Renovation work at former Delhi CM Arvind Kejriwal’s then official residence (6, Flagstaff Road) was completed with Rs 33.6 crore, 342 per cent above the estimated cost, said a CAG report tabled in the assembly on Monday (March 23). The audit noted that while the preliminary estimate for the project stood at Rs 7.91 crore, the final cost shot up to Rs 33.66 crore. It also pointed to arbitrary increases in consultancy charges by 50%, inflating costs by about Rs 11.77 lakh.
Additionally, a separate provision of Rs 1 crore was made for “superior interior and its consultancy” despite such expenses being included in the original estimate.
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The CAG further observed that no feasibility study was conducted before demolishing the old bungalow and proceeding with fresh construction. It flagged that 198 civil and 40 electrical extra items of superior and ornamental specifications were executed beyond prescribed norms, leading to an additional expenditure of Rs 18.88 crore. The built-up area was also increased by 36% without a recorded justification.
Tendering Irregularities and Fund Diversion Highlighted
The audit also raised concerns over irregular tendering practices, stating that restricted bidding was adopted for the main work under the pretext of urgency and VIP status. Of the five contractors invited, only one had relevant experience, making the selection process arbitrary.
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For additional works worth Rs 25.80 crore, no fresh or open e-tendering was conducted, and all work was awarded to the same contractor, effectively eliminating competitive pricing. The report also noted that 21 agreement items worth Rs 1.42 crore were replaced with higher-specification materials, further increasing costs.
Separately, the CAG flagged diversion of funds from a Rs 19.87 crore allocation meant for a staff block and camp office. The staff block was not constructed, and part of the funds was instead used to build seven servant quarters at a different location, unrelated to the original project.
(With Inputs from Kritika Tiwari)
