Discoms rest their case: CAG audit unnecessary

Three discoms have argued that as private entities, their accounts do not come under the jurisdiction of the CAG.

The ongoing battle in the Delhi High Court over the CAG audit of the three electricity distribution companies in the capital is nearing its end with the lawyers for the companies giving their final arguments to rebut the submissions made by the Delhi government in support of the audit.

The counsel for Tata Power Delhi Distribution Ltd (TPDDL) on Tuesday told the High Court that the Delhi government’s decision to ask the CAG to audit the three discoms was taken without reason. “The argument that the audit was done because ‘transparency is necessary’ is too general. There is no specific allegation or reasoning given,” senior advocate Dhruv Mehta said.

The three discoms have argued that as private entities, their accounts do not come under the jurisdiction of the CAG. During detailed arguments before the court of Chief Justice G Rohini and Justice R S Endlaw, Mehta argued that the CAG could only audit entities which received funds from the Consolidated Fund of India or consolidated funds of the state.

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The lawyer also argued that the order issued by the state government had sought to conduct a complete audit of the discoms since their inception, which was “arbitrary”.

The Delhi government had concluded its final arguments on Monday. The counsel for the two BSES discoms are now expected to put forward their arguments on Wednesday, following which the court is likely to reserve its judgment in the cases.

The pleas were filed last year by the discoms after the then AAP government asked the CAG to audit their accounts.

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