198 civil items and 40 electrical items amounting to Rs 18.88 crore, like modular kitchen of Rs 68.76 lakh, sheer curtains of Rs 95.9 lakh etc were executed as extra items, without any recordable reasons.
The Comptroller and Auditor General (CAG) report into the expenditure on the Delhi Chief Minister’s residence has been accessed by CNN-News18 and it reveals that Rs 33.66 crore was spent on the project, which was 342 per cent more than the estimated cost of the project. Various irregularities at all stages of the project have been flagged in the CAG report, which is still to be tabled in the Delhi assembly and is hence not public yet.
Prime Minister Narendra Modi has criticised the Aam Aadmi Party (AAP) government over this, saying the Sheeshmahal (CMs residence) was an epitome of corruption, and this issue is expected to now become a major election plank for the Bharatiya Janata Party (BJP) in Delhi. “This work was awarded at tendered cost of Rs 8.62 crore which was 13.21 per cent above the estimated cost of Rs 7.61 crore. The work was completed in April 2022 and final payment of Rs 33.66 crore was made to the contractor. This work awarded at 13.21 per cent above the estimated cost was finally completed at 342.31 per cent above the estimated cost and 290.49 per cent above the tendered amount,” the CAG report says.
The BJP has alleged that the CAG Report that has the audit of PWD expenditure only till March 31, 2022, is just the tip of the iceberg. “Far more was spent by Kejriwal on his Sheeshmahal, till at least the middle of 2023. Even in the CAG Report, it’s clearly mentioned that it was not provided with full information. The inventory made recently by PWD after Kejriwal vacated Sheeshmahal, in itself has materials and luxury goods worth crores. Besides, the gold plated toilet seats and wash basins have been removed by Kejriwal before he vacated the house. The total cost is as much as Rs 75-80 crores,” BJP leader Amit Malviya said.
The report says Rs 46 lakh extra was spent on installing marble stone on the walls of the CM’s residence while Rs 47 lakh extra was spent on smart LED lights, and a host of luxury items like modular kitchens, large LED screen televisions, refrigerators, sauna, and jacuzzi were installed.
CAG report details
The report says that the Minister, PWD, Delhi government, on 17.03.2020 proposed for remodeling of existing accommodation at ground floor and construction of an additional storey at 6, Flag Staff Road – the CM’s residence. The PWD Superintending Engineer on 27.07.2020 recommended fresh construction within the premises after demolition of the existing structure. The proposal was approved same day by PWD Minister, Pr. Secretary PWD, Engineer in Chief and Principal Chief Engineer,” the report says.
The selection of the consultant was also marred with irregularity. “The spot quotation from three consultants was collected and the consultancy work was awarded to a consultancy firm within one day of receiving quotations. The basis and justification of shortlisting/identification of only three consultants was not made available to the audit,” the report says.
CAG also says that there was a repeated revision of preliminary estimates for the project. “There was lack of clarity regarding submission of Preliminary Estimates by the selected consultant which put the subsequent work on unreliable foundation, without justification for payment to the consultant. During execution, PWD increased the built up area from 1,397 sq.m to 1,905 sq.m (36 per cent), without any justification, highlighting poor planning of the work and increasing the overall cost. The applicable specifications of the work were altered in execution of items of superior specifications, artistic and antique items, ornamental works (both Civil and Electrical/Services). For covering the cost, PWD had to revise the PEs four times,” the report says.
The CAG also says that the planning stage was fraught with doubtful selection of consultants, frequent revision of estimates, inclusion of higher specification which were already covered earlier, increasing the scope of work without proper justification etc, which led to an increase of cost of work.
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The tendering process was also not done using the open tender process, depriving the government of competitive rates for the works amounting to Rs 25.80 crore, the CAG report says.
The report also says that there was variation in the quantity executed vis-a-vis agreement quantity in respect to several civil and electrical items. “Out of total agreement items, quantities amounting to Rs 4.3 crore, Rs 1.02 crore and Rs 1 crore were executed in excess, not executed and less executed than the estimated quantities respectively. 21 agreement items amounting to Rs 1.42 crore were substituted with material of superior specifications which resulted in extra expenditure. Further, out of the items of superior specifications, artistic and antique items, ornamental work, etc. included in the additional PEs, 198 Civil items and 40 electrical items amounting to Rs 18.88 crore, Rs 17.3 cr for items relating to modular kitchen of Rs 68.76 lakh, sheer curtains of Rs 95.9 lakh etc were executed as extra items beyond the limit of PAR, without any recordable reasons,” the report has listed out.
The report also says that there was provision for construction of Staff Block area (705 sq m) and Camp Office area (510 sq m) inside the residential complex, and the work was awarded at tendered cost of Rs 16.54 crore. “As per records made available to audit, there is no mention of Staff Block constructed whereas the work of Camp Office was stopped in the middle of construction,” the report said.
The report also says that PWD used incorrect rates of work i.e. non-residential building instead of residential building resulting in inflated estimates.
