Saxena orders probe into cost overrun in hospital work

New Delhi, July 2

Lieutenant-Governor VK Saxena on Tuesday directed the Vigilance Department to request the Central Vigilance Commission (CVC) to investigate corruption amounting to Rs 1,135 crore in the construction of Delhi Government’s Lok Nayak Hospital.

The case involves the construction of a new building block in the hospital for which a tender worth Rs 465 crore was issued. However, it surged to Rs 1,135 crore, creating an unauthorised liability of Rs 670 crore on the Delhi Government, Raj Niwas officials said.

According to officials from the L-G office, this significant cost escalation has been facilitated through the apparent collusion of the Delhi Government’s Health Department, under Saurabh Bharadwaj and the Public Works Department (PWD), headed by Atishi.

Additionally, he has established a committee to investigate the procedural violations leading to the cost escalation and to review all similar ongoing projects in different Delhi government hospitals.

“The project was scheduled to start on November 4, 2020, with a completion period of 30 months. However, more than three-and-a-half years later, the current progress of work stands at only 64 per cent, even as costs have skyrocketed by 243 per cent,” an official said.

In response, the AAP government said the L-G himself said that cost escalation has happened at the level of officers without the knowledge of the government.

“We welcome any inquiry into this matter and strictest punishment if any illegality is found,” the party responded.