She was appointed as the Lieutenant Governor of Puducherry in 2016

After the Bhartiya Janta Party (BJP) won a landslide victory in the 2014 Lok Sabha (central) elections, Dr. Kiran Bedi joined the party in 2015. She ran as the party's Chief Ministerial candidate in the 2015 Delhi Assembly Election but lost. President of India Pranab Mukherjee appointed her the 24th Lieutenant Governor of the union territory of Puducherry on May 22, 2016. Kiran Bedi took the initiative in her new position to open the gates of Raj Nivas (the Governor's home) to the public, transforming it into the "People's Nivas." She began an 'Open House' approach in which members of the public could come to Raj Nivas from Monday through Wednesday at 5 p.m. to meet the Lieutenant Governor and have their concerns addressed.

Dr. Kiran Bedi's project "Mission Water Rich Puducherry" is one of her most notable accomplishments as Lieutenant Governor of Puducherry. When she learned that the Public Works Department (PWD) lacked the finances to de-silt water canals and drains, she enlisted the help of the community through CSR and connected contributors with JCB machine contractors. She then de-silted the channels on short notice. She has also implemented various best practices relating to Management Lessons in Puducherry as the Lieutenant Governor, which she recently detailed at the 50th Governors Conference in Delhi. Each of these methods, from financial prudence to enlisting community support and holding an open house, has aided in the huge development of Puducherry.