Delhi's ‘Sheesh Mahal’ costs rose by over 300%, says 2022 CAG report

The report has been cited by BJP, cited sharp cost escalations, procedural lapses and missing records.

The renovation and construction of former Delhi chief minister Arvind Kejriwal’s official residence at 6, Flagstaff Road exceeded preliminary estimates by more than 300%, according to a Comptroller and Auditor General (CAG) audit report dated March 31, 2022, tabled in the Delhi Legislative Assembly on Monday.

The former residence of Delhi ex-chief minister Arvind Kejriwal in Civil Lines. (HT File)

The report, has been cited by the Bharatiya Janata Party (BJP), which has dubbed the residence as “Sheesh Mahal” in the past, cited sharp cost escalations, procedural lapses and missing records. The audit found that the Public Works Department (PWD) initially prepared a preliminary estimate of ₹7.91 crore for additions and alterations. The work was awarded at ₹8.62 crore, but final expenditure rose sharply to ₹33.66 crore – more than four times the initial estimate.

The CAG report also flagged irregularities in the selection of consultants and contractors. “PWD did not make available to audit the basis for selecting three consultancy firms for restricted bidding… PWD again resorted to restricted tendering and selected five contractors… Only one of the selected contractors met the required experience criteria, raising questions over the selection process,” it said.

The report further said PWD did not invite fresh tenders for additional works worth ₹25.8 crore; instead, it assigned them to the existing contractor. It added that ₹18.88 crore was spent on superior specification and ornamental items executed as extra items.

“AA&ES (administrative approval and expenditure sanction) for 5th preliminary estimate amounting to ₹9.34 crore was issued more than two months after completion of the work, thus creating a liability without any approval,” the report said, indicating post-facto approvals.

Irregularities were also found in the second component involving a staff block and camp office. Though ₹19.87 crore was sanctioned, the intended structure was not completed, and funds were diverted to construct seven servant quarters at another location. Procedural lapses included failure to obtain building plan approvals before tendering. The audit noted proposals were sent to the building committee after the tender was invited, and the structure was erected without sanctioned plans. Revised approvals from the Delhi Urban Art Commission (DUAC) were also not found on record.

The report highlighted documentation gaps, stating complete records were not provided despite repeated reminders. “The audit could draw neither assurance regarding the planning activity nor about the correctness and genuineness of work executed,” it said.

The BJP on Monday cited the findings to allege large-scale irregularities in the project.

“In the last ten years, the Kejriwal government built nothing in the name of development except Kejriwal’s own “Sheesh Mahal. We have always highlighted how they took advantage of the COVID years to continue construction,” said Delhi BJP president Virendra Sachdeva.

The Aam Aadmi Party (AAP) responded that the house remains the chief minister’s official residence and termed the allegations “baseless,” adding that claims stand “completely exposed” after AAP leaders were “discharged” in the excise case.