CAG Flags Delhi Metro's Costly Construction Oversight

The Comptroller and Auditor General criticized the Delhi Metro Rail Corporation for not recovering Rs 15.54 crore owed due to repairs and incidental costs after substandard construction by a contractor. Despite a conciliation process, DMRC recovered only Rs 4.12 crore from the contractor.

The Comptroller and Auditor General (CAG) has highlighted significant financial concerns for the Delhi Metro Rail Corporation (DMRC) due to unrecovered debts of Rs 15.54 crore linked to repair costs and related incidental expenses.

In a report presented in Parliament on Monday, the CAG noted that DMRC had to undertake additional repair work due to poor construction quality by a contractor. The DMRC spent Rs 11.85 crore on these repairs, engaging another contractor for the job, as the original contractor was reluctant to fix defects within the defect liability period.

Besides repair costs, DMRC incurred Rs 7.81 crore in expenses for relocating allottees to alternative accommodation and covering additional costs such as lease charges and brokerage. Despite these expenditures, DMRC managed to retrieve only Rs 4.12 crore from the contractor through a conciliation process, instead of opting for the arbitration process stipulated in the contract, the report outlined.

(With inputs from agencies.)