The increasing complexity of urban governance has made institutional coordination a critical determinant of effective public policy implementation, particularly in metropolitan regions with multiple governing authorities. Delhi, as the National Capital Territory of India, presents a distinctive governance framework where administrative responsibilities are shared among the Government of NCT Delhi, the Union Government, the Lieutenant Governor, municipal bodies, and several statutory agencies. While this multi-layered institutional arrangement is intended to balance national and local governance, it has also created significant challenges in policy coordination, accountability, and administrative efficiency. This study examines how fragmented governance influences inter-agency coordination and affects the implementation of urban public policies in Delhi. The research adopts a qualitative and analytical approach, relying on secondary data collected from constitutional provisions, government reports, policy documents, judicial decisions, and peer-reviewed academic literature. It analyses selected policy sectors, including air pollution control, urban flooding, Yamuna River management, and urban infrastructure, to understand how institutional interactions shape governance outcomes. The findings reveal that many governance challenges in Delhi are rooted not in the absence of policy initiatives but in fragmented institutional arrangements, overlapping administrative responsibilities, and inadequate coordination among implementing agencies. These structural limitations contribute to delays in decision-making, inconsistent policy execution, and reduced public accountability. The study argues that strengthening collaborative governance, clarifying institutional roles, improving inter-agency coordination, and promoting evidence-based policymaking are essential for enhancing governance effectiveness. The article contributes to the growing discourse on urban governance and public administration by demonstrating that institutional coherence is fundamental to successful policy implementation. It further offers policy recommendations aimed at improving administrative coordination, transparency, and governance capacity in Delhi. The findings may also serve as a useful reference for other metropolitan regions confronting similar governance challenges arising from complex institutional structures.