HC reserves order on CAG audit of discoms

New Delhi, March 4 (IANS) The Delhi High Court on Wednesday reserved its order on pleas filed by discoms challenging the decision of the government to have their accounts audited by the Comptroller and Auditor General (CAG).

A division bench of Chief Justice G. Rohini and Justice R.S. Endlaw reserved the order after all parties in the case concluded their arguments. The bench also reserved the order on a PIL seeking audit of discoms by CAG.

The Delhi government has contended before the court that CAG has "full right" to carry out a comprehensive audit of private discoms as the issue involves "public interest".

"Discoms are involved in distribution of power which is a public function and so they come under the fold of CAG audit," the Delhi government told the court.

The government sought unhindered access to accounts of discoms for the CAG to carry out a comprehensive audit.

The court was hearing a PIL seeking CAG audit of discoms and a bunch of petitions filed by the discoms including Tata Power Delhi Distribution Ltd., BSES Rajdhani and BSES Yamuna, against the previous Aam Aadmi Party government's order directing the CAG to look into their accounts.

AAP chief Arvind Kejriwal, during his first stint as Delhi chief minister in 2013, had asked the CAG to audit the three private firms. He alleged that the discoms were overcharging the consumers.

The discoms, which supply power to consumers in the capital, have argued that they are private companies and hence not in the ambit of a CAG audit.

They alleged that the Delhi government's order was a "political ploy".

The audit order by the government was passed with "malice in law", without giving the discoms an opportunity to be heard, they said.

The three private firms had come into being in 2002 when the then Delhi government decided to privatise power distribution.

Delhi discoms are a 51:49 percent joint venture between the private companies and the Delhi government.