New Delhi: Delhi Chief Minister Rekha Gupta announced a major step towards financial accountability and governance reform by ordering a review of all arbitration cases exceeding ₹1 crore in the Public Works Department (PWD) and Irrigation & Flood Control Department (I&FC) from the past two decades.
A high-level committee under the Additional Chief Secretary (PWD/I&FC) has been formed to assess the impact of arbitration decisions made against previous governments. The panel will examine compensation amounts, payment liabilities, and financial losses borne by Delhi due to faulty contracts and disputes.
लोक निर्माण विभाग (PWD) और सिंचाई एवं बाढ़ नियंत्रण विभाग (I&FC) में पिछले 20 वर्षों के 1 करोड़ रुपये से अधिक के आर्बिट्रेशन मामलों की समीक्षा की जाएगी।
— Rekha Gupta (@gupta_rekha) August 27, 2025
इसके लिए अतिरिक्त मुख्य सचिव (PWD/I&FC) की अध्यक्षता में एक समिति बनाई गई है, जो पूर्ववर्ती सरकारों के विरुद्ध दिए गए… pic.twitter.com/xDZCErcVOs
Highlighting a major case, CM Gupta said that under the previous government, irregularities and delays in the Barapulla Phase-III Project caused a loss of ₹175 crore to the exchequer, calling it an “injustice to taxpayers’ money.”
To prevent future misuse, the Chief Minister declared that arbitration clauses will no longer be part of development project contracts. Instead, any disputes will be settled directly in court to ensure transparency and fairness.
“Public funds will only be spent in the interest of the people of Delhi,” she emphasized, adding that strict vigilance on contract management will ensure better infrastructure delivery and prevent wastage of taxpayer money.
