CAG has powers to scrutinise Government's performance: SC

Dismissing a plea challenging the Comptroller and Auditor General's power to conduct performance audit of coal block allocation and other issues, a bench of justices R M Lodha and A R Dave said the CAG is a constitutional authority entitled to review and conduct such audit on revenue allocations relating to the Centre, the states and the Union territories.

"CAG is not a munimji or an accountant or something like that... He is a constitutional authority who can examine the revenue allocation and matters relating to the economy," the bench told counsel Santosh Paul, who appeared for petitioner Arvind Gupta, head of an NGO, which had filed the petition.

 

The apex court brushed aside the petitioner's argument that the CAG had no Constitutional mandate to scrutinise the effectiveness or economic aspect of the Government's policy matters.

"Parliament is there to guide and correct the CAG. CAG is the principal auditor whose function is to go into the economy, effectiveness and efficiency of the use of resources by the government. If the CAG will not do, then who else will do it.

"Effective use of resources is the primary duty of the CAG. CAG shall examine all aspects about effectiveness, efficiency and economy. There is a full fledged mechanism to consider the CAG reports," Justice Lodha heading the bench observed (More)