HC to pronounce verdict on CAG audit of discoms today

New Delhi: power distribution companies which have challenged the AAP government’s decision to get their accounts audited by the Comptroller and Auditor General (CAG).

A division Bench of the court headed by Chief Justice G Rohini will also deliver its judgement on the discoms’ appeals against an order of a single judge of the high court who had refused to stall the CAG audit.

The single judge in his January 24, 2014 order had asked Tata Power Delhi Distribution Ltd (TPDDL), BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd to “fully cooperate with CAG in the audit process”.

Apart from the petitions of the discoms, the court would also give its verdict on a PIL filed by NGO United RWAs Joint Action (URJA) which has sought an audit of the discoms’ accounts by CAG. The discoms had approached the HC seeking stay of the draft audit report released by CAG recently.

The discoms had sought postponement and stay of the exit conference till they were provided with the detailed breakup of the alleged loss of over Rs 2,200 crore computed against them by CAG and given a reasonable time to respond to it. The high court, however, had refused to stay the exit conference which is a discussion between the discoms and CAG on the draft report. 

In its draft audit report, CAG had reportedly said that BSES Yamuna, BSES Rajdhani and Tata Power Delhi Distribution Ltd had inflated their previously incurred losses.

The report is also stated to have claimed that the discoms manipulated consumer figures, bought costly power, inflated costs and suppressed revenue, favouring their group companies. Earlier, the city government had told the court that a CAG audit of the private discoms here was necessary as these companies discharged “public function”. The discoms are a 51:49 per cent joint venture between the private companies and the Delhi government. The AAP government on January 7, 2014, had asked CAG to audit their accounts. It had said the government was not trying to stop their (discoms’) functioning or interfere in it but was only trying to bring them under public audit, as 49 per cent stake in the discoms was held by the Delhi government which has also infused capital in these companies.