CAG slams INR 33.66 crore renovation of Kejriwal’s bungalow

Flagging irregularities in the renovation of the Chief Minister Arvind Kejriwal’s official bungalow, 6 flag staff, the Comptroller and Auditor General of India (CAG) on Monday slammed the Public Works Department (PWD), saying the cost increased from Preliminary Estimates (PE) of INR 7.91 crore to INR 33.66 crore.

Notably, the work was declared urgent by the PWD. The refurbishment of the bungalow was a major issue in the Delhi Assembly polls, which dented Kejriwal’s image and paved the way for the BJP Government after 27 years in Delhi.

The CAG report, tabled in the Delhi Assembly by the chief minister, Rekha Gupta, on Monday, stated that the PWD prepared Preliminary Estimates (PE) of INR 7.91 crore by adopting the Plinth Area Rates, published by the Central Public Works Department for Type VII and VIII accommodation/bungalows. The work was declared urgent by the PWD. The said work, although awarded at INR 8.62 crore, being 13.21 per cent above the estimated cost, was finally completed at INR 33.66 crore, being 342.31 per cent above the estimated cost.

Audit noted that in respect of the award of the consultancy work, PWD did not make available to Audit the basis for selecting three consultancy firms for restricted bidding. Besides, while working out the justification cost, PWD adopted one-year-old rates of consultancy work and enhanced it by 50 per cent.

During the execution of work, PWD again resorted to restricted tendering and selected five contractors for bidding on the basis of their financial status, resourcefulness and experience in executing similar works in VIP areas. Audit, however, observed that only one contractor, to whom the work was awarded, had the requisite experience, indicating that the selection of bidders for restricted tendering was arbitrary.

Audit observed that during execution, PWD increased the built-up area from 1,397 sqm to 1,905 sqm (36 per cent) and also altered the applicable specifications of the work by executing several items of superior specifications, artistic and antique items, ornamental works (both Civil and Electrical/Services). To cover the cost, PWD had to revise the PEs four times.

Besides, PWD also did not explore the possibility of tendering for additional AA&ES and works amounting to INR 25.80 crore (2nd to 5th PE) were executed by the existing contractor. Audit noted that INR 18.88 crore was incurred by PWD in the execution of items of superior specification, artistic, antique and ornamental items which were executed by PWD as extra items. Moreover, AA&ES for the 5th PE amounting to INR 9.34 crore was issued more than two months after completion of the work, thus creating a liability without any approval.

According to CAG, the second work of additions/alterations in the Staff Block/Camp Office was awarded at INR 16.54 crore against the estimated cost of INR 18.37 crore. The said work was also awarded through restricted tendering. The reasons for resorting to restricted tendering could not be ascertained, as the related records were not made available to Audit. Audit noted that, out of INR 19.87 crore sanctioned for the construction of the Staff Block and Camp Office, funds were diverted for other works.

Besides, the Staff Block was not constructed out of the funds; seven servant quarters were constructed at another location, not related to the original work. Besides, the nature of the Camp Office was altered from Permanent to Semi-Permanent Structure (SPS), rendering the AA&ES and the estimates totally unrelated to the actual work executed. Ultimately, only the raw structure of the Camp Office was completed as the funds for the same were exhausted, and foreclosure of the work was initiated by PWD in June 2023.

Audit of the “renovation”, which started in 2020, also lists the appliances and amenities acquired for the CM’s residence — an 88-inch OLED TV (8K LG) purchased for INR 28.9 lakh, 10 other OLED TVs (4K Sony) for the household at INR 43.9 lakh, a Samsung ‘flex family hub French multi-door’ refrigerator for INR 3.2 lakh, a microwave oven for INR 1.8 lakh, two steam ovens for INR 6.5 lakh, a front-loading automatic washing machine for INR 1.9 lakh, and 10 beds and sofas for INR 13 lakh, among others. The Public Works Department (PWD) also installed a jacuzzi, sauna and spa for INR 19.5 lakh. An additional amount of INR 19.8 crore was spent on the construction of seven servant quarters.