The Delhi Government on Thursday told the Delhi High Court that the Comptroller and Auditor General (CAG) had the power to audit the accounts of power distribution companies in the Capital and affirmed that it would only bring them under public audit rather than stopping their functioning or interfering with their work.
The submission was made before a Division Bench comprising Chief Justice G. Rohini and Justice R.S. Endlaw, which was hearing a bunch of petitions, including appeals moved by three discoms challenging the Single Bench order refusing to stay the Delhi Government’s decision to have their accounts audited by CAG.
Senior advocate Rajiv Dhavan, appearing for the Delhi Government, said the discoms had only raised the plea of lack of jurisdiction of CAG and not stated what prejudice would be caused to them by the audit. The Government held 49 per cent stake in discoms and had also infused capital in them, he pointed out.
The decision to carry out CAG audit of discom accounts was taken by the State Cabinet in 2011, much before the Aam Aadmi Party Government took over in Delhi, said the counsel.
The Bench was hearing the appeals filed by Tata Power Delhi Distribution Limited, BSES Rajdhani Power Limited and BSES Yamuna Power Limited. A public interest litigation filed by a non-government organisation, United RWAs Joint Action, seeking the audit of discoms’ audit by CAG is also before the Court.
The discoms have moved the Division Bench of the High Court against the January 24 decision of the Single Bench refusing to stop CAG audit of their accounts. The Single Bench had asked the appellants to “fully cooperate” with the CAG in the audit process.
In their appeals, the discoms have contended that the Delhi Government’s decision asking CAG to audit their accounts was illegal on several counts. The Government had violated the statutory and constitutional provisions to fulfil the promise made by the ruling AAP during its election campaign, they said.
