The Delhi High Court on Friday quashed the AAP government’s decision to get the accounts of three private power distribution companies audited by the Comptroller and Auditor General (CAG).
“We have allowed the petitions of the discoms,” a bench of Chief Justice G Rohini and Justice RS Endlaw said. They clarified that the audit carried out so far as well as the draft report of the CAG would have no bearing anymore.
The discoms – Tata Power Delhi Distribution Ltd (TPDDL), BSES Rajdhani Power Ltd, and BSES Yamuna Power Ltd – had challenged the AAP government’s January 7, 2014 decision ordering a CAG audit.
The discoms had challenged an order of a single HC judge who had refused to stall the CAG audit. The judge, in his January 24, 2014 order, had also asked the discoms to “fully cooperate with CAG in the audit process”.
While allowing the discoms’ pleas on Friday, the court dismissed a PIL filed by NGO United RWAs Joint Action (URJA) which had sought an audit of the discoms’ accounts by the CAG.
Earlier, the city government had told the court that a CAG audit of the private discoms was necessary as these companies discharged “public function”. The discoms are a 51:49 percent joint venture between the private companies and the Delhi government.
The government had said it was not trying to stop their (discoms’) functioning or interfere but was only trying to bring them under public audit.
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