MP Manish Tewari seeks CAG probe into Chandigarh’s Rs 591 cr Smart City Water Supply project
Calls for Detailed Performance Audit of Failed Manimajra Pilot Scheme
By Parmod Bharti
Chandigarh, October 26, 2025: Chandigarh MP and former Union Minister Manish Tewari has written to the Comptroller and Auditor General of India (CAG), K. Sanjay Murthy, demanding a comprehensive performance audit of the 24x7 Smart City Water Supply Project, particularly its failed Manimajra pilot, which he says has “completely collapsed” despite heavy public expenditure.
In his letter, Tewari highlighted serious concerns about financial prudence, implementation efficiency, and transparency in the ₹591.57-crore project under the Smart City Mission, calling it a “classic case of poor planning and mismanagement of public funds.”
He pointed out that despite central claims of success, residents in Manimajra continue to receive dirty, foul-smelling water for barely 2–4 hours a day, contrary to official assertions of round-the-clock, high-pressure water supply.
Tewari noted that the Manimajra pilot, built at a cost of ₹166.06 crore, was meant to serve as a model before expanding citywide. However, it has failed so completely that the Municipal Corporation of Chandigarh (MCC) is now considering scrapping the entire project.
The MP said the project’s financial structure — involving an AFD loan of ₹412 crore and a European Union grant of ₹98 crore — lacked proper oversight and transparency. He expressed concern that loan repayments and rising costs could double water tariffs, burdening residents.
Citing discrepancies between government replies in Parliament and ground realities, Tewari said the Ministry of Home Affairs had earlier claimed successful completion of physical infrastructure and trial operations. Yet, MCC officials and local reports confirm that the project achieved only 5% progress as of December 2024.
He also referred to vigilance and human rights inquiries launched after corruption allegations surfaced earlier this year, but said investigations had stalled amid missing records and alleged interference.
Tewari urged the CAG to audit the project’s financial and technical aspects, including:
- Verification of total project costs and funding sources
- Compliance with tendering and procurement norms
- Comparison of actual implementation with DPR targets
- Value-for-money assessment and accountability for failures
- Coordination between CSCL, MCC, and oversight bodies
“This is not just a financial issue but one of public health and governance integrity,” Tewari wrote. “The people of Chandigarh deserve to know how hundreds of crores were spent without improving basic water supply.”
He called on the CAG to initiate an independent, full-scale performance audit to ensure transparency, accountability, and corrective action in the city’s Smart Water project.