Delhi PPP audit ordered for Narela and Bawana industrial areas from 2011–12 to 2025–26

The Delhi government planned a revenue audit of the Narela and Bawana industrial areas. Officials said on Monday the review covered 2011-12 to 2025-26. The exercise aimed to find any irregularities and measure any financial impact. The audit related to infrastructure redevelopment, operation, and maintenance work in both industrial areas.

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Officials said the Delhi State Industrial Infrastructure Development Corporation, or DSIIDC, started these projects using a public private partnership model. Under this setup, special purpose vehicles were formed. DSIIDC selected these entities as concessionaires through a concession agreement. The arrangement covered work linked to industrial infrastructure services inside Narela and Bawana.

DSIIDC audit tenders for Narela and Bawana industrial areas

According to officials, DSIIDC floated tenders to hire auditors for revenue audits of the concessionaires. The audit planned to check how money was billed and collected. It also aimed to confirm whether funds moved correctly through the escrow account. Any payable amount, or any excess payment, would also come under review.

Official documents said auditors would examine audited financial statements and statutory audit reports. The review would also include tax audit reports and GST records. Auditors would assess management representations and other related documents held by the concessionaires. The purpose was to match declared figures with available records and reported filings.

DSIIDC revenue checks in Narela and Bawana industrial areas

Under the concession terms, concessionaires were responsible for planning and funding the work. The scope included redevelopment and construction, along with daily operations and upkeep. Facilities covered roads, drainage, and water supply systems. It also covered wastewater systems, solid waste management, parking, horticulture, and street lighting.

The documents said the audit would include reconciliations with bank statements and escrow accounts. Auditors would also compare ledgers and unit-wise records. Agreements, approvals, and audited financial statements would be reviewed. The checks aimed to spot any suppression of revenue or diversion of funds.

The same documents listed other areas for scrutiny during the audit. These included leakage, understatement, unauthorised recovery, and excess collection. Auditors would also quantify the financial impact of any irregularity found. Any recoverable amount identified during the review would be calculated as part of the exercise.

With inputs from PTI