New Delhi, Sep 2 (IANS): The Khadi and Village Industries Commission (KVIC) on Friday issued a letter clarifying the construction cost of the Khadi India Lounge in Mumbai, as well as the project designer's name put on the plaque.

The designer, Shivangi Saxena is the daughter of Delhi Lt Governor V.K. Saxena who has now been dragged into the ongoing face-off over alleged corruption and irregularities in many departments.

Reacting on the tweets of the L-G about his duty towards the people of Delhi, Aam Aadmi Party leader Sanjay Singh had asked whether he had given contract to his daughter without issuing any tender during his tenure as the chairman of KVIC.

"So many tweets against Arvind ji? Are you so scared? Should there also be zero tolerance against your corruption? People are telling many of your cases during KVIC tenure. Did you give contract to your daughter without tender? Does Modi ji know about this?" Singh said in a tweet.

On Friday morning, the Raj Niwas Delhi said on its Twitter handle: "The @kvicindia has issued a letter categorically stating that the entire cost of execution of project of its Mumbai Lounge was Rs 27.3 lakh, contrary to fake figures being touted by leaders of a Political Party."

The letter has been issued in the name of a media organisation who published the story. It has clarified that an expenditure to the tune of Rs 27.30 lakhs was incurred in the project and Shivangi Saxena designed the lounge free of cost.

The KVIC acknowledged her services by putting her name on the plaque.

"An expenditure to the tune of Rs 27.30 Lakhs approximately was incurred in executing the project. The aforementioned work was carried out by an empanelled contractor of KVIC. A plan for the design of the lounge was done by Shivangi Saxena, an upcoming interior designer, free of cost. Since, KVIC saved the cost of designing, as a gesture of goodwill, KVIC acknowledged her services by putting her name on the plaque," reads the letter.

The objective of setting up this lounge was to provide a stylish and in-vogue outlet for Khadi and Village Industries products produced by various stakeholders of KVIC, that would give them the much needed visibility, publicity and market reach, the letter further said.

In reference to the news article, the letter said that it "should have been published after taking our version also".