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This is an archive article published on October 31, 2015

Setback for Arvind Kejriwal as Delhi HC says CAG cannot audit private discoms

The AAP govt had in 2014 ordered an audit of the three discoms amidst allegations that they had shown inflated expenses.

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The AAP government will move the Supreme Court against the Delhi High Court order today quashing its decision to get the accounts of three private power distribution companies audited by Comptroller and Auditor General (CAG).

Chief Minister Arvind Kejriwal today said that the HC order is a “temporary setback” for the people of the national capital and he is “committed” to provide cheap electricity to people.

“Delhi HC order is a temporary setback for the people of Delhi. Delhi government will soon file an appeal in SC.

“I am committed to providing cheap electricity to people of Delhi. Our fight will continue (sic),” Kejriwal said in a series of his tweets.

Earlier in the day, giving a major relief to the three electricity distribution companies in the city, the Delhi High court on Friday allowed their pleas challenging the AAP government’s decision to get an audit conducted by the CAG.

The bench of chief justice G Rohini and justice RS Endlaw has also dismissed a plea filed by NGO United RWAs Joint Action (URJA) which had filed a PIL seeking a CAG audit of the companies.

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Lawyers for the NGO state that the court has accepted the argument put forward by the discoms regarding procedural lapses by the Government. The discoms had alleged that provisions of section 20 of the CAG act and the principles of natural justice had been violated as they has not been given preliminary hearing.

The AAP govt had in 2014 ordered an audit of the three discoms amidst allegations that they had shown inflated expenses.

Tata Power Delhi distribution Ltd, BSES Yamuna Power and BSES Rajdhani Ltd had challenged the Delhi government’s decision to ask for a CAG audit of the discoms, on the grounds that they were not government entities and private companies were beyond the jurisdiction of the CAG.

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