HC quashes Delhi Govt's decision to get power discoms' accounts audited by CAG

In a relief to private power distribution companies, the Delhi High Court on Friday quashed the Delhi government's decision to get the accounts of three companies audited by the Comptroller and Auditor General (CAG).

Tata Power Delhi Distribution Limited, BSES Rajdhani Power Limited and BSES Yamuna Power Limited had challenged the Aam Aadmi Party's (AAP) government's January 7, 2014, decision, ordering a CAG audit of their accounts.

The discoms had also challenged an order of a single judge Bench of the high court, who had refused to stall the CAG audit.

While allowing the discoms' pleas, the court dismissed a PIL filed by NGO United RWAs Joint Action, which sought an audit of the discoms' accounts by the CAG.

Earlier, the Delhi government had told the court that a CAG audit of the private discoms was necessary here as these companies discharged public function.

The government had said it was not trying to stop their functioning or interfere in it but was only trying to bring them under public audit, as 49 percent stake in the discoms was held by the Delhi government which has also infused capital in these companies.