No CAG audit on Delhi’s power companies – Delhi High Court

In what is being seen as a setback to the Arvind Kejriwal-led Delhi Government, the Delhi High Court today allowed a batch of writ petitions filed by Delhi’s power distribution companies..The companies, including the likes of Tata Power, BSES Yamuna and BSES Rajdhani had challenged the government’s decision of having the CAG (Comptroller & Auditor General) audit their accounts..The Delhi discoms which operate on a 51:49 per cent joint venture with the Delhi Government, had challenged the government’s order of January 7, 2014 which had sanctioned a CAG audit..The Bench of Chief Justice G Rohini & Justice RS Endlaw held that the petitions of the discoms were “allowed” and also said that the audit conducted thus far as well as the CAG’s draft audit report would be “non-est”, i.e. have no bearing whatsoever..While the Court allowed the discoms plea, it dismissed yet another connected petition filed by an NGO, United RWAs Joint Action which had sought a CAG audit into the accounts of the aforesaid companies..Not hiding his displeasure over the High Court’s decision, Delhi Chief Minister Arvind Kejriwal immediately tweeted about the government’s intention to appeal against the order before the Supreme Court..The primary challenge in the discom’s pleas was that they were private companies and therefore, fell outside the purview of the CAG’s jurisdiction. The companies had also invoked Section 20 of the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971 to demonstrate that the CAG was not empowered to audit accounts of private firms..The government had countered that argument in Court by stating that since the Delhi Govt had a 49% stake in the companies and was infusing operational capital, the CAG audit was legally permissible.