Had you mentioned the various answers actually you gave, we could have understood why the GM-HR was not satisfied and why he simply smiled away when you asked him personally later.
From your narration, the management was not able to start the work due to certain issues though the hiring of the contractors was finalised. Probably when the work was about to be started, the contractors can not mobilise the labor as they refused to work because of the non-payment of wages pertaining to the past 3 months. As the dues were not for your work, naturally the management would not provide any monetary help to the contractors.
Therefore, the only option available before the management is to cancel the contracts and look for other contractors.
employer also breach contract, or he will try to pay half salary or suppose give some monetary help to contract employees.
but in this no work situation , contractor bear all cost for his workers
The alleged delay in the commencement of the fresh contract works due to "some issues " and the strike attempt of the entire contract labor on the ground of non-payment of wages for 3 months confirm that they have been contract labor in the same establishment through some other contractors and there is change of contractors only and not the contract labor. "The some issues" mentioned may be the abrupt exit of the previous contractors due to the failure of the PE to pay their bills culminating in the strike of the CL soon after the engagement of new contractors. The solution, therefore, rests with the PE only both statutorily and ethically by immediately paying the unpaid wages and resolve all other issues,if any.
Perhaps the continued silence of the poster of the thread indicates that he failed to elicit certain vital information leading to the question from the interviewer. In my opinion, there is no harm in politely seeking further information by the interviewee when tricky questions are asked in an interview. Such appropriate questions from an interviewee would indicate his ability to understand the perspective of the question and enliven the very course of the interview for the main objective of any interview is to ascertain exactly what the candidate knows and not otherwise.