In his Special Report filed before the Lieutenant-Governor, Delhi Lokayukta Manmohan Sarin has said that there is a watertight case against the Chief Minister in the matter of falsely claiming before the 2008 Delhi Assembly elections that 60,000 houses were ready under the Rajiv Ratan Awas Yojana and the process of allotment would begin soon.

In a “substance of the case” outlined on his official website, Justice Sarin has stated that the complainant, Sunita Bhardwaj, had in her complaint filed in November 2009 claimed that the Chief Minister had made the misrepresentation in a message under her name. The message also contained her photograph and that of Minister for Urban Development Raj Kumar Chauhan. It was alleged that the respondent was actuated by improper motives for personal and party's gain and the false and misleading information was given for securing advantage in the ensuing elections in October, 2008.

In her response, Ms. Dikshit had alleged that the complaint was part of a political conspiracy of a rival political party to tarnish her image. She claimed that the complainant has wrongly translated the message to give it a wrong and misleading meaning. She produced an English translation of the message with her reply purporting it to be from the official translator of Delhi Government's Language Department.

The Chief Minister had also claimed that the correct translation was that “Houses were to be constructed----”. She filed the said translation duly verified in her reply as true to her knowledge, and accused the complainant of filing a false and misleading translation, to get the notice issued.

Ms. Dikshit also claimed that there were indicators in the remaining clauses of the Registration Booklet or subsequent advertisements through which prospective purchasers would have known that the houses were yet to be constructed.

The Lokayukta said on inquiry it was found that the Chief Minister had failed to act in accordance with the norms of integrity and conduct expected of a public functionary.

It was found that 60,000 houses were neither ready for being handed over or otherwise built and as on February 24, 2010 only 7,635 houses had been built and land acquired only for 9,439 houses.

The Lokayukta said it was also found that the English translation filed by the Chief Minister claiming it to be from the Language Department's official translator was in fact from Transprint India, a private agency, who was claimed to be an approved agency.“The translation filed as true to her knowledge was found to be a wrong translation on obtaining the version from the official translator of High Court of Delhi which exposed the falsity of the respondent's claim, in fact, such a plea and defence, verified as true to her knowledge, actually aggravate the misconduct,'' he said.

On July 18, 2011, the Lokayukta had recommended to the President , the competent authority in the instant case, to administer a caution to the Chief Minister to be careful in future, in view of the present instance.

However, the President in her order, communicated by the Ministry of Home Affairs on November 11, 2011, had stated that “After weighing the facts and circumstances of the case, it was found that there was no evidence of any mala fide intention on the part of Chief Minister''.

The Lokayukta said “in the instant case, the respondent (Chief Minister) has owned the message and, in fact, sought to justify it by a false translation of her message. It was nobody's case that there was any inadvertent error on the part of the respondent in releasing the message or she had not approved of the same as per her specific directions.''

In view of this background, the Lokayukta said the decision was taken to file a Special Report with the Lieutenant-Governor.