20 million lives at risk: CAG delivers damning verdict on Delhi’s worsening water crisis

The Comptroller and Auditor General (CAG) of India has delivered a damning verdict on the functioning of the Delhi Jal Board (DJB). Its Performance Audit Report No. 3 of 2025, laid before the Delhi Legislative Assembly on March 23, 2026, paints a picture of chronic mismanagement amid the Capital’s worsening water crisis.

The report is a wake-up call. Delhi’s 20 million residents continue to suffer erratic supply, contaminated water and choked drains while the Yamuna remains severely polluted. Without swift implementation of the CAG’s recommendations, the Capital’s water and sewerage infrastructure risks total collapse.

Spanning seven chapters, the report reveals how shortages, leakages, pollution, financial losses and administrative failures have left millions of Delhiites without reliable drinking water or proper sewerage services.

Chapter 2 of the report highlights the widening gap in raw water availability. Between 2017-18 and 2021-22, the shortage of raw water rose from 22 per cent to 24 per cent, while the shortfall in potable water increased from 24.2 per cent to 25.79 per cent. The primary reasons cited are insufficient raw water sources, inadequate treatment capacity and the board’s failure to augment supply. It may be noted that the Aam Aadmi Party (AAP) was running the government in the national capital in this period.

Shockingly, the absence of flow meters at Water Treatment Plants (WTPs), reservoirs, bore wells and emergency points meant DJB could not accurately measure how much water was being treated, transmitted or supplied. Water quality testing also fell far short of Bureau of Indian Standards (BIS) norms, putting public health at risk. The distribution network fares no better. Transmission losses climbed from 16 per cent to 21 per cent during the audit period. Per capita availability of potable water remained abysmal: four zones received less than 20 gallons per capita per day (GPCD) and eight zones less than 40 GPCD, against the required 60 GPCD.

This inequitable supply has hit poorer colonies hardest. Non-Revenue Water (NRW) water lost to leaks, theft and unmetered supply — hovered between 51 and 53 per cent, resulting in a staggering revenue loss of Rs 4,988 crores.

Audit Alert: CAG Verdict on DJB (2025)

• Status: A “damning verdict” on chronic mismanagement and financial instability.
• Period Audited: Primarily 2017-18 to 2021-22 (under the AAP government).

Water Scarcity & Quality

• Widening Gap: Raw water shortage rose to 24%; potable water shortfall reached 25.79%.
• Abysmal Supply: Residents in some zones received less than 20 GPCD (Gallons Per Capita per Day), far below the required 60 GPCD.
• Health Risk: Water quality testing consistently fell short of BIS norms; a lack of flow meters meant treated water could not be accurately measured.

Financial & Resource Hemorrhage

• Revenue Loss: Rs 4,988 crore lost due to Non-Revenue Water (leaks, theft, and unmetered supply).
• Debt Trap: Outstanding loans and interest reached a staggering Rs 66,595 crore (as of March 2022).
• The “Meter” Crisis: Only 40% of potable water produced was billed; of that, only 66% was based on actual meter readings.