CAG report slams delay, cost escalation in Kochi Corporation headquarters project
The continuous delay in the construction of Kochi Corporation’s new headquarters at Marine Drive, along with the accompanying cost escalations, has drawn sharp criticism in
The continuous delay in the construction of Kochi Corporation’s new headquarters at Marine Drive, along with the accompanying cost escalations, has drawn sharp criticism in the Comptroller and Auditor General’s report on local bodies for the period 2020-21 to 2022-23. Incidentally, the building remained incomplete during the period covered by the report. It was eventually inaugurated on October 21, 2025, towards the fag end of the previous Left Democratic Front council, at an escalated cost of around ₹61 crore. However, further works remain pending. The report noted that the contract for the new building was awarded at a cost of ₹18.83 crore, with a stipulated completion time of 20 months.
Administrative sanction was accorded in July 2006. Although work commenced, the contractor halted construction in April 2008 following several variations from the approved estimate introduced by the Corporation, which led to disputes. The contractor was paid ₹6.10 crore during this period. While the Corporation Council decided to terminate the contract at the contractor’s risk and cost, the Kerala High Court, acting on a petition filed by the contractor, directed otherwise. Subsequently, the work was re-awarded to the same contractor in May 2015 with a revised estimate of ₹18.70 crore for the remaining work, the report observed.
Further variations and additions led to another revision in July 2018, raising the estimate to ₹24.71 crore. By December 2024, despite spending ₹25.70 crore, the building remained incomplete. During a joint physical verification that month, audit officials found waterlogging up to 1.5 feet in the basement, even though the contractor had been instructed a year earlier to rectify seepage issues. The rectification, however, was not carried out. “Audit observed that frequent estimate revisions, slow pace of work, insufficient own funds, etc., resulted in cost overruns and non-completion of the project even after 17 years.
The government stated in November 2024 that the building was in its final stage of construction and would be completed in January 2025. However, no specific remarks were offered by the government for the non-completion of the building even after 17 years of its commencement,” the report said.
The BriefWire