Govt orders audit of PPP-managed industrial clusters in Narela, Bawana

New Delhi: Delhi govt will conduct a comprehensive audit of the Narela and Bawana industrial areas for 2011-12 to 2025-26 to probe irregularities and assess their financial impact.

The two clusters were developed under a public-private partnership (PPP) model through Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) for redevelopment, operation and maintenance of industrial infrastructure.

DSIIDC has floated tenders to appoint auditors for revenue audits of concessionaires. The exercise will involve scrutiny of audited financial statements, statutory and tax audit reports, GST records and other documents.

Under the PPP framework, special purpose vehicles (SPVs) were designated as concessionaires to plan, finance, redevelop and maintain infrastructure, including roads, drainage, water supply, waste management systems, parking, horticulture and street lighting.

Officials said the audit will verify bills raised by concessionaires, revenue realised, payments from escrow accounts, dues and any excess payments. Auditors will flag irregularities, if any, and assess their financial impact.

“The audit has been initiated to independently verify the bills raised by the concessionaires and ascertain whether the claims made by them are supported by records. At present, there is no institutional mechanism available to cross-check these claims in detail. The findings of the audit will help the govt determine the accuracy of the bills and take an informed decision on payments and any other issues arising from the review,” an official said.

The scope also includes reconciliation of bank statements, escrow accounts, ledgers, unit-wise records, agreements, approvals and financial statements. The audit aims to detect any revenue suppression, fund diversion, leakage, understatement of receipts, unauthorised recoveries or excess collections.