Discoms welcome HC order on CAG audit

Reliance Infra-backed BSES discoms today welcomed Delhi High Court's order quashing the AAP government's decision to get accounts of three private power distribution companies audited by CAG.
In its reaction, the Tata Power Delhi Distribution Ltd said it maintained the highest level of transparency and that the company always acted in compliance with the law of the land.
"We welcome Delhi High Court's judgement. Power distribution is a regulated business with in-built checks and balances. The entire process is transparent and scrutinized by DERC on a regular basis," the BSES said in a statement.
It said the BSES always adhered to the highest standards of corporate governance and ethical practices, adding "We will continue to work closely with DERC, Delhi Government and other stakeholders to ensure reliable power and high class services to our consumers."

In its order, the Delhi High Court said once a regulatory body, DERC, has been set up with power to audit accounts of private power distribution companies, there can be no other audit by CAG.
The court made the observation and passed the order while quashing the Delhi government's January 7, 2014, direction to carry out an audit of the three discoms-- Tata Power Delhi Distribution Ltd (TPDDL), BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd-- by Comptroller and Auditor General (CAG) of India.
The Delhi government said it would challenge the verdict in the Supreme Court. The discoms had strongly opposed CAG audit of their accounts.