VIJAYAWADA: The Andhra Pradesh High Court has ruled that withholding payments to contractors solely because a Vigilance and Enforcement (V&E) inquiry report is pending is not legally justified. The court observed that if the inquiry later establishes irregularities in the execution of works, the government is free to recover the amounts already paid in accordance with law. Justice K Srinivasa Reddy directed the authorities to clear the pending bills of contractors who completed development works under the Pulivendula Area Development Authority (PADA) in YSR Kadapa district.
The projects included construction of cement concrete roads, compound walls for cremation grounds, modernisation of veterinary hospitals and construction of community buildings. The court ordered that bills up to Rs 25 lakh be paid within four weeks, while bills exceeding Rs 25 lakh should be cleared within eight weeks.
Several civil contractors from YSR Kadapa district had approached the High Court in 2024 and 2025 after alleging that payments for development works executed during the previous YSRCP government’s had been withheld despite completion of the projects and verifications. The V&E department informed the court that it was investigating alleged irregularities in PADA works but had never recommended withholding contractors’ payments until the inquiry was completed.
