CAG flags ₹5.5 crore interest loss in DTC EPF Trust under AAP rule
Synopsis
A CAG report tabled in the Delhi Assembly has found that the DTC EPF Trust failed to invest surplus provident fund contributions on time between 2020 and 2023, causing a potential ₹5.5 crore interest loss — a finding that puts the erstwhile AAP government's financial oversight of a workers' retirement fund under sharp scrutiny.
Key Takeaways
The CAG tabled two audit reports in the Delhi Assembly on 7 August 2026 , the first day of the Monsoon Session.
Para 2.8 flags a potential ₹5.5 crore interest loss in the DTC EPF Trust due to failure to invest surplus funds between April 2020 and March 2023 .
Para 2.7 identifies an avoidable payment of ₹5.63 crore on dewatering works, caused by quantity deviations ranging from 108% to 2,545% .
The CAG has recommended designating officials responsible for timely investment of surplus EPF funds.
The findings relate to the period of the erstwhile AAP government led by Arvind Kejriwal .
A Comptroller and Auditor General (CAG) report tabled in the Delhi Assembly on 7 August 2026 has flagged a potential interest loss of ₹5.5 crore in the Delhi Transport Corporation (DTC) Employees' Provident Fund (EPF) Trust, attributing it to a failure to invest surplus funds in a timely manner during the tenure of the erstwhile Aam Aadmi Party (AAP) government led by Arvind Kejriwal. The report covers the period April 2020 to March 2023.
Key Findings on EPF Trust Mismanagement
Audit Para 2.8 of the CAG report states that the DTC EPF Trust failed to invest surplus provident fund contributions on time between 2020-21 and 2022-23. The inaction — specifically, a failure to invest funds for one month — resulted in a potential interest shortfall of ₹5.50 crore, directly affecting the financial interests of DTC employees and other stakeholders.
The CAG report noted: 'The DTC EPF Trust failed to timely invest the surplus funds of the employees' provident fund contributions during the period April 2020 to March 2023, which resulted in a potential loss of interest of ₹5.50 crore.'
The audit body further recommended that the Trust designate officials with explicit responsibility for the timely deployment of surplus funds, as mandated under the relevant notification, to safeguard employee interests going forward.
Avoidable Payment of ₹5.63 Crore on Dewatering Works
A separate finding under Para 2.7 of the same report pointed to an avoidable expenditure of ₹5.63 crore related to dewatering works. According to the CAG, estimated quantities for three dewatering items deviated by between 108 per cent and 2,545 per cent during execution — variances the report attributed to errors in the original agreement quantities linked to subsoil water depth and multiplying factors.
'Not exercising financial prudence and due diligence in working out the estimated quantities resulted in enhancement of deviation for more than permissible as per agreement and led to making of avoidable payment of ₹5.63 crore,' the CAG report stated.
Reports Tabled on First Day of Monsoon Session
The tabling of two CAG reports was listed in the Business Advisory Committee agenda for the first day of the Monsoon Session of the Delhi Assembly. These are Report No. 01 of 2026 of the Comptroller and Auditor General of India for the year ended 31 March 2023, and Report No. 02 of 2026 on State Finances for the year 2024-25.
Broader Accountability Context
This is the latest in a series of audit observations targeting financial decisions made during the AAP administration in Delhi. CAG reports covering the AAP era have previously flagged irregularities across multiple departments, making the findings politically significant as the current dispensation seeks to establish a governance contrast. The EPF Trust lapses are particularly sensitive given that they directly affect the retirement savings of transport workers.
The Delhi government is now expected to respond formally to the audit observations, with the Assembly's Public Accounts Committee likely to take up the findings in the coming weeks.
Point of View
But the nature of the lapse — failing to deploy workers' provident fund contributions for a full month — signals a governance gap with direct consequences for DTC employees' retirement security. CAG findings of this kind carry weight precisely because they are not allegations but audit-verified observations. What is notable is the pattern: multiple CAG reports covering the AAP era in Delhi have now surfaced financial irregularities across departments. The real accountability test lies not in the tabling but in what the Public Accounts Committee does next — and whether the current government treats these findings as a political opportunity or a genuine reform mandate.
NationPress
7 Aug 2026
Frequently Asked Questions
What did the CAG report say about the DTC EPF Trust?
The CAG report found that the DTC EPF Trust failed to invest surplus provident fund contributions on time between April 2020 and March 2023, resulting in a potential interest loss of ₹5.50 crore. The audit recommended designating officials with clear responsibility for timely fund deployment.
Which government period does the CAG report cover?
The report covers financial years 2020-21 to 2022-23, a period when Delhi was governed by the Aam Aadmi Party (AAP) under Chief Minister Arvind Kejriwal.
What is the avoidable payment of ₹5.63 crore related to?
The ₹5.63 crore avoidable payment relates to dewatering works where estimated quantities deviated by 108% to 2,545% from the original agreement, due to errors in calculating subsoil water depth and multiplying factors. The CAG attributed this to a lack of financial prudence and due diligence.
When were these CAG reports tabled in the Delhi Assembly?
Both reports — CAG Report No. 01 of 2026 (for the year ended 31 March 2023) and Report No. 02 of 2026 on State Finances for 2024-25 — were tabled on 7 August 2026, the first day of the Delhi Assembly's Monsoon Session.
What action is expected following the CAG findings?
The Delhi Assembly's Public Accounts Committee is expected to examine the audit observations. The government is also required to formally respond to the CAG's recommendations, including the designation of officials responsible for timely EPF fund investment.
