Setback for Kejriwal govt, Delhi HC rules against CAG audit of discoms

New Delhi: In a setback for the Arvind Kejriwal government, the Delhi High Court on Friday allowed the pleas of three city discoms challenging the government's decision 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 allowed the pleas of Tata Power Delhi Distribution Ltd., BSES Rajdhani Power Ltd. and BSES Yamuna Power Ltd., implying the official auditor of the government cannot audit their accounts.

Meanwhile, Delhi chief minister Kejriwal said his government will file an appeal in the Supreme Court against the high court's decision and that they were committed to providing cheap electricity to the people of the national capital.

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 of their accounts.

The discoms had also challenged 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 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 CAG.

Earlier, the Delhi 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.

(With inputs from agencies)