Blow for Arvind Kejriwal government, Delhi High Court rules against CAG audit

Reacting to Friday's decision, Kejriwal said: "The "Delhi High Court order is a temporary setback for the people of Delhi". Delhi government will soon file an appeal in South Carolina. I am committed to providing cheap electricity to people of Delhi. "Our fight will continue".

Giving a major relief to the three electricity distribution companies in the city, the court on Friday allowed their pleas challenging the AAP government's decision to get an audit conducted by the CAG.

The discoms had additionally challenged an order of a single decide of the excessive courtroom who had refused to stall the CAG audit.

"We are unable to decipher anything, which DERC cannot and which CAG can unearth".

HC had permitted CAG to go ahead with its scrutiny despite claims by private telecom companies that they already had in place a mechanism of special audit as envisaged in the licence agreement between them and the department of telecommunications.

The bench of Chief Justice G ROhini and Justice RS Endlaw called the order "non-est".

In its draft audit report, CAG had reportedly said that BSES Yamuna, BSES Rajdhani and TPDDL had inflated their previously incurred losses.

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

They also sought to postpone the three-day exit conference which is a prelude to the government auditor finalizing its draft report on the discoms seeking a detailed break up of the figures of alleged losses under the report.

The authorities had stated it was not making an attempt to cease their (discoms') functioning or intrude in it however was exclusively making an attempt to convey them beneath public audit, as forty nine per cent stake within the discoms was held by the Delhi authorities which has additionally infused capital in these corporations.

- Once it is found that audit of accounts of DICOMs by CAG, even if were to find allegations against the DISCOMs to be true, can not under the prevalent legal regime serve the avowed object of bringing down the tariff, the question of this Court, in the PIL issuing a direction for such audit, whether under Section 20 or under any other provisions of the CAG Act does not arise.

In a similarly-worded statement, the Tatas power distribution arm said the company has maintained a strong track record of ethical practices and followed all stipulated norms and best practices, keeping the consumer interest at the focus.