Flagship Promises

Comprehensive CAG Audit of Power Distribution companies (discoms).


By: Akshay Chooramani

In the first stint of the Kejriwal led government, CAG audit was ordered. However, post the resignation of the Aam Aadmi Party, the audit was put on hold. The Discoms were reluctant to furnish documents to CAG. However after coming back to power in Feb 2015 audit process was expedited by nudging the discoms to cooperate and furnish all necessary documents to the CAG. CAG report found, prima facie, financial misappropriations worth 8000 crores.However, the power companies managed to get a stay on the CAG report from Delhi High Court on the technical ground and the matter is currently pending with the Supreme Court for more than 3 years.

With matter pending in Supreme Court, the AAP government asked Delhi Electricity Regulatory Commission (DERC) which is quasi-judicial body to conduct a complete audit of the physical assets of the discoms and their distribution system in the capital by CAG empanelled auditors. The audit included verification of claims of discoms over a period of seven years beginning from 2004-2005. This is the first time such an audit was ordered by DERC, previous audits were mainly restricted to physical assets of the discoms which included infrastructure set up by discoms and the cost involved in it.

Since the promise of CAG Audit has been fulfilled, along with the additional audit by DERC the performance of the government has been classified as “Fulfilled”. 


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