Private CAs, auditors of BCCI cannot judge managerial decisions to which CAG is party: Plea filed in SC seeking modification of 2016 order

The Comptroller and Auditor General (CAG) has filed an application in the Supreme Court seeking modification of the Court's 2016 order so that it can undertake financial, compliance, and performance audit of the Board of Control for Cricket in India (BCCI) and state cricket associations..The CAG, in its application, has sought modification of the order dated July 18, 2016, by which the Apex Court had accepted the recommendations of the Justice RM Lodha Committee, including the one regarding inclusion of a nominee of the CAG in the Apex Council of the BCCI and also in the Governing Council of the Indian Premier League (IPL)..It said that out of the 35 state cricket associations, only 18 have requested nominations till date. These have been made by the CAG, while the remaining 17 are yet to approach the nominating officers..The application filed through Advocate Gaurav Sharma further states that at present, BCCI is audited by Chartered Accountants (Was) or private auditors chosen by the Board. In case there is a dispute as regards quality or other aspects of the audit, CAG is called upon as a last resort, it is stated..However, the plea states that being a party to the decisions taken by the Apex Council of the BCCI/IPL Governing Council would effectively preclude CAG from undertaking any subsequent audit or discharging any supervisory role over the quality of audit done by CAs or private auditors. The application reads,.“Ironically, CAs or private auditors would sit in judgment over the managerial decisions to which CAG’s nominee is a party.”.From December 4, 2019 till today, the BCCI has convened two Apex Council meetings and three IPL Governing Council meetings, and the CAG nominee has attended them, the application states..Urging the Supreme Court to reconsider its 2016 directive, the CAG states that "to ensure better redressal of concerns of the court and also to ensure more effective implementation of the recommendations of Justice Lodha committee," the Court ought to modify the 2016 directive. .It said that being the supreme audit institution of India, the CAG's specialization is audit."Therefore, the CAG may be considered for intervention in the affairs of BCCI/state cricket associations only for the purpose of audit - either as a routine e.g. annual, biennial etc or as and when directed by this court.".The application further reads,."Needless to say, the cost of audit will be charged to the BCCI/state cricket associations and deposited to government account, as is being done in certain cases where audit of the statutory corporations such as Airports Authority of India, Food Corporation of India, National Highways Authority of India etc is undertaken by the CAG."Application filed in Supreme Court.CAG further states that if the modification is made, its oversight role, as envisaged by the Apex Court, would be fulfilled. Thus, it would help bring about more transparency, efficiency and effectiveness in the functioning of the BCCI and state cricket associations, which would be consistent with the recommendations of the Lodha Committee, as well the 2016 order..[Read the application]