CAG slams DJB for failing to repay loans worth Rs 66.5K crore in 10 years

The CAG recommended the DJP should explore ways and means for the collection of the huge amount of dues outstanding from consumers.
Comptroller and Auditor General of India.
Comptroller and Auditor General of India.File photo | ANI
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NEW DELHI: The Comptroller and Auditor General of India (CAG) on Wednesday rapped the Delhi Jal Board (DJB) for failing to repay loans worth Rs66, 595 crore accrued over a period of 10 years. The CAG recommended the DJP should explore ways and means for the collection of the huge amount of dues outstanding from consumers.

The audit noted that the outstanding loan of DJB increased from Rs 25,140 crore in April 2017 to Rs 34,540 crore in March 2022. Moreover, the interest on the accumulated loan was Rs 32,055 crore on March 31, 2022. However, the DJB has not repaid any loan to the Delhi government since 2013-14, and the total outstanding loan and interest stood at Rs 66,595 crore as of March 2022. The CAG report on the DJB was tabled in the Delhi Assembly.

In its reply to the auditor, the DJB stated that it is a non-profit organisation with the main objective of supplying water to more than 26 lakh consumers of Delhi, which comes under essential household service. To provide water supply, the Delhi government grants loan to the DJB, because the income of the DJB from supply of water is not enough to repay the loan amount. Therefore, it requested the government to convert the loans into grants. The decision is still pending with the Delhi government.

The auditor rejected the reply, saying it did not make efforts to either periodically revise the water/sewage charges nor made efforts for recovery of dues pending from consumers. The matter was referred to the government in July 2023.

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