Delhi Power Discoms Not Cooperating in Audit, CAG Tells HC

Published: 19th March 2014 10:16 PM  |   Last Updated: 19th March 2014 10:17 PM   |  A+A-


The Comptroller and Auditor General (CAG) Wednesday informed the Delhi High Court that the three power discoms in the national capital were not cooperating in the audit of their finances.

The CAG complained to Justice Manmohan that the three discoms - Tata Power Delhi Distribution Ltd, BSES Rajdhani and BSES Yamuna - were not providing documents sought by its audit team.

The three discoms had moved the court challenging the Delhi government directive for a CAG audit of their finances.

The discoms said the audit was ordered by the government with a "predetermined mind".

The discoms which supply power to consumers in Delhi alleged that the Delhi government order was a "political ploy", and was passed without giving the discoms an opportunity to be heard.

The Delhi government, however, had earlier argued that it had 49 per cent share in each of the three discoms.

Justice Manmohan, while refusing to suspend the audit order, had earlier directed the discoms to cooperate with the auditor.

On Wednesday, the Delhi government came out in full support of the audit of the discoms and asked the high court to direct the discoms to "cooperate fully with the audit team constituted by the CAG and submit all necessary documents and information".

"It would be in larger public interest to have the accounts of the discoms audited by the CAG as it may bring out several possibilities for improving efficiency and reduction of financial requirement of these companies and thereby leading to an overall reduction of electricity tariffs for the consumers of Delhi," the government said.

Lt. Governor Najeeb Jung had Jan 1 directed the CAG to undertake the audit.

Then chief minister Arvind Kejriwal, soon after assuming office on December 28, met CAG Shashi Kant Sharma and urged him to audit the three private firms.

Kejriwal alleged that the discoms were overcharging the consumers.

On January 7, the Delhi government ordered an audit of the discoms by the CAG. The discoms then filed writ petitions before the Delhi High Court.

The court will hear the matter May 16 next.

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