Delhi Government Orders 20-Year Audit on Arbitration Payments

The Delhi government, under Minister Parvesh Verma, has announced a sweeping audit of arbitration cases involving payments exceeding Rs 1 crore in its Public Works Department, Delhi Jal Board, and Irrigation and Flood Control Department. The review, spanning two decades, seeks to hold departments accountable for prematurely settling claims without pursuing all legal avenues.

This initiative, prompted by allegations of financial irregularities in Barapullah phase-3 construction, follows Chief Minister Rekha Gupta's directive for a vigilance probe. The government has also revised contract protocols, removing the arbitration clause and requiring legal clearance before settling claims favoring private contractors.

Verma emphasized that contractors must now resolve disputes through the courts, signaling a shift toward rigorous legal processes. This strategic audit endeavors to reform contract enforcement and reduce financial burdens inflicted by arbitration awards against the government.

(With inputs from agencies.)