In a major relief to the three power distribution companies in the Capital, the Delhi High Court on Friday quashed the Aam Aadmi Party government’s decision to get their accounts audited by the Comptroller and Auditor General (CAG). The Court allowed writ petitions of discoms challenging the government’s move.
A Division Bench of Chief Justice G. Rohini and Justice R.S. Endlaw ruled that the CAG’s audit process carried out so far as well its draft report would be “non-est” with no bearing any more. The Court accepted the discoms’ contentions about procedural lapses by the Delhi government.
Delhi government, however, said it will appeal against the High Court in the apex court.
"Del HC order is a temporary setback for the people of Del. Del govt will soon file an appeal in SC," chief minister Arvind Kejriwal tweeted.
In their writ petitions, Tata Power Delhi Distribution Limited, BSES Rajdhani Power Limited and BSES Yamuna Power Limited had challenged the AAP government’s January 7, 2014 decision with the contention that they were not the government entities and were beyond the CAG’s jurisdiction in their capacity as private companies.
The discoms also raised a plea that the Delhi government had violated the principles of natural justice and failed to give them preliminary hearing.
The Bench also dismissed a public interest litigation moved a non-government organisation, United RWAs Joint Action (URJA), which had sought an audit of the discoms' accounts by CAG.
The AAP government had ordered CAG audit of the three discoms amid allegations that they had shown inflated expenses. The government argued before the Court that the discoms, working as joint venture between private companies and the government in the ratio of 51:49, were discharging public function.
