Delhi HC reserves order on discoms' plea against CAG audit

Delhi High Court today reserved its order on private power distribution companies' plea against AAP government's decision to get their accounts audited by the Comptroller and Auditor General (CAG).
A bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw, which concluded hearing pleas of discoms --Tata Power Delhi Distribution Ltd (TPDDL), BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd-- said it will consider their petitions and pass an "appropriate order".
The discoms had moved the larger bench of the high court against its single judge's order of January 24, last year, which had refused to stall CAG audit asking them to "fully cooperate with CAG in the audit process".

Apart from the pleas of discoms, the division bench has also reserved its order on a PIL filed by NGO United RWAs Joint Action (URJA) seeking an audit of the discoms' accounts by CAG.
Yesterday, the discoms had claimed in the court that Aam Aadmi Party (AAP) government's order to get their accounts audited by the CAG has "no reason".
The discoms had cited Section 20 of the CAG Act to drive home their point that the top auditor was not empowered to audit the accounts of any private firm.

They had also referred to a 2002 communication of the CAG that said the discoms were not government entities.

The court was hearing a batch of petitions, including appeals filed by three private discoms challenging the January 7, 2014 order of the AAP government, which had asked the CAG to audit their accounts.
Delhi discoms are a 51:49 per cent joint venture between the private companies and the Delhi government.
Earlier, the city government had told the court that a CAG audit of the private discoms here was necessary as these companies discharge a "public function".
It had said the government was not trying to stop their (discoms) functioning or interfere in it but was only trying to bring them under public audit, as 49 per cent stake in the discoms was held by the Delhi government which has also infused capital in these companies.