The Delhi government is likely to initiate an inquiry into the Chandni Chowk Redevelopment Project after internal findings pointed out alleged "financial irregularities" and cost overruns, officials said on Friday.
The 1.3-kilometre stretch redeveloped, inaugurated in 2021 by former Chief Minister Arvind Kejriwal, saw its project cost swell from an initial estimate of Rs 65.6 crore to Rs 145 crore.
According to documents reviewed by officials, the initial cost for civil and electrical works -- estimated at Rs 27.79 crore -- escalated nearly fourfold to Rs 105.93 crore.
"As per established norms, revised sanction must be obtained when project costs exceed approved limits. But PWD continued spending beyond the sanctioned Rs 99.68 crore without obtaining the mandatory revised approval," officials said.
To avoid cabinet scrutiny, PWD is alleged to have submitted only an additional preliminary estimate of Rs 40 crore, rather than a revised estimate of Rs 145 crore as required for projects exceeding Rs 100 crore, added.
As per the PWD's internal report, "it has also been found that the project was executed through the same contractor without issuing fresh tenders, a direct violation of procurement norms".
The report further reveals that over Rs 70 crore -- of the total Rs 145.72 crore spent -- was used for extra items and deviations not part of the original scope. In total, irregularities concerning deviations and unapproved expenditures amounted to more than Rs 370 crore across various components of the project.
Another significant violation involved the diversion of Rs 30 crore from the PWD maintenance head to the Shahjahanabad Redevelopment Corporation (SRDC) without mandatory concurrence from the finance department.
"Then engineer-in-chief directly submitted the file to the minister-in-charge, bypassing both the secretary in charge and the finance department -- a serious breach of rules and regulations," an official said.
These lapses point to deep-rooted deficiencies in planning, estimation, and financial control.The project is being described by officials as a case study in fiscal mismanagement.
"The Chandni Chowk Redevelopment Project stands as a textbook case of how public money can be mishandled when rules are bent and procedures bypassed. In 2019, under the then Minister-in-Charge, costs spiralled, tenders were ignored, and crores were diverted -- all without mandatory approvals. Delhi deserves better," PWD minister Parvesh Verma said.
"Under my watch, PWD will not be a playground for irregularities but a fortress of transparency and accountability, where every paisa serves the people -- not personal interests," Verma added.
Responding to the allegations, AAP said in statement, "The people of Delhi know very well that for the last 10 years, vigilance and the ACB were under the BJP's LG, and it was the LG's duty to ensure that corrupt officers were punished. It was the BJP's LG who was appointing officers to various positions. Opening enquiries into old cases only shows the incompetence of their LG."
The 1.3-kilometre stretch redeveloped, inaugurated in 2021 by former Chief Minister Arvind Kejriwal, saw its project cost swell from an initial estimate of Rs 65.6 crore to Rs 145 crore.
According to documents reviewed by officials, the initial cost for civil and electrical works -- estimated at Rs 27.79 crore -- escalated nearly fourfold to Rs 105.93 crore.
"As per established norms, revised sanction must be obtained when project costs exceed approved limits. But PWD continued spending beyond the sanctioned Rs 99.68 crore without obtaining the mandatory revised approval," officials said.
To avoid cabinet scrutiny, PWD is alleged to have submitted only an additional preliminary estimate of Rs 40 crore, rather than a revised estimate of Rs 145 crore as required for projects exceeding Rs 100 crore, added.
As per the PWD's internal report, "it has also been found that the project was executed through the same contractor without issuing fresh tenders, a direct violation of procurement norms".
The report further reveals that over Rs 70 crore -- of the total Rs 145.72 crore spent -- was used for extra items and deviations not part of the original scope. In total, irregularities concerning deviations and unapproved expenditures amounted to more than Rs 370 crore across various components of the project.
Another significant violation involved the diversion of Rs 30 crore from the PWD maintenance head to the Shahjahanabad Redevelopment Corporation (SRDC) without mandatory concurrence from the finance department.
"Then engineer-in-chief directly submitted the file to the minister-in-charge, bypassing both the secretary in charge and the finance department -- a serious breach of rules and regulations," an official said.
These lapses point to deep-rooted deficiencies in planning, estimation, and financial control.The project is being described by officials as a case study in fiscal mismanagement.
"The Chandni Chowk Redevelopment Project stands as a textbook case of how public money can be mishandled when rules are bent and procedures bypassed. In 2019, under the then Minister-in-Charge, costs spiralled, tenders were ignored, and crores were diverted -- all without mandatory approvals. Delhi deserves better," PWD minister Parvesh Verma said.
"Under my watch, PWD will not be a playground for irregularities but a fortress of transparency and accountability, where every paisa serves the people -- not personal interests," Verma added.
Responding to the allegations, AAP said in statement, "The people of Delhi know very well that for the last 10 years, vigilance and the ACB were under the BJP's LG, and it was the LG's duty to ensure that corrupt officers were punished. It was the BJP's LG who was appointing officers to various positions. Opening enquiries into old cases only shows the incompetence of their LG."
