CAG Audit Uncovers Massive Cost Overrun in Ex-Delhi CM's Home Renovation
A Comptroller and Auditor General (CAG) report, tabled in the Delhi assembly on Monday, has revealed shocking details about the renovation of former Chief Minister Arvind Kejriwal's official residence. The project, completed at 6, Flagstaff Road, incurred a final cost of Rs 33.6 crore, which is a staggering 342% above the initial estimated budget.
Luxury Spending and Procedural Lapses Highlighted
The report, presented by CM Rekha Gupta, detailed that out of the total expenditure, Rs 18.8 crore was allocated for "superior specifications, artistic, antique and ornamental" items. This bungalow served as Kejriwal's residence during his tenure as CM from 2015 to 2024. Following allegations of corruption, the BJP dubbed the property "Sheesh Mahal," using it as a key issue in the February 2025 elections that ultimately ousted the AAP from power in Delhi after a decade.
Key findings from the audit include:
- The Public Works Department (PWD) employed restricted tendering at multiple stages without proper justification.
- In consultancy services, three firms were invited for bidding without a clear selection basis.
- Cost calculations used one-year-old rates, inflated by 50%, leading to higher estimates.
- Contractor selection was arbitrary, with only one out of five shortlisted contractors meeting the stated criteria of financial capacity and experience in VIP area works.
Scope Changes and Financial Irregularities
The renovation scope expanded significantly during execution. The built-up area increased from 1,397 square meters to 1,905 square meters, a 36% rise. Numerous items of superior specifications and ornamental works were added without recorded justification, accounting for the Rs 18.8 crore extra cost.
To accommodate these changes, preliminary estimates were revised four times. Work worth Rs 25.8 crore under subsequent estimates was executed through the existing contractor without fresh tendering, limiting competitive pricing. In one instance, approval for a fifth revised estimate of Rs 9.3 crore was issued over two months after work completion, creating liabilities without prior authorization.
Additional Project Mismanagement
A second project for the Staff Block and Camp Office was awarded at Rs 16.5 crore against an estimated Rs 18.4 crore, also using restricted tendering without documented reasons. Funds from the Rs 19.8 crore sanctioned for this project were diverted: the Staff Block was never constructed, while seven servant quarters were built at an unrelated location.
Furthermore, the Camp Office was changed from a permanent to a semi-permanent structure, making original approvals inconsistent. Only the raw structure was completed before funds were exhausted, leading to foreclosure in June 2023.
This report underscores serious governance and financial management issues, raising questions about transparency and accountability in public projects.
