Latest news with #ChandniChowkRedevelopmentProject
Hindustan Times
5 days ago
- Business
- Hindustan Times
PWD red-flags massive spike inChandni Chowk revamp costs
The Public Works Department (PWD) has discovered large-scale irregularities in the Chandni Chowk redevelopment plan, according to an inter-departmental report, which highlighted lapses such as an apparent two-fold increase in cost, bypassed approvals, diverted funds, and lapses in planning and execution. The Chandni Chowk redevelopment, intended to restore the Mughal-era market's heritage charm and improve pedestrian access, was launched in 2019. (HT Archive) According to an internal report submitted to the PWD minister Parvesh Verma, the project's cost — originally approved at ₹65.6 crore — rose to a whopping ₹145.72 crore when the project was completed in 2019. For now, the minister-in-charge is likely to review the report and decide on possible action to be taken, which could include a formal probe into the approvals process, tendering, and fund diversion. Officials said this expenditure was allowed without any fresh budgetary sanction or cabinet approval. Notably, all projects above ₹100 crore must be cleared by the cabinet. The report, also seen by HT, showed that the initial civil and electrical works were pegged at ₹27.79 crore but eventually surged to ₹105.93 crore. For this, additional work was assigned to the same contractor under the existing contract, as against inviting fresh tenders for additional works, officials alleged. 'Out of the total project expenditure, over ₹70 crore was spent on 'extra items and deviations', far exceeding the sanctioned scope… The project suffered from severe deficiencies in cost estimation, planning, and financial control… Overall execution lacked due diligence and led to fiscal indiscipline,' the report mentioned. Further, the department had only submitted a preliminary estimate (PE) of ₹40.6 crore as against the revised estimate of ₹145 crore, the report showed, terming it a 'deliberate attempt to avoid presenting the full proposal before the cabinet.' 'This bypass not only undermined governance oversight, but also set a precedent for ignoring established financial procedures,' the report added. Moreover, the inquiry flagged an instance where ₹30 crore was diverted from the PWD maintenance head to the Shahjahanabad Redevelopment Corporation (SRDC) without the mandatory concurrence from the finance department. 'In this case, the engineer-in-chief directly submitted the file to the minister-in-charge, bypassing both the departmental secretary and the finance department. This is a serious breach of rules and regulations and an outright violation of financial discipline,' a PWD official said. The report also points to 'continued spending beyond sanctioned limits' as a recurring pattern, with additional works awarded without competitive bidding, no fresh tenders invited and payments made in violation of financial transparency and procurement norms. '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. Delhi deserves better. Under my watch, PWD will not be a playground for irregularities but a fortress of transparency and accountability, where every paisa serves the people, not personal interests,' PWD minister Verma said. To recall, the Delhi government was led by the Aam Aadmi Party (AAP) government in 2019 when the project was undertaken. The AAP said this was a false case and that opening older enquiries only shows the incompetence of the lieutenant governor (LG). 'The BJP government knows that they won this Assembly elections through cheating and voter list manipulation. They are scared that the people of Delhi now want the AAP government back. Therefore, out of desperation, the BJP wants to file hundreds of false cases against AAP leaders. This is being done to dissuade AAP leaders from asking questions to the government. It was the BJP's LG who was appointing officers to various positions. Opening enquiries into old cases only shows the incompetence of their LG,' the statement added. The Chandni Chowk redevelopment, intended to restore the Mughal-era market's heritage charm and improve pedestrian access, was launched in 2019. The plan included street revamp of the area, creating a pedestrian friendly environment with distinctive character of Chandni Chowk, integrated plan for all the services and creating a heritage environment along the stretch of Chandni Chowk from Lal Jain Mandir to Fatehpuri Masjid.
Economic Times
5 days ago
- Business
- Economic Times
Delhi govt to probe financial irregularities in Chandni Chowk redevelopment project
Synopsis The Delhi government is set to investigate the Chandni Chowk Redevelopment Project due to alleged financial irregularities and significant cost overruns, escalating from Rs 65.6 crore to Rs 145 crore. Officials found deviations from procurement norms, unapproved expenditures exceeding Rs 70 crore, and the diversion of Rs 30 crore without proper financial concurrence. TNN The Delhi government is likely to initiate an inquiry into the Chandni Chowk Redevelopment Project after internal findings pointed out alleged "financial irregularities" and cost overruns, officials said on Friday. The 1.3-kilometre stretch redeveloped, inaugurated in 2021 by former Chief Minister Arvind Kejriwal, saw its project cost swell from an initial estimate of Rs 65.6 crore to Rs 145 crore. According to documents reviewed by officials, the initial cost for civil and electrical works -- estimated at Rs 27.79 crore -- escalated nearly fourfold to Rs 105.93 crore. "As per established norms, revised sanction must be obtained when project costs exceed approved limits. But PWD continued spending beyond the sanctioned Rs 99.68 crore without obtaining the mandatory revised approval," officials said. To avoid cabinet scrutiny, PWD is alleged to have submitted only an additional preliminary estimate of Rs 40 crore, rather than a revised estimate of Rs 145 crore as required for projects exceeding Rs 100 crore, added. As per the PWD's internal report, "it has also been found that the project was executed through the same contractor without issuing fresh tenders, a direct violation of procurement norms". The report further reveals that over Rs 70 crore -- of the total Rs 145.72 crore spent -- was used for extra items and deviations not part of the original scope. In total, irregularities concerning deviations and unapproved expenditures amounted to more than Rs 370 crore across various components of the project. Another significant violation involved the diversion of Rs 30 crore from the PWD maintenance head to the Shahjahanabad Redevelopment Corporation (SRDC) without mandatory concurrence from the finance department. "Then engineer-in-chief directly submitted the file to the minister-in-charge, bypassing both the secretary in charge and the finance department -- a serious breach of rules and regulations," an official said. These lapses point to deep-rooted deficiencies in planning, estimation, and financial project is being described by officials as a case study in fiscal mismanagement. "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. Delhi deserves better," PWD minister Parvesh Verma said. "Under my watch, PWD will not be a playground for irregularities but a fortress of transparency and accountability, where every paisa serves the people -- not personal interests," Verma added. Responding to the allegations, AAP said in statement, "The people of Delhi know very well that for the last 10 years, vigilance and the ACB were under the BJP's LG, and it was the LG's duty to ensure that corrupt officers were punished. It was the BJP's LG who was appointing officers to various positions. Opening enquiries into old cases only shows the incompetence of their LG."
Time of India
5 days ago
- Business
- Time of India
Delhi govt to probe financial irregularities in Chandni Chowk redevelopment project
The Delhi government is likely to initiate an inquiry into the Chandni Chowk Redevelopment Project after internal findings pointed out alleged " financial irregularities " and cost overruns , officials said on Friday. The 1.3-kilometre stretch redeveloped, inaugurated in 2021 by former Chief Minister Arvind Kejriwal, saw its project cost swell from an initial estimate of Rs 65.6 crore to Rs 145 crore. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program According to documents reviewed by officials, the initial cost for civil and electrical works -- estimated at Rs 27.79 crore -- escalated nearly fourfold to Rs 105.93 crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo "As per established norms, revised sanction must be obtained when project costs exceed approved limits. But PWD continued spending beyond the sanctioned Rs 99.68 crore without obtaining the mandatory revised approval," officials said. To avoid cabinet scrutiny, PWD is alleged to have submitted only an additional preliminary estimate of Rs 40 crore, rather than a revised estimate of Rs 145 crore as required for projects exceeding Rs 100 crore, added. Live Events As per the PWD's internal report, "it has also been found that the project was executed through the same contractor without issuing fresh tenders, a direct violation of procurement norms". The report further reveals that over Rs 70 crore -- of the total Rs 145.72 crore spent -- was used for extra items and deviations not part of the original scope. In total, irregularities concerning deviations and unapproved expenditures amounted to more than Rs 370 crore across various components of the project. Another significant violation involved the diversion of Rs 30 crore from the PWD maintenance head to the Shahjahanabad Redevelopment Corporation (SRDC) without mandatory concurrence from the finance department. "Then engineer-in-chief directly submitted the file to the minister-in-charge, bypassing both the secretary in charge and the finance department -- a serious breach of rules and regulations," an official said. These lapses point to deep-rooted deficiencies in planning, estimation, and financial project is being described by officials as a case study in fiscal mismanagement. "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. Delhi deserves better," PWD minister Parvesh Verma said. "Under my watch, PWD will not be a playground for irregularities but a fortress of transparency and accountability, where every paisa serves the people -- not personal interests," Verma added. Responding to the allegations, AAP said in statement, "The people of Delhi know very well that for the last 10 years, vigilance and the ACB were under the BJP's LG, and it was the LG's duty to ensure that corrupt officers were punished. It was the BJP's LG who was appointing officers to various positions. Opening enquiries into old cases only shows the incompetence of their LG."
The Hindu
23-05-2025
- Politics
- The Hindu
After HC rap, Delhi govt to scrap panel for Chandni Chowk maintenance
The Delhi government on Thursday informed the Delhi High Court that it would scrap a committee formed for the redevelopment of Chandni Chowk, admitting that officials had misinterpreted an earlier court order. The court rapped the authorities for unilaterally forming a high-level committee to oversee Chandni Chowk's maintenance, stating that it had only sought their suggestions during earlier hearing. 'We wanted you (Delhi government) to give your suggestions and instead you formed the committee and now you are taking the plea that you misread the order. We only intended to form the committee just to ensure that the work functions under our supervision,' the court said. The government counsel said the panel would be immediately scrapped. The court accepted the counsel's submission on recalling of the March 26 government order. The court then ordered the parties to file their suggestions within four weeks on the setting up of the high-level committee in pursuance to its February order. In its February 18 order, the court proposed a committee comprising officers at the highest level of all the agencies and other experts to ensure the area was maintained appropriately. The court had also proposed the terms of reference to such a committee should be preparing a road map for maintaining and preserving the area and other ancillary issues. The court, however, learnt that on March 26 the Delhi government's Public Works Department had formed a high level committee. Expressing its astonishment, the court's May 21 order noted the respondents were only required to give its suggestions in respect of the formation of the committee and not for forming the committee itself. 'You have created an authority (Shahjanabad Redevelopment Corporation) and you sanction a hefty amount but the court had to intervene time and again because whatever zeal or effort you were making that is not yielding the desired results. Every time the matter comes up before the court, you show your zeal on paper by filing affidavits,' the court said. The government's counsel said the area was beautified as photographs would indicate but pointed out an 'extremely high footfall'. There were miscreants who were destroying public property and authorities were doing the work on a daily basis, the counsel added. The court was dealing with a plea of Chandni Chowk Sarv Vyapar Mandal which claimed a 'highly neglected, disturbing and pathetic state of affairs' in the area under the Chandni Chowk Redevelopment Project from Lal Quila Road up to Fateh Puri Masjid and its surrounding areas including metro stations.
Hindustan Times
23-05-2025
- Politics
- Hindustan Times
HC quashes order on Chandni Chowk panel
The Delhi high court on Thursday directed the Delhi government to withdraw its March 26 order constituting a high-level committee for the maintenance of Chandni Chowk, after the Public Works Department (PWD) admitted the move was based on a 'misreading' of the court's earlier direction issued in February. A bench of chief justice DK Upadhyay and justice Tushar Rao Gedela expressed strong displeasure, rebuking the government for forming the committee without court approval. When the matter came up, the bench questioned why the government had not already withdrawn the order despite acknowledging the mistake. 'If this is their attitude... What is all this? It's too much,' the bench remarked. PWD standing counsel Sameer Vashisht told the court that the order was issued with the intent to preserve and restore Chandni Chowk, but that officials had misunderstood the court's February 18 directive, which had only sought suggestions for such a committee. Following submissions, the court directed immediate withdrawal of the March 26 order, stating, 'Accordingly, the order be withdrawn at the earliest.' The matter will be heard next on July 9. The case stems from a petition filed by the Chandni Chowk Sarv Vyapar Mandal, which alleged administrative apathy and sought action against damage, deficiencies, and illegalities within the Chandni Chowk Redevelopment Project — from Subhash Marg to Fatehpuri Masjid, including areas around the metro station. The petitioner claimed the ₹140-crore project was being undermined by poor coordination among government agencies, resulting in public inconvenience. On February 18, the court had indicated its intent to form a committee with officials from the PWD, MCD, and Delhi Police to address these issues. The court had emphasized that Chandni Chowk was not merely a commercial zone but also of 'historical importance,' attracting lakhs of tourists. Despite this, the PWD unilaterally constituted a committee and issued a mandate for it on March 26. On Wednesday, the court had asked the Delhi government to explain how the PWD issued the order without court authorisation, setting the stage for Thursday's directive for immediate withdrawal.
