Former Telangana sarpanches burdened by debt as bills remain unpaid
HYDERABAD: Two and a half years after the Congress government took office and promised to clear dues, over 12,000 former Sarpanches say they are drowning in debt and losing patience. When Congress took power in Telangana in late 2023, thousands of former Sarpanches across the state felt hopeful. Many had borrowed at high interest rates to fund government-mandated village projects, cremation grounds, farmers’ platforms, sports grounds, and nature parks, under the previous Bharat Rastra Samithi(BRS) administration. Their bills went unpaid. Now, the relief they were promised has not arrived.
Speaking to HyderabadMail, S Yadaiah Goud, President, Telangana Former Sarpanches Sangam Joint Action Committee(JAC) said, “Some Sarpanches staged protests. Some even went to the extent of committing suicide, unable to bear the burden of their debts”.
Explaining the scale of the crisis, Yadaiah Goud, laid it out in stark terms. The dues owed to former Sarpanches spanning the 2019–2024 tenure amount to Rs 531 crore from the 15th Finance Commission alone, in addition to Rs 370 crore outstanding from the State Finance Commission (SFC) and State Development Funds(SDF). The Central Government recently released Rs 600 crore to the State specifically to clear such pending dues. Not a rupee, Goud says, has reached the former Sarpanches.
The roots of this dispute stretch back to the COVID-19 pandemic years of 2021–22, when the then-BRS state government directed Sarpanches to undertake large-scale village infrastructure works including the construction of Vaikunta Dhamams (crematoriums), Rythu Vedikas (farmers’ platforms), Palle Prakruthi Vanams (village nature parks), and sports grounds under schemes such as the Rs 25-lakh State Development Fund (SDF) and the “Mana Ooru Mana Pranalika(Pani)” programme. Gram Panchayats were also expected to execute works based on per-capita allocations, Rs 630 per resident from the State government and Rs 680 per month from the Centre.
When project costs exceeded available funds, many Sarpanches turned to private moneylenders, often at the high two-rupee interest rate common in rural areas, where interest can quickly exceed the principal. They expected government funds would eventually arrive. Instead, delays increased. After the 2023 change in government, the process froze, with new officials questioning why they should clear dues from works sanctioned under KCR’s administration.
During the election campaign, Chief Minister A. Revanth Reddy promised the Sarpanch community, “If our government comes to power, we will immediately clear your bills and treat you with dignity and respect.” This pledge resonated deeply. Goud estimates that about 9,000 of the 12,769 Sarpanches, many of whom had worked for the BRS party, either switched allegiances or stepped back from BRS activities. Congress’s victory was built, in large part, on that trust.
Despite these assurances, “He promised he would clear the payments. But six months have passed without any action or communication from the government,” said Yadaiah Goud.
Series of protests failed to yield payments
Over the next two years, Sarpanches made repeated attempts to resolve the issue. Early 2024, Three months after the new government formed, JAC leaders met CM Revanth Reddy. He acknowledged the dues and promised a resolution, calling the non-payment unfair. Mid 2024, Six months later, the government remained silent. About 1,800 Sarpanches gathered at Gun Park, Hyderabad, to protest. Minister Seethakka acknowledged the dues but cited lack of funds. Late 2024, After one year, still no payments. Sarpanches held a second protest at Amarajyothi (Martyrs’ Memorial). The government again promised to look into it. In 2025, two years later, Sarpanches laid siege to the Secretariat. Police arrested protesters overnight, suppressed the agitation, and released no funds. In 2026, after Sarpanches tried to protest in front of the CM’s residence, Jubilee Hills police arrested and booked them.
Meanwhile, Yadaiah says the 15th Finance Commission released Rs 600 crore to Telangana. The JAC says Rs 531 crore of that is owed to former Sarpanches.
Allegations of corruption and political bias
In addition to the payment delays, the JAC alleges corruption. Goud says officials in the Finance Commissioner’s office at the Secretariat have demanded percentage cuts of 12–15% in exchange for processing payments, a complaint the JAC has formally lodged with the Anti-Corruption Bureau (ACB). Goud says the complaint has gone nowhere.
Furthermore, there are allegations of political discrimination in distributing Central funds: payments have reportedly reached Gram Panchayats in constituencies favorable to the ruling party, while those in opposition-held areas remain empty-handed.
Meanwhile, the newly elected Sarpanches (2026 batch) and Panchayat Secretaries, who are being asked to absorb the former Sarpanches’ unresolved dues into an already strained system, find themselves caught in the middle. “To these newly elected Sarpanches and Panchayat Secretaries, we appear as adversaries simply because we are demanding the money due to us,” said Yadaiah Goud.
Further Yadaiah Goud added, “The State Government has not released a single rupee to the Gram Panchayats. We have the MB (Measurement Book) records. The works are visible on the ground. We are simply asking to be paid.”
The Telangana Former Sarpanches Sangham JAC has submitted representations to the Governor and the Chief Minister’s office and has lodged a complaint with the ACB. Their core demand is immediate issuance of a Government Order (GO) authorizing payment of all pending dues Rs 370 crore from the SFC and Rs 531 crore from the 15th Finance Commission, without further deductions or conditions.
