New Delhi, Jul 29 (PTI) In a major accountability push, the Delhi government has ordered a comprehensive audit of all arbitration cases involving payments exceeding Rs 1 crore over the last 20 years in the Public Works Department (PWD), Delhi Jal Board (DJB) and Irrigation and Flood Control (I&FC) Department, officials on Tuesday said.
PWD Minister Parvesh Verma directed that no further payments in these departments would be made without legal clearance.
"Public funds must be treated as sacred. For years, departments have settled claims through arbitration without exhausting legal options — this won’t continue. We are auditing two decades of arbitration history to identify who was responsible and why legal battles were surrendered," said Verma, who holds all three portfolios.
The move comes a day after Chief Minister Rekha Gupta directed a vigilance probe into the matter of arbitration and alleged irregularities in Barapullah phase-3 construction work.
The ruling BJP has blamed the previous Aam Aadmi Party (AAP) government for "neither filing a review petition nor acting against the responsible officer".
"I have now removed the arbitration clause from the PWD contracts. If there is a dispute, let it go to the court. No easy money through arbitration anymore,” Verma added.
The government has directed that all arbitration cases involving payments of Rs 1 crore and above will be part of the audit.
"Along with that, the departments have to submit details of cases decided against the government, the amount paid or losses incurred in such cases and the number of appeals filed before making payments," the government said in a statement.
The government has issued a binding directive that no payments shall be made in arbitration cases where the award is against the government unless all legal remedies have been exhausted and formal clearance is obtained from the law department, the statement added.
According to officials, the departments have been instructed to provide year-wise and award-wise data.
This audit comes amid mounting concerns over repeated legal setbacks in infrastructure and civil works, many of which have resulted in huge payout to private contractors.
"Contractors will henceforth have to directly approach the courts in the event of disputes, making the process more rigorous and reducing the scope for opportunistic claims," said Verma.
With this 20-year review, the Delhi government aims to establish structural reforms in contract enforcement and legal strategy.