CVC Probe Sanctioned for Rs 670 Crore Overrun in Delhi Hospital Project

Lt Governor VK Saxena has approved a Central Vigilance Commission (CVC) probe into a cost escalation of Rs 670 crore in a Delhi hospital project. Saxena formed a committee to investigate procedural violations. Health Minister Saurabh Bharadwaj criticized Saxena for only ordering inquiries. This significant cost overrun necessitates a thorough investigation.

Lt Governor VK Saxena has sanctioned a comprehensive probe by the Central Vigilance Commission (CVC) into a massive Rs 670 crore cost overrun in the construction of a new block at Lok Nayak Hospital. The decision, announced on Tuesday, has prompted strong criticism from Health Minister Saurabh Bharadwaj, who accused Saxena of merely ordering inquiries without addressing key issues.

Saxena also mandated the formation of a committee to scrutinize the procedural breaches that resulted in the excessive spending. This committee is expected to deliver its findings within two months, examining similar projects across various Delhi government hospitals. Authorities revealed that a tender initially set at Rs 465 crore mushroomed to Rs 1,135 crore, placing a significant financial strain on the Delhi government.

The LG emphasized that the Directorate of Vigilance should seek the CVC's support to form a special team of chief technical examiners for an in-depth technical review. Highlighting the unjustified cost increases, Saxena noted reports of disputes between the Public Works Department (PWD) and the hired contractor, which resulted in an arbitral tribunal awarding Rs 82.45 crore to the contractor. The PWD's failure to challenge this decision further exacerbated the financial repercussions.

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