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AAP government violated laws to conduct CAG audit of discoms: Tata Power to HC

Tuesday, 22 July 2014 - 6:50pm IST | Agency: PTI

Aam Aadmi Party had pre-decided to have CAG audit of private discoms and its government later violated statutory and constitutional provisions to fulfill the poll promise, Tata Power Delhi Distribution Ltd (TPDDL) today told the Delhi High Court.

"One particular party decided in its election manifesto that it will decrease power tariff and will conduct CAG audit of all three private discoms... "When you are hell-bent to achieve a particular objective, then you do not follow the statutory and constitutional provisions," the counsel for Tata Power told a bench of Chief Justice G Rohini and Justice R S Endlaw said.

The court is hearing a batch of petitions, including appeals filed by three private discoms, against the order of a single judge refusing to stay Delhi government's decision to have CAG audit of their accounts.
Besides the plea of TPDDL and Reliance Anil Dhirubhai Ambani Group firms, BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd, the bench is also hearing a PIL filed by NGO United RWAs Joint Action, seeking CAG audit of the discoms' accounts.

Senior advocate A M Singhvi, appearing for TPDDL, started advancing arguments on the plea saying Delhi government's decision asking the Comptroller and Auditor General of India (CAG) to audit discoms's accounts is "patently" illegal on many counts.

Citing a constitutional provision, he said in this particular case, the Lt Governor was not bound to act on the "aid and advice" of the state government but should have applied his mind in exercise of the discretionary power. He also sought to distinguish between the telecom firms which have been subjected to CAG's scrutiny by decisions of the High Court and the Supreme Court and the discoms.

In the case of telecom firms, there is PPP (public private partnership) enterprise and the private firms have to share the revenue with the government, he said, adding that "but here the discoms is a private firm and moreover, there is no such arrangement of revenue-sharing." 




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