CAG moves SC against delhi HC ruling

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The Comptroller and Auditor General of India (CAG) has moved Supreme Court against the Delhi High Court’s verdict quashing city government’s 2014 order asking the CAG to audit the accounts of three private power distribution companies here.

The Comptroller and Auditor General of India (CAG) has moved Supreme Court against the Delhi High Court’s verdict quashing city government’s 2014 order asking the CAG to audit the accounts of three private power distribution companies here.

“The CAG functions under the Constitution as an instrumentality for ensuring accountability and probity by placing its reports in the Parliament/Legislature and any interpretation that whittles or waters down the jurisdiction are contrary to the mandate under Article 149 and against principles of Parliamentary democracy…. Merely because a body is under the purview of a Regulator the mandate of CAG cannot be ousted,” the apex auditing body said.

Earlier, the high court had held “there can be no other audit by CAG at the instance of the state government when regulatory body, Delhi Electric Regulatory Commission (DERC), is already there to audit the accounts of discoms.
The NGO-URJA and Kejriwal government have already approached the Supreme Court against a high court verdict. The apex court has already listed their pleas for hearing on Monday.

Last year, the AAP-led government had ordered the CAG audit of discoms Tata Power Delhi Distribution Ltd (TPDDL), BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd, which supply power in Delhi, on grounds including that it has 49 per cent stakes in the discoms.

The NGO United RWAs Joint Action (URJA) had filed the PIL before the high court seeking order for CAG audit of the three discoms-TPDDL, BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd. The court had not agreed with the city government’s contention that the audit was ordered in public interest for determining the tariff.

“Determination of tariff is in sole domain of DERC which is well empowered to itself conduct the same or have the same conducted and the report of CAG audit of discoms has no place in the Regulatory Regime brought about by the Electricity Act and the Reforms Act”. The discoms are 51:49 per cent joint venture between the private companies and the Delhi government.

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