Probe ordered into alleged lapses in Chandni Chowk revamp project
According to an initial report, there are allegations of sharp cost escalation, bypassing the cabinet, and illegal approval and diversion of funds by the then minister in charge of PWD.
While the overall spending on the project jumped from the estimated cost of Rs 65.6 crore to Rs 145 crore, mandatory sanctions were not obtained on revised estimates, the department alleged.
The project suffered from "severe deficiencies" in cost estimation, planning and financial control, and overall execution lacked due diligence, resulting in large-scale irregularities and fiscal indiscipline, the initial findings revealed.
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While ordering an internal inquiry by the department, Verma called the project a "textbook case" of "mishandling" public money and said Delhi "deserved better". "The Chandni Chowk redevelopment project stands as a textbook case of how public money can be mishandled when rules are bent and procedures bypassed. In 2019, under the then minister-in-charge, costs spiralled, tenders were ignored and crores were diverted — all without mandatory approvals," the minister said.
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"Under my watch, PWD will not be a playground for irregularities… it will be a fortress of transparency and accountability, where every paisa serves the people, not personal interests," he added.
No immediate reaction was available from AAP.
The first phase of the project, which aimed to restore the grandeur of the Mughal-era marketplace, combining infrastructure upgrades with aesthetic improvements, was inaugurated in Sept 2021.
The 1.3km redeveloped stretch, from Lal Jain Mandir to Fatehpuri, was made pedestrian-friendly and aesthetically revitalised. It was executed by Shahjahanabad Redevelopment Corporation (SRDC), a special-purpose vehicle.
The second phase of the project, which focused on facade restoration and improving architectural consistency, however, remains stalled.
According to the initial findings, Delhi govt sanctioned Rs 99.68 crore for phase I.
However, during the construction, the initial cost of civil and electrical works alone increased from Rs 27.79 crore to Rs 106 crore. "As per the established norms, a revised sanction must be obtained when project costs exceed the approved limits, but PWD continued spending beyond the sanctioned amount of Rs 99.68 crore without obtaining the mandatory revised approval," said an official.
He added, "Instead of submitting a revised preliminary estimate of Rs 145 crore, reflecting the actual scope and cost, the department submitted only an additional estimate of Rs 40.6 crore, which was a deliberate attempt to avoid presenting the complete proposal before the cabinet, which is mandatory for projects exceeding Rs 100 crore."
Officials said the initial findings also pointed towards irregular execution through the same contractor without floating a new tender, and more than Rs 70 crore were spent on "extra items and deviations".
Officials said the initial findings also revealed that Rs 30 crore were diverted from PWD's maintenance head to SRDC without obtaining mandatory concurrence from the finance department. "The engineer-in-chief directly submitted the file to the minister-in-charge, bypassing both the secretary in charge of the department and the concurrence of the finance department, which is a serious breach of rules and regulations," said an official.
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