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The Delhi government has initiated a revenue audit of concessionaires operating in the Narela and Bawana industrial areas, covering the period from 2011-12 to 2025-26. The exercise will examine financial records, revenue collections, escrow account transactions and payments made under the public-private partnership model implemented by the Delhi State Industrial Infrastructure Development Corporation (DSIIDC). Auditors will assess whether any deviations, irregularities, excess recoveries, revenue suppression or fund diversions occurred during the redevelopment, operation and maintenance of industrial infrastructure. The review is expected to quantify any financial impact and identify recoverable amounts, providing a detailed assessment of the long-running PPP arrangements in two of Delhi’s key industrial clusters.
The Delhi government has decided to conduct a comprehensive audit of the Narela and Bawana industrial areas to examine whether any financial irregularities occurred during the implementation and operation of redevelopment projects undertaken under the public-private partnership (PPP) model. The audit will cover the period from 2011-12 to 2025-26 and will assess the financial impact of any deviations identified during the review.
The two industrial areas were redeveloped through PPP arrangements overseen by the Delhi State Industrial Infrastructure Development Corporation (DSIIDC). As part of the framework, special purpose vehicles (SPVs) were incorporated and appointed as concessionaires under concession agreements executed with the government agency.
These concessionaires were responsible for designing, financing, redeveloping, constructing, operating and maintaining infrastructure facilities within the industrial estates. Their mandate covered key civic and industrial infrastructure, including roads, drainage networks, water supply systems, wastewater management facilities, solid waste management services, parking infrastructure, horticulture works and street lighting.
Officials said DSIIDC has floated tenders to appoint auditors who will undertake revenue audits of the concessionaires managing the industrial areas. The selected auditors will be tasked with carrying out a detailed examination of the financial and operational records maintained by the entities over the audit period.
According to official documents, the auditors will scrutinise audited financial statements, statutory audit reports, tax audit reports, Goods and Services Tax (GST) records, management representations and other related documentation maintained by the concessionaires. The exercise will also include verification of bills raised by the concessionaires and an assessment of revenue collection mechanisms.
The audit scope extends to reviewing funds transferred from escrow accounts, examining amounts payable to concessionaires and identifying any excess payments that may have been made. Auditors will also investigate whether any deviations or irregularities occurred and determine their financial implications.
As part of the review, financial records will be reconciled with bank statements, escrow account details, ledgers, unit-wise records, agreements, approvals and audited accounts. The objective is to identify any instances of revenue suppression, diversion of funds, leakage of revenues, understatement of collections, unauthorised recoveries or excess collections, if any.
Official documents further indicate that the appointed auditors will be required to quantify the financial impact of any irregularity detected during the exercise. They will also determine whether any recoverable amounts are due based on the findings.
The audit is expected to provide the Delhi government with a detailed financial assessment of the PPP-based redevelopment and maintenance arrangements in Narela and Bawana, two of the capital’s major industrial zones, and establish whether any corrective financial action is warranted.
Source - PTI
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