupees sanctioned in the 2024–25 budget are lying unspent due to an unofficial freeze.
Bills passed by various departments have not been cleared for payment.
Several ongoing and completed public projects are held up due to cash flow disruption.
Contractors, suppliers, and even departmental officers are facing financial uncertainty.
They say this violates the basic principles of fiscal discipline. Under normal circumstances, once the Assembly approves a budget, the Finance Department’s role is to ensure timely release — not to block it unilaterally.
The incident has raised serious concerns about the state’s financial health, with many asking:
Has Himachal Pradesh slipped into a silent financial crisis — one the government refuses to admit?
As the deadlock continues, trade associations, contractor unions, and suppliers are rallying for action.
If the Treasury blockade is not lifted within days, they plan to shut down economic activity across the state and lay siege to the top bureaucratic office.
#TreasuryFreeze #HimachalContractorsProtest #FinanceDepartmentRow
