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CAG report reveals shocking cost of Delhi CM's house

The leaked Comptroller and Auditor General (CAG) report on the renovation of the Delhi Chief Minister's official residence has sparked a fierce political row just ahead of the Delhi elections.

News Arena Network - New Delhi - UPDATED: January 7, 2025, 09:49 AM - 2 min read

BJP targets Kejriwal over Sheesh Mahal renovation scandal.


The leaked Comptroller and Auditor General (CAG) report on the renovation of the Delhi Chief Minister's official residence has sparked a fierce political row just ahead of the Delhi elections.

 

The revelations of exorbitant costs and questionable procedures in the project have given opposition parties, especially the Bharatiya Janata Party (BJP), ample ammunition to target Arvind Kejriwal and his Aam Aadmi Party (AAP).

 

The renovation of the CM’s residence, located at 6 Flag Staff Road, was initially approved in 2020 with an estimated cost of Rs 7.61 crore.

 

However, by April 2022, the final cost had ballooned to Rs 33.66 crore, marking a staggering 342% increase over the original budget. This sharp rise in costs has led to accusations of fiscal mismanagement and misuse of public funds.

 

The BJP, which has long criticised the AAP government for its alleged elitism, has taken to calling the residence the ‘sheeshmahal,’ pointing to the luxury and extravagance involved in the renovations.

 

The project included the installation of expensive and ornamental features, such as antique finishes and a luxury modular kitchen, changes that were made without adequate justification.

 

One of the key concerns raised in the CAG report is the lack of transparency in the way the project was executed. The report details several irregularities in the planning, tendering, and execution processes.

 

For instance, the consultancy contracts were awarded with minimal documentation, and the selection process for contractors was rushed, with spot quotations from three consultants being finalised within a day.

 

Moreover, the preliminary cost estimates prepared by the consultants were vague and were revised multiple times during the project, contributing to inflated costs. The built-up area of the residence was increased by 36%, further driving up the expenses.

 

The CAG also identified significant flaws in the tendering process, where arbitrary shortlisting of bidders and the absence of competitive tenders led to an additional cost of Rs 25.8 crore.

 

In addition, the report found instances of overpayment for work done, including the substitution of materials with more expensive alternatives, which added an extra Rs 1.42 crore to the bill.

 

Another project, involving the addition and alteration of a staff block and camp office, exceeded its budget by Rs 2.68 crore. Despite the cost overruns, the work was still incomplete as of October 2023.

 

The report also pointed out inflated estimates and deviations from the cabinet-approved plans, raising questions about the overall accountability of the project.

 

In light of these findings, the BJP has accused Kejriwal and the AAP of hypocrisy, particularly when compared to the challenges faced by the poor. The BJP has also highlighted the contrast between the luxury renovation and its own focus on affordable housing projects.

 

Prime Minister Narendra Modi, during a rally, seized upon the controversy, comparing his government’s focus on housing for the poor with Kejriwal’s alleged extravagance.

 

He remarked, "I could have built a sheeshmahal, but my dream is to provide permanent homes to my countrymen."

 

The BJP has also called for the CM’s residence to be declared a "tourist attraction," a move that would capitalise on the growing public discontent over the renovations.

 

Parvesh Verma, the BJP candidate in the New Delhi constituency, who is up against Kejriwal in the upcoming elections, has been vocal in his demands for action over the matter.

 

In response, AAP has dismissed the BJP's accusations as politically motivated. The party has pointed to other instances of financial irregularities mentioned in the CAG report, including allegations concerning BJP-ruled states, which the AAP claims have been ignored.

 

Kejriwal, too, has hit back, calling out Prime Minister Modi’s remarks as hypocritical. He notably responded to Modi’s "sheeshmahal" jibe, stating that "one who wears a Rs 10 lakh suit, talking about sheeshmahal doesn't suit his mouth."

 

While the AAP has rejected the CAG’s findings as exaggerated, they have also used the opportunity to emphasise their record in welfare initiatives, including strides in education, healthcare, and women’s empowerment.

 

The party argues that the timing of the report’s leak, just before the elections, is a deliberate attempt to distract voters and undermine their achievements.

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