L-G orders for CVC probe in cost overrun of hospital block work; Min slams move

New Delhi: Lt Governor VK Saxena has approved a proposal for a CVC probe into a massive cost escalation of Rs 670 crore in the construction of a new block of Delhi government’s Lok Nayak hospital, officials at the L-G office said on Tuesday, prompting Health minister Saurabh Bharadwaj to slam the former for just ordering inquiries.

Saxena has also constituted a committee to examine the procedural violations that led to cost escalation to the tune of Rs 670 crore. The committee, which will submit its report within two months, will also examine all such ongoing projects in different Delhi government hospitals, they said.

When asked about the L-G’s direction, Bharadwaj in a press conference said, “The L-G’s work is to order inquiries day and night. What other work has he done for Delhi? The Vigilance department is under him. He does this so that the media asks questions.”

However, sources in the Delhi government welcomed the inquiry and strictest punishment if any illegality was found.

A tender worth Rs 465 crore for the construction of an additional block at Lok Nayak hospital has increased to Rs 1,135 crore, thereby creating an unauthorised liability of approximately Rs 670 crore on the Delhi government, the LG said in an official note. The L-G has asked the Directorate of Vigilance to request the Central Vigilance Commission (CVC) to constitute a special team of chief technical examiners to conduct a detailed technical examination in the matter, the officials said.

“Its beyond justification that such huge cost over runs were effected at the level of the engineers of the department itself even though it should had gone to the Finance department and the Cabinet,” the L-G said in his note. The work on the new block at Lok Nayak hospital was scheduled to start on November 4, 2020 and get completed within 30 months.

“However, even after three and a half years, the current progress of work is only 64 per cent even as costs have risen by 243 per cent,” the officials said.

The Delhi government’s Health department had assigned the project to the Public Works Department (PWD). However, the work originally tendered out for Rs 465 crore ran into re-estimates and expansion of scope of work amounting to a whopping Rs 1135 crore, they said.

The PWD attributed the cost over runs to increase in the scope of work, the officials said.

The L-G wrote to the chief minister on June 22, 2023, flagging reports of “inordinate delays” in hospital projects highlighting cost over runs running into thousands of rupees.

The L-G said in his note that he noticed a dispute between the PWD and the private construction company engaged for the work.