New Delhi: HL August 05, 2026
The Delhi Government has initiated a vigilance inquiry into the arbitration award related to the expansion of Lok Nayak Jai Prakash (LNJP) Hospital, following concerns over rising project costs and the approval of a substantial payment.
The decision was taken by the Expenditure Finance Committee (EFC) during a meeting chaired by Chief Minister Rekha Gupta. The committee directed the Health Department to conduct a detailed examination of the circumstances that led to the arbitration award and the subsequent proposal for payment.
According to the decision, officials have been asked to submit a comprehensive report outlining the background of the dispute, the sequence of events, legal opinions obtained, financial implications, and approvals granted at different stages of the project. The inquiry will also examine the decision-making process that resulted in the acceptance of the arbitration award.
The arbitration award is valued at Rs. 94.61 crore, including Rs. 82.44 crore as the principal award amount and Rs. 12.17 crore towards interest. The committee observed that such financial liabilities have contributed significantly to the overall escalation in the cost of the hospital expansion project.
Construction of the new multi-storey wing at LNJP Hospital began in November 2020 with an initial completion target of May 2023. However, the project has witnessed repeated delays, leading to increased expenditure and renewed scrutiny of its implementation.
The committee also reviewed proposals concerning infrastructure projects at LNJP, Madipur, and Jwalapuri hospitals, while emphasizing the need for greater financial accountability and stronger oversight in public healthcare infrastructure projects.
