Delhi’s LNJP Hospital Under Scanner For ₹650 Cr Irregularities

The Delhi Lieutenant Governor, V. K. Saxena, first raised alarm about the Lok Nayak Hospital (LNJP) new block project in early July 2024. A tender initially approved at ₹465 crore ballooned to over ₹1,135 crore—an astonishing 243 percent increase—creating an unauthorized liability of around ₹670 crore for the Delhi government. Saxena referred the matter to the Central Vigilance Commission for technical examination and appointed a committee led by a retired IAS officer to investigate procedural violations.

The Anti‑Corruption Branch and Directorate of Vigilance found that delays and cost overruns stemmed from officers bypassing finance and cabinet approvals. The PWD claimed only a minor increase in scope but the budget had jumped far more—inexplicable and unjustified by standard practices.

AAP officials responded by saying the overruns were due to Covid‑19 exigencies and shifting priorities. They accused BJP of politicizing the issue and welcomed any inquiry, insisting the LG’s own department should have acted earlier instead of reacting post‑media coverage.

What Has Happened Since

On August 6, 2025, the Delhi government formally accused former Health Minister Satyendar Jain of orchestrating a ₹650 crore cost escalation through frequent on‑site inspections and design changes. PWD Minister Parvesh Verma claimed that those changes drove up expenses and labeled the incident a scam. The government sent the file to LG Saxena for further investigation, possibly by the ACB or CBI.

The LG’s committee — formed in 2024 — had earlier identified serious procedural lapses. It noted a favored architect was appointed without competitive bidding, violating procurement and financial rules. Even though six consultants were empaneled, consultants were assigned district‑wise without inviting bids per project. This undermined transparency and may have allowed misuse of public funds.

Meanwhile the AAP criticized the allegations. They argued that one corruption case against Jain had just been closed by a court due to lack of evidence and said the BJP was using investigations as political tools. They called the probes frivolous and time‑wasting, claiming no proven wrongdoing.

What Comes Next

Now the LG must decide whether the investigation will stay with the ACB or escalate to the CBI. Both agencies will have to dig through audit trail, tender documentation, payments and design revisions. If preliminary findings hold up, responsibility may lie with officials in Health and PWD. Public servants might face charges under the Prevention of Corruption Act.

The committee’s technical report has set a two‑month deadline but so far no findings have been made public. At this stage, a detailed audit and forensic accounting can reveal whether inflated estimates or contractor manipulation led to the massive overrun.

This case reflects systemic failure in planning and governance. A high‑profile health project meant to improve care instead highlights financial mismanagement. The cost escalation nearly doubled the sanctioned amount. Accountability is overdue, especially when working with public funds. If no tangible action occurs despite glaring numbers and delays, citizens will feel cheated. The public must know what happened, who authorized adjustments, and why financial oversight failed so spectacularly.

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