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CAG flags 342% cost explosion in Kejriwal's 'Sheesh Mahal' renovation
The residence is also known as 'Sheesh Mahal'

CAG flags 342% cost explosion in Kejriwal's 'Sheesh Mahal' renovation

Mar 24, 2026
04:45 pm

What's the story

The renovation of the official residence of former Delhi Chief Minister Arvind Kejriwal, popularly known as "Sheesh Mahal," has seen costs skyrocket by a staggering 342%. According to PTI, the Comptroller and Auditor General of India (CAG) flagged this massive increase in its report. Initially, the Public Works Department (PWD) estimated the project at ₹7.91 crore, but final expenditure soared to ₹33.66 crore, Hindustan Times reported.

Project details

Expanded scope of project and high-end features

The project's scope was expanded with a 36% increase in built-up area from 1,397 square meters to 1,905 square meters, a 36% rise. This also included high-end features, "artistic and antique items, and ornamental works." The audit report also flagged procedural lapses, such as the lack of transparency in selecting consultancy firms and contractors through restricted bidding.

Cost increase

PWD didn't invite fresh tenders for extra work

The report also noted that the PWD didn't invite fresh tenders for extra work worth ₹25.8 crore. Instead, the same contractor was given additional work without proper approvals. Post-facto approvals were also granted after project completion, creating liabilities without prior approval. "AA&ES (administrative approval and expenditure sanction) for 5th preliminary estimate amounting to ₹9.34 crore was issued more than two months after completion of the work, thus creating a liability without any approval," the CAG report stated.

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Political response

AAP defends 'Sheesh Mahal' renovation, BJP slams Delhi government

In response to the CAG report, the Aam Aadmi Party (AAP) defended the work done at "Sheesh Mahal." They termed allegations of wrongdoing as baseless and clarified that it is official government property. Meanwhile, Delhi BJP president Virendra Sachdeva slammed the Kejriwal government for focusing on personal projects instead of development.

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