CAG Report Flags 300% Cost Surge, Tender Lapses, Missing Records In Kejriwal’s ‘Sheesh Mahal’ Project

Last Updated:March 24, 2026, 08:15 IST

Built-up area of ‘Sheesh Mahal’ rose from 1,397 to 1,905 sq m, up 36%, with additions of superior specifications, artistic, antique and ornamental works.

Renovation and construction work at ‘Sheesh Mahal’, former Delhi chief minister Arvind Kejriwal’s official residence, saw costs rise by more than 300 per cent, according to a 2022 report by the Comptroller and Auditor General of India.

The audit report, dated March 31, 2022, was tabled in the Delhi Legislative Assembly on Monday.

What the CAG report said?

The report said the Public Works Department (PWD) initially estimated the project at Rs 7.91 crore for additions and alterations. The work was awarded at Rs 8.62 crore, but final expenditure rose to Rs 33.66 crore, more than four times the original estimate.

The findings were cited by the BJP, which has previously referred to the residence as “Sheesh Mahal". The audit pointed to lapses in selecting consultants and contractors. It said the basis for choosing three consultancy firms for restricted bidding was not provided.

It added that five contractors were selected through restricted tendering, but only one met the required experience criteria, raising concerns over the process.

What were the changes made during renovation?

The built-up area increased from 1,397 square metres to 1,905 square metres, a 36 per cent rise. The report also noted the addition of superior specifications, artistic and antique items, and ornamental works.

These changes led to repeated revisions, with four revised preliminary estimates prepared.

The report said fresh tenders were not invited for additional work worth Rs 25.8 crore, which was instead given to the existing contractor. It added that Rs 18.88 crore was spent on superior specification and ornamental items executed as extra work.

The audit also noted that administrative approval for a revised estimate of Rs 9.34 crore was issued more than two months after completion, creating liability without prior approval.

Issues in staff block project

Irregularities were also found in a second component involving a staff block and camp office. Although Rs 19.87 crore was sanctioned, the planned structure was not completed. Instead, funds were used to build seven servant quarters at another location.

The report said building plan approvals were not obtained before tendering. Proposals were sent to the building committee only after tenders were issued, and construction went ahead without sanctioned plans. Revised approvals from the Delhi Urban Art Commission were also not available on record.

Missing records

The audit highlighted gaps in documentation, stating that complete records were not provided despite repeated reminders.

It said it could not confirm the planning process or verify the correctness and genuineness of the work carried out.

What BJP said?

The BJP used the findings to allege large-scale irregularities. Delhi BJP president Virendra Sachdeva said the government had not delivered development and instead focused on building the chief minister’s residence, adding that construction continued during the COVID period.

However, the Aam Aadmi Party rejected the allegations, saying the house remains the official residence of the chief minister and calling the claims “baseless". It added that the allegations stand “completely exposed" after its leaders were discharged in the excise case.

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