The CAG reportedly said Spageage Switchgears, a disqualified firm bidding for street lighting project, was declared qualified "irregularly" after it made a plea to the Chief Minister.
With pressure mounting on Delhi government following the reported irregularities pointed by CAG in certain Commonwealth Games projects, Chief Minister Sheila Dikshit Wednesday held hectic parleys with her cabinet colleagues and top officials and discussed the issue.
A meeting held at Dikshit's official residence, on Thursday morning was attended by PWD Minister Raj Kumar Chauhan, Transport and Education Minister Arvinder Singh Lovely and Power Minister Harun Yusuf besides Chief Secretary PK Tripathi and some other officials.
Later she also held couple of meetings with officials and believed to have discussed the situation due to the reported allegations levelled against her and the government by the CAG.
Sources said the government will react to the CAG report only after the it is tabled in the Parliament.
The CAG has reportedly pointed out that Spageage Switchgears, one of the disqualified firms bidding for street lighting project, was declared qualified "irregularly" after it made a plea to the Chief Minister.
It also reportedly found overspending by the government and civic agencies to the tune of over Rs100 crore over streetscaping and an excess expenditure of Rs31.07 crore on street lighting by MCD, NDMC and PWD.
However, city government stoutly rejected the allegations, saying she never "intervened to favour" any firm and all due processes were followed in finalising the contracts.
Tripathi, reacting to media reports about the CAG findings, said Dikshit never intervened in award of any contracts and all the allegations levelled against her were "totally incorrect".
Unfazed by the allegations, Dikshit asserted she or her government has "not done anything wrong" and said everything was done keeping in mind the "national interest and prestige".
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