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Three teams from the office of the Comptroller and Auditor-General of India (CAG) visited the offices of the three Delhi private power distribution companies on Monday, to start a scrutiny of their financial accounts.
The CAG audit of the discoms’ finances was to begin on Monday. The maiden visit lasted a few hours, with the Terms of Reference of the audit yet to be firmed up, said an executive close to the development.
However, a CAG official said the audit came to a halt after the discoms sent a letter to the national auditor alleging the “audit was not legal”.
“The government will now have to secure an order from the court allowing the process to begin,” he said. The issue is currently pending in the high court here.
Delhi Chief Minister Arvind Kejriwal had asked for the audit, alleging the three discoms – Reliance Infrastructure-owned BSES Yamuna, BSES Rajdhani and Tata Power Delhi Distribution – manipulate accounts to seek rate increase.
The discoms have contested the charges and challenged the CAG’s authority to conduct such an audit. Over the past two weeks, the discoms have disputed the government’s claim of revenue from aggregate technical and commercial loss reduction. They have also rejected the allegations of undisclosed revenue from surplus power.
The audit will cover the period since 2002, when power distribution was privatised in Delhi, and could take up to six months.
Earlier this month, Kejriwal had slashed power rates for Delhi’s 2.8-million domestic consumers by half through a 50 per cent subsidy, which would cost the Delhi government Rs 260 crore in the current quarter ending March. The result of the audit could impact the subsidy handout.
