Chandigarh MP Tewari writes to CAG, seeks performance audit

Chandigarh MP and former Union Minister Manish Tewari has written to the Comptroller and Auditor General of India (CAG), K Sanjay Murthy, emphasising the urgent need for a comprehensive performance audit of the 24x7 Water Supply Project under the Smart City Mission, particularly the Manimajra pilot project here.

In the letter, Tewari has stated that he wished to draw the CAG’s attention to the necessity of conducting a detailed performance audit of the 24/7 water supply scheme implemented under the Central Government’s Smart City Mission in Chandigarh.

This project — supported by international agencies — has failed to deliver on its promises, raising serious concerns regarding financial prudence, implementation efficiency and governance accountability.

Tewari mentions that Chandigarh Smart City Limited (CSCL) was assigned several projects, including a key 24/7 pressurised clean water supply initiative with an estimated total cost of Rs 591.57 crore.

In 2016, Chandigarh signed an agreement with the Agence Française de Développement (AFD), a public international financial institution, for cooperation in water supply, sanitation and waste management. Under this framework, the detailed project report (DPR) for the citywide 24/7 water supply project was approved by the Municipal Corporation (MC) of Chandigarh in December 2019.

Later in December 2022, the MC signed another agreement for the phased replacement of 270-km water supply pipelines and coverage of 55 district metering areas (DMAs) by 2029. This pan-city project was planned with a total expenditure of Rs 510 crore, including an AFD loan of Rs 412 crore (to be repaid over 15 years) and a European Union grant of Rs 98 crore.

Tewari says upon completion, the project was expected to make Chandigarh the first Indian city with 24-hour access to clean drinking water.

However, the Manimajra pilot project, implemented at a cost of Rs 166.06 crore under the Smart City Fund, has completely failed.

He said owing to the poor performance of the pilot project, the MC is now considering scrapping the entire citywide project, as not a single area in Manimajra currently receives uninterrupted and high-pressure water supply, he claims.

Vigilance inquiry

The MP also points out that in July 2025, following corruption allegations made by Chandigarh BJP president Jatinder Pal Malhotra, the UT Vigilance Department initiated an inquiry. However, the MC provided only incomplete records, consisting merely of tender documents and noting files, instead of the complete project documentation.

Media reports have suggested that the vigilance investigation has been deliberately derailed, with vested interests allegedly attempting to suppress evidence and influence the inquiry process, says the MP in his letter.

Taking cognisance, the Punjab State Human Rights Commission issued notices to both the Vigilance Department and the MC.

While multiple agencies are investigating the project’s failure, no independent third-party evaluation of water quality has been conducted so far.

Smart City Ltd data

Reliance on self-reported CSCL data is unreliable, and the lack of clarity over loan arrangements further undermines the credibility of official statements — highlighting the need for an independent financial verification.

Given the MC’s own acknowledgment of the project’s complete failure and its consideration of scrapping the initiative, an independent execution audit has become essential to assess public fund mismanagement and to prevent similar failures in other cities, writes Tewari.