CAG flags 342 pc cost escalation in Kejriwal bungalow renovation

A CAG report revealed that renovation of former Delhi CM Arvind Kejriwal’s residence cost Rs 33.66 crore, far exceeding estimates. It flagged irregularities, fund diversion, and high spending on premium items, along with procedural lapses by the PWD

New Delhi: The renovation work at former Delhi Chief Minister Arvind Kejriwal’s then official residence, 6 Flagstaff Road, was completed at a cost of Rs 33.66 crore, 342 per cent above the estimated cost, said a CAG report tabled in the Delhi Assembly on Monday.

The Comptroller and Auditor General (CAG) report for 2022, tabled in the Assembly by Chief Minister Rekha Gupta, also mentioned that out of Rs 33.66 crore, Rs 18.88 crore was spent on “superior specifications, artistic, antique and ornamental” items.

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The Flagstaff bungalow, where Kejriwal lived as Delhi Chief Minister from 2015 to 2024, was nicknamed “Sheesh Mahal” by the BJP to highlight alleged corruption by the Aam Aadmi Party and its national convener during the Assembly polls held in February 2025. The BJP removed the AAP from power in Delhi after a decade.

The report also listed various irregularities in providing additional accommodation at the bungalow, as well as additions and alterations in the Camp Office and Staff Block there, by the Public Works Department (PWD).

Administrative approval and expenditure sanction amounting to Rs 9.34 crore were granted more than two months after completion of the work, creating a liability without prior approval, it said.

Further, the CAG report said that the audit noted that out of Rs 19.87 crore sanctioned for the construction of the Staff Block and Camp Office, funds were diverted for other works. The Staff Block was not constructed, and out of the funds, seven servant quarters were constructed at another location not related to the original work.

The nature of the Camp Office was altered from a permanent to a semi-permanent structure (SPS). Finally, only a basic structure of the Camp Office was completed as the funds for the same were exhausted, and foreclosure of the work was initiated by the PWD in June 2023, said the CAG report.

In the work of additions and alterations to the then CM residence, the PWD prepared preliminary estimates (PE) of Rs 7.91 crore by adopting the Plinth Area Rates published by the Central Public Works Department for Type VII and VIII accommodation/bungalows.

“The work was declared urgent by the PWD. The said work, although awarded at Rs 8.62 crore, being 13.21 per cent above the estimated cost, was finally completed at Rs 33.66 crore, being 342.31 per cent above the estimated cost,” said the report.

Audit observed that during work execution, the PWD increased the built-up area from 1,397 sqm to 1,905 sqm (36 per cent) and also altered the applicable specifications of the work by using several items of superior specifications, artistic and antique items, and ornamental works, both civil and electrical in nature, it said.

The PWD, for covering the cost, revised the preliminary estimates four times. Further, it also did not explore the possibility of tendering for additional work, and as such a single contractor executed works amounting to Rs 25.80 crore, it added.