The Delhi government will conduct a comprehensive audit of the Narela and Bawana industrial areas covering the period from 2011-12 to 2025-26. The move aims to probe irregularities and assess their financial impact.
PPP Model and Audit Scope
Both clusters were developed under a public-private partnership (PPP) model through the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC). The initiative involves redevelopment, operation, and maintenance of industrial infrastructure. DSIIDC has floated tenders to appoint auditors for revenue audits of concessionaires. The audit will scrutinize audited financial statements, statutory and tax audit reports, GST records, and other relevant documents.
Concessionaires and Infrastructure
Under the PPP framework, special purpose vehicles (SPVs) were designated as concessionaires. Their responsibilities include planning, financing, redeveloping, and maintaining infrastructure such as roads, drainage, water supply, waste management systems, parking, horticulture, and street lighting.
Verification and Irregularities
Officials stated that the audit will verify bills raised by concessionaires, revenue realized, payments from escrow accounts, dues, and any excess payments. Auditors will flag irregularities and evaluate their financial impact. An official explained, "The audit has been initiated to independently verify the bills raised by the concessionaires and ascertain whether the claims made by them are supported by records. At present, there is no institutional mechanism available to cross-check these claims in detail. The findings of the audit will help the government determine the accuracy of the bills and take an informed decision on payments and any other issues arising from the review."
Detailed Reconciliation
The scope includes reconciliation of bank statements, escrow accounts, ledgers, unit-wise records, agreements, approvals, and financial statements. The audit aims to detect revenue suppression, fund diversion, leakage, understatement of receipts, unauthorized recoveries, or excess collections.
