The Delhi government and the Comptroller and Auditor General of India have moved the Supreme Court against a high court verdict quashing city government’s 2014 order asking the CAG to audit the accounts of three private power distribution companies.
The apex court has already listed an appeal of an NGO on the issue for hearing on January 18.
The AAP-led government had ordered the CAG audit of discoms Tata Power Delhi Distribution Ltd (TPDDL), BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd, which supply power in Delhi, on grounds including that it has 49 per cent stakes in the discoms.
Earlier, NGO United RWAs Joint Action (URJA) had filed the appeal against the dismissal of its PIL by the high court.
The high court had termed as “populist” the decision of the AAP government to have CAG audit of TPDDL, BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd.
There can be no other audit by CAG at the instance of the state government when regulatory body, Delhi Electric Regulatory Commission, is already there to audit the accounts of discoms, it had said.
“Such populist measures without considering the ultimate advantage thereof, not only end up being contrary to public interest but also put unnecessary burden on the courts,” the high court had said.
The court had made the observations while quashing the Delhi government’s January 7, 2014 directive to carry out an audit of the three discoms by the CAG.
It had also not agreed with the government’s contention that the audit was ordered in public interest for determining the tariff, saying “determination of tariff is in sole domain of DERC which is well empowered to itself conduct the same or have the same conducted and the report of CAG audit of discoms has no place in the Regulatory Regime brought about by the Electricity Act and the Reforms Act”.
The discoms are 51:49 per cent joint venture between the private companies and the Delhi government.