Renovation work at former Delhi chief minister Arvind Kejriwal’s official residence on Flagstaff Road, infamously known as the ‘Sheesh Mahal’ended up costing Rs 33.66 crore, far exceeding the original estimate. A 2022 report by the Comptroller and Auditor General of India, tabled in the Delhi Assembly on Monday, said the final cost was over 342% higher than initially planned.
The project had first been pegged at Rs 7.91 crore based on standard norms, and the contract was awarded at Rs Rs 8.62 crore, which was already above the estimate. However, expenses rose sharply during the execution of the house renovation.
Rs 18.88 crore spent on ‘antique and ornamental’ items
Presenting the report, Delhi Chief Minister Rekha Gupta said that Rs 18.88 crore of the total expenditure was incurred on “superior specifications, artistic, antique and ornamental” items, which means this amount was spent on high-end specifications, including decorative, antique and ornamental items. These additions significantly pushed up the overall cost.
Unauthorised spending: Rs 9.34 crore granted after work was completed
The report pointed to several lapses in the way the project was handled. It flagged violations of rules, diversion of funds and delays in approvals.
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One major issue highlighted was that administrative approval and expenditure clearance worth Rs 9.34 crore were granted more than two months after the work had already been completed, leading to unauthorised spending.
Staff block not built – How much funds were diverted?
The audit also found that Rs 19.87 crore had been sanctioned for constructing a staff block and a camp office. However, the staff block was never built. Instead, seven servant quarters came up at a different location unrelated to the original plan.
The camp office, which was meant to be a permanent structure, was scaled down to a semi-permanent one and remained incomplete. The Public Works Department later moved to close the project in June 2023 after funds ran out.
Changes in design and expansion of area by about 36%
During the course of the project, the built-up area of the bungalow was increased by about 36%, from 1,397 square metres to 1,905 square metres. The design was also upgraded with premium civil and electrical fittings, adding to the rising costs.
Repeated revisions, single contractor
To manage escalating expenses, the Public Works Department revised the project estimate four times. Despite additional work, no fresh tenders were issued. Instead, the same contractor continued to execute projects worth around Rs 25.80 crore.
Political row over ‘Sheesh Mahal’: Court-style scrutiny of execution
The bungalow, where Kejriwal stayed from 2015 to 2024, became a political flashpoint ahead of the 2025 Delhi Assembly elections. The Bharatiya Janata Party labelled it “Sheesh Mahal”, alleging misuse of public funds by the Aam Aadmi Party leadership. The BJP later defeated the AAP, ending its decade-long rule in the capital.
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The audit report also highlighted delays in approvals, diversion of sanctioned funds and execution decisions that bypassed standard procedures. It underlined how repeated revisions and lack of fresh tenders contributed to the steep rise in costs.
The findings have brought renewed focus on how large public works projects are planned and executed, especially those involving significant public spending. |
