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SC rejects power discoms’ plea for hearing of CAG audit by Constitution bench

LiveMint logoLiveMint 03-07-2017 Priyanka Mittal

New Delhi: The Supreme Court on Monday rejected the plea of power discoms that had sought setting up a constitution bench for hearing the validity of an audit by the Comptroller and Auditor General (CAG) of India.

A division bench headed by justice J. Chelameswar said that the matter would be heard by a regular bench and refused to constitute a constitutional bench for the same.

Three discoms had challenged the Delhi government’s audit directive, contending that the office of CAG was not empowered to scrutinize the accounts of private firms under Section 20 of the CAG Act.

In January 2014, the Aam Aadmi Party-led Delhi government ordered the audit of the three discoms—BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd and Tata Power Delhi Distribution Ltd—by the CAG.

The apex court was responding to a petition filed by the United RWA (Resident Welfare Association) Joint Action, a non-governmental organisation, against the Delhi high court order that quashed the state government’s directive for a CAG audit of the three discoms.

The matter will be heard on 8 July.

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