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Government, CAG move Supreme Court over order on discoms

The Delhi government and the Comptroller and Auditor Generalof India have moved the Supreme Court against a high court verdict quashing city government’s 2014 order asking the CAG to audit the account

The Delhi government and the Comptroller and Auditor Generalof India have moved the Supreme Court against a high court verdict quashing city government’s 2014 order asking the CAG to audit the accounts of three private power distribution companies. Officials said the matter is likely to be heard by the apex court on January 18. The high court in October had quashed the Delhi government’s petition for getting the accounts of the power discoms audited by the Comptroller and Auditor General of India for allegedly overcharging consumers.

The high court order had upheld the plea of Tata Power Delhi Distribution, BSES Rajdhani Power and BSES Yamuna Power against the Delhi government’s order dated January 7, 2014, ordering CAG scrutiny of their accounts.

The three discoms had opposed the order and maintained that they were private companies and not government entities and as such did not come within the purview of CAG.

Unfazed by the high court order, Delhi chief minister Arvind Kejriwal had described it as a “temporary setback” for the people. A senior government official said that on April 17, 2014, the Supreme Court had made it clear that wherever public money or resources are involved, CAG audit is “required.” CAG is a constitutional institution under Article 148 of the Constitution of India. Once it accepts reference for an audit, it must be respected, the official said.

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