‘Sheesh Mahal’ renovation under scrutiny: BJP govt to table CAG findings in Delhi Assembly on Tuesday

The BJP-led Delhi government is preparing to present 14 pending Comptroller and Auditor General of India (CAG) reports on the performance of the previous AAP government in the Delhi Assembly on Tuesday (February 25).

A key CAG finding reportedly raised serious concerns over the renovation of former Chief Minister Arvind Kejriwal's official residence at 6 Flag Staff Road, which the BJP named ‘Sheesh Mahal’. The project, initially sanctioned at a cost of Rs 7.61 crore in 2020, saw its cost escalate to Rs 33.66 crore by April 2022, reflecting a staggering 342 per cent increase, according to sources.

The CAG's audit reportedly highlights multiple irregularities in both the planning and execution of the renovation project.

One of the major concerns raised by the BJP leaders was the inflated cost of the project. The Public Works Department (PWD) had initially prepared a preliminary estimate (PE) of Rs. 7.91 crore for the project, based on the Plinth Area Rates published by the Central Public Works Department.

However, the work was eventually awarded at Rs. 8.62 crore, 13.21 per cent higher than the estimate, say sources. Despite this, the final cost reportedly ballooned to Rs 33.66 crore, well beyond the estimated amount.

The report also sheds light on issues with the tendering and consultancy processes, say sources.

The audit reportedly found that the PWD failed to provide sufficient justification for selecting the three consultancy firms that were chosen for restricted bidding. The consultancy work's cost was based on outdated rates, which were then increased by 50 per cent, according to sources.

Moreover, the selection process for contractors was flagged as arbitrary. Only one of the contractors had the required experience for the job, raising questions about the transparency of the bidding process, say sources.

The CAG also reportedly scrutinised changes made to the scope of the renovation work.

During execution, the built-up area was increased by 36 per cent, from 1,397 sq.m. to 1,905 sq.m.

The report also noted that several items of superior specification, including artistic, antique, and ornamental works, were added to the project.

These additional features contributed to a significant increase in costs. In total, Rs 18.88 crore was spent on executing these high-end items, sources said.

The audit reportedly found that the PWD failed to explore the possibility of tendering for additional work and, instead, continued to award contracts to the existing contractor.

As a result, the final cost escalated further, with some works valued at Rs 25.80 crore being executed without proper approval.

Another major point of contention in the report is the renovations to the Chief Minister’s staff block and camp office. The work, initially estimated at Rs 18.37 crore was awarded at Rs 16.54 crore through restricted tendering.

However, the audit reportedly reveals that funds were diverted from the sanctioned amount for other works.

The staff block was never constructed as per the original plan, and funds were instead used to construct seven servant quarters at a separate location, unrelated to the original work, sources say. The CAG’s report has “raised significant questions about the transparency and financial management of the renovation project”.