CAG has full right to audit discoms: Delhi govt to HC

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SME Times News Bureau | 03 Mar, 2015
The city government told the Delhi High Court on Monday that the Comptroller and Auditor General (CAG) has "full right" to carry out comprehensive audit of private discoms as the issue involves "public interest".

"There is public interest in settling the issue and conducting the audit. Discoms are involved in distribution of power which is a public function and, so they come under the fold of CAG audit," advocate Rajiv Dhawan, appearing on behalf of the Delhi government, told the court.

"It would be in larger public interest to have the accounts of the discoms audited by the CAG as it may bring out several possibilities for improving efficiency," the government counsel said.

The government sought unhindered access to accounts of discoms for the CAG to carry out a comprehensive audit.

After hearing the arguments, the division bench of Chief Justice G. Rohini and Justice R.S. Endlaw posted the matter for Tuesday for further hearing.

The court was hearing a bunch of petitions filed by the discoms including Tata Power Delhi Distribution Ltd., BSES Rajdhani and BSES Yamuna, against the previous Aam Aadmi Party government's order directing the CAG to look into their accounts.

Kejriwal, during his first stint as Delhi chief minister in 2013, had asked the CAG to audit the three private firms. He alleged that the discoms were overcharging the consumers.

The discoms, which supply power to consumers in the capital, had earlier argued that they are private companies and hence not in the ambit of a CAG audit. They alleged that the Delhi government's order was a "political ploy".

The audit order by the government was passed with "malice in law", without giving the discoms an opportunity to be heard, they said.

The three private firms had come into being in 2002 when the then Delhi government decided to privatise power distribution. Delhi discoms are a 51:49 percent joint venture between the private companies and the Delhi government.