Discoms not cooperating on audit, reiterates CAG

Reiterating its earlier stand, the Comptroller and Auditor General (CAG) of India has told the Delhi High Court that discoms were not cooperating

Reiterating its earlier stand, the Comptroller and Auditor General (CAG) of India has told the Delhi High Court that discoms were not cooperating with the audit of their books. Taking note of CAG?s contention, the High Court said it will consider the matter after a complaint is filed formally before it. The court has also directed the three discoms to file a rejoinder to the Delhi government?s reply in the matter.

Earlier on March 3, the Delhi government had leveled the same charge against Reliance Infrastructure-owned BSES Yamuna and BSES Rajdhani, and Tata Power Delhi Distribution (TPDDL) before a division bench of the High Court. The government had told a bench comprising Acting Chief Justice BD Ahmed and Justice S Mridul that the discoms were not only being uncooperative in the audit, but also refusing to furnish the requisite documents.

Additionally, the national auditor had pointed out that the discoms were in contempt of the single judge?s order by being uncooperative with the audit.

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On January 24, the Delhi High Court had refused to stay a January 7 order of the Arvind Kejriwal-led Delhi government directing the CAG to carry out an audit of the three discoms. The court had also directed the national auditor to refrain from submitting a final audit report till the disposal of the matter.

With a 49% stake in the discoms, the Delhi government is represented on their boards by the chief secretary, and finance and power secretaries. The discoms have a multi-layered system of accounting, wherein they are audited internally as well as externally by statutory auditors empanelled with the CAG as well. Further, the discoms? accounts are also approved by their boards, which include secretaries in the government and independent directors.

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First published on: 20-03-2014 at 05:38 IST
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