NEW DELHI: A Comptroller and Auditor General of India audit has flagged major cost overruns, irregular tendering and fund diversion in the renovation of former Delhi CM Arvind Kejriwal’s official residence at 6, Flagstaff Road, with the project cost ballooning over four times the original estimate.According to the report tabled in the assembly, the work was initially awarded at Rs 8.6 crore but was completed at around Rs 33.6–Rs 33.7 crore — a steep escalation driven by repeated revisions and additions during execution.
A significant portion of the expenditure — nearly Rs 18.8–Rs 18.9 crore — went into extra items beyond approved limits, including high-end specifications, artistic features, antique elements and ornamental works. The audit noted that the built-up area itself was expanded by 36%, from 1,397 sq m to 1,905 sq m, reflecting a major change in project scope.The CAG also raised red flags over the tendering process. Restricted bidding was adopted at multiple stages without adequate justification, and no clear basis was recorded for selecting three consultancy firms. In addition, consultancy costs were inflated by 50% using outdated rate benchmarks.Contractor selection too came under scrutiny. While five firms were shortlisted for the work, only one was found to meet the prescribed eligibility criteria. Despite this, large portions of the project — including works worth Rs 25.8 crore — were executed through the same contractor under revised estimates without inviting fresh bids, limiting competitive pricing.The audit further pointed to financial and execution lapses in a related project involving the staff block and camp office. Though Rs 19.8 crore was sanctioned, funds were diverted to other works. The staff block was never constructed, and servant quarters were instead built at a different location.Meanwhile, the camp office was downgraded from a permanent to a semi-permanent structure and left incomplete after funds were exhausted. Only the basic structure was completed before the project was eventually foreclosed in June 2023.In another instance of procedural lapse, a revised estimate of Rs 9.3 crore was approved more than two months after the work had already been completed, effectively creating liabilities without prior sanction.The issue had earlier triggered political controversy, with the BJP branding the residence as “Sheesh Mahal” ahead of the 2025 Delhi Assembly elections.Reacting to the report, the Aam Aadmi Party dismissed the findings as politically motivated, stating that multiple probes over the past three years had failed to establish any wrongdoing and that the property remains an official residence.
