SC seeks reply from discoms over CAG audit
The Supreme Court on Monday sought the response of three private power distribution companies in the city to explain why an audit by the Comptroller and AuditorGeneral should not be conducted into their functioning since inception.
A bench of Justices Dipak Misra and N. V. Ramana issued a notice on special leave petitions against a Delhi high court order quashing the Delhi government’s decision to get the accounts of three private power distribution companies audited by CAG. The SLPs were filed by the Delhi government and United Raws Joint Action.
The high court while hearing petitions from discoms on October 30 had quashed the order dated January 7, 2014 bringing discoms under the ambit of the CAG audit. The high court has held that the determination of tariff is on the sole domain of DERC which is empowered to conduct the same. The court had also ruled that the audit of discoms has no place in the regulatory regime brought about by the Electricity Act and the Reforms Act.
The high court rejected the CAG audit on the ground that it would not serve any public purpose, as the scope of the CAG audit would only be tariff determination, which lies completely within the domain of Derc.
The SLPs said the high court had erred to appreciate the fact that the audit of the discoms for tariff determination in no manner assumed the power given to the Derc under the Derc Act, especially in light of the recommendations of the Derc vide letter dated 08.07.2010 for CAG audit and categorical stand taken by the Delhi government before the high court. The high court erred not to consider the allegations levelled and imputations made by the Derc, the PAC report and improper/ illegal tariff fixation.
The SLPs said it was a fit case in which the high court ought to have ordered for the CAG audit of discoms in public interest and also ordered a CBI probe of the allegations of data manipulation by the discoms and of the misconduct by the members of the Derc.