PWD debars consultant for two years, imposes ₹50L fine over delayed ICU projects in Delhi

PWD has banned a consultancy firm for two years and fined ₹50 lakh for delays and non-compliance in four ICU hospital projects in Delhi.

New Delhi

The project involved new constructions at the first two locations, and expanding ICUs of the operational Bal Chikitsalaya and GTB Hospital. (Archive/Bloomberg)

The Public Works Department (PWD) has debarred a consultancy firm from participating in its tenders for two years and imposed a penalty of ₹50 lakh, citing prolonged delays, non-compliance with contractual obligations and cost escalations in the construction of four ICU hospital projects in the Capital.

In an order earlier this week, PWD said that the firm had failed to deliver requisite drawings, designs and statutory compliance documents for ICU hospital projects at Shalimar Bagh, Kirari, Chacha Nehru Bal Chikitsalaya and Guru Teg Bahadur Hospital. The project involved new constructions at the first two locations, and expanding ICUs of the operational Bal Chikitsalaya and GTB Hospital.

“Long and unexplained delays in submission of critical design deliverables, non-compliance with statutory requirements etc. led to complete standstill in ICU hospital projects… The cost of ICU Hospital at Shalimar Bagh, Chacha Nehru Bal Chikitsalaya and Guru Teg Bahadur has abnormally increased beyond sanctioned cost due to crop up of numerous extra items and huge deviation in agreement items resulting in extra financial burden on the department,” the communique issued by PWD said.

PWD said that repeated reminders over the past two years, the firm failed to provide design calculations, structural model, load calculations and other necessary reports for the structural design of ICU projects.

“...conduct amounted to wilful neglect and virtual abandonment of assigned responsibilities under consultancy contract and delay in submission of coordinated drawings and compliance reports directly affected the construction schedule and caused financial loss to the Government,” the letter read.

A final show cause notice was issued in September 2025, giving the firm seven days to explain why penal recovery and punitive action should not be initiated. However, the department said the replies were “unsatisfactory and evasive” and failed to justify prolonged non-compliance, non-submission of required deliverables and consequential delays in the project.

Officials said that with the projects now stuck midway, a new contractor will be hired to complete the work at the earliest.

The Delhi government recently announced that it has revived four other long-pending hospital projects in the city at Jwalapuri, Madipur, Hastasal and Siraspur, where construction had been underway for over five years.