The Uttar Pradesh government has ordered CAG audit of three industrial development authorities-Noida, Greater Noida and Yamuna Expressway-which are facing allegations of irregularities and corruption.
On the free power scheme, Deputy Chief Minister Manish Sisodia said the government will review power rates once the audit is over.
The audit seeks to verify if the equipment that the distribution companies claim exists physically is actually deployed on the ground.
This stand of the CAG will seriously prejudice the proceedings against the discoms, the counsel for TPDDL told the court.
The high court had upheld the validity of laws empowering CAG to conduct revenue audits of private telecom firms.
The court was hearing an intra-court appeal of the three discoms, which have challenged the January 24 order of a single-judge bench.
Capital Crisis Kejriwal threatens to cancel licences of discoms, claims tariff hike is blackmail.
Two meetings have been held so far between officials from the discoms, Delhi government and the CAG.
No time frame or methodology has been has been decided for the audit as yet, sources in the power department said.
Years before AAP govt’s decision, a residents’ group had moved court for CAG audit of power distributors.
CAG would examine the digital data and assess how scientifically and correctly this was being done.
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The latest audit shows apex govt auditor intends to venture more into areas of policy.
This means critical issues like capital investments made by RIL could come under inspection.
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