HC asks govt, CAG to respond on discoms' plea

The Delhi High Court today sought the response of the city government and CAG on the pleas of two power distribution companies seeking that no action be taken against them based on a draft report of the government auditor.
BSES Rajdhani and BSES Yamuna have moved the court aggrieved over the alleged "illegal and ultra vires" act of the Comptroller and Auditor General (CAG) of drafting and sharing with Delhi government its draft audit report.
The discoms sought before a bench of Chief Justice G Rohini and Justice Jayant Nath that they be provided with the entire 212-page draft report.

In the draft report, CAG has reportedly said the firms BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL), backed by Reliance Infra, and Tata Power Delhi Distribution Ltd had inflated their previously-incurred losses.
The CAG report has alleged that discoms manipulated consumer figures, bought costly power, inflated costs and suppressed revenue and favoured their group companies.
According to reports, CAG has also alleged that the discoms inflated their regulatory assets by nearly Rs 8,000 crore.

During the brief hearing, CAG counsel Rajeev Yadav told the court that the government auditor had only forwarded the report to government to seek its comments.

Yadav also said the government would in turn forward it to each of the discoms, the portions of report that pertains to them to get their comments.
He also placed before the court a letter sent to the Delhi government along with the report, in which CAG had sought that confidentiality of the document be maintained as the matter pertaining to audit of discoms was sub-judice.
Delhi government also told the court that the CAG had invited comments from it which has been given.
The government also said it was not going to act on the basis of the report as it is not the authority which would take action.