Sheila open to CAG audit of power firms | delhi | Hindustan Times
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Sheila open to CAG audit of power firms

Delhiites' demand to get power companies' accounts audited by the Comptroller and Auditor General (CAG) got a major boost on Wednesday with the state government saying it was open to recommending such an audit to the Centre.

delhi Updated: Jul 07, 2011 00:24 IST

Delhiites' demand to get power companies' accounts audited by the Comptroller and Auditor General (CAG) got a major boost on Wednesday with the state government saying it was open to recommending such an audit to the Centre.

The Delhi Electricity Regulatory Commission (DERC), headed by PD Sudhakar, has filed an affidavit in the high court saying it stands by the DERC's recommendation to the government last year that called for a CAG audit of the discoms - BSES Yamuna, BSES Rajdhani and North Delhi Power Ltd.

"If the DERC recommends, we will do it (refer it to Centre). We have to see if the CAG re-audits accounts," chief minister Sheila Dikshit told the Hindustan Times.

"The matter is being handled by the DERC now," she said.

Only the Centre has the authority to direct the CAG to take action.

"We stand by the recommendation made by my predecessor last year about such an audit," said Sudhakar.

"The Delhi government has to write to the home ministry to initiate the process."

The discoms have opposed such an audit, saying they are private companies not covered by the CAG.

But Sudhakar, after consulting the DERC secretary, said the Centre had the powers to order such an audit as it had done in the case of private telecom companies.

"Since the government has 49% stake in the discoms, an audit by the CAG will settle all controversies and give a reasonable assurance to the government about the shares received from discoms," the recommendation said.