LG gives consent to Delhi govt’s special audit of power subsidy given since ’16-17

The Delhi government, on March 27, announced an audit of the subsidy given to discoms through CAG-empanelled auditors to ascertain how the money was being used

Amid the ongoing tussle over power subsidy, Delhi lieutenant governor VK Saxena gave his consent to the Delhi government to carry out a special audit of the subsidy amount disbursed to discoms since 2016-17.

LG VK Saxena expressed surprise that the government had failed to audit the ₹13,549 crore given to discoms over the past six years. (PTI)

The Delhi government, on March 27, announced an audit of the subsidy given to discoms through CAG-empanelled auditors to ascertain how the money was being used and if there were any discrepancies. While allowing the government’s proposal to audit the subsidy released to discoms between FY 2016-17 and 2021-22, the LG emphasised that the audit of huge amounts of public money should be conducted by the CAG.

Saxena also expressed surprise that the government had failed to audit the ₹13,549 crore given to discoms over the past six years.

“...Public funds to the tune of ₹13,549 crore have not been audited for the past six years and have been passed on to private discoms without any substantive scrutiny as to whether the subsidies meant for the poor are reaching the targeted population. It has surprised me that it has taken the government six years to finally invoke its power under Section 108 of the Electricity Act, 2003 to issue directions to the DERC (Delhi Electricity Regulatory Commission) to conduct special audit, instead of perfunctorily taking Cabinet decisions to this effect for the last six years and conveying it to the DERC, but to no avail,” wrote LG Saxena in the file noting to chief minister Arvind Kejriwal.

He said that the government had been perfunctorily asking DERC to conduct the audit since 2015 through cabinet decisions, though it could have invoked Section 108 of the Electricity Act, 2003. Saxena added that despite the provisions in the Act that empowered DERC to get discom accounts audited, the government had failed to ensure that DERC followed its mandate.

“What is even more astounding is the fact that even after the proposal to get special audit done by the DERC by invoking Section 108 of the Electricity Act, 2003 was much belatedly put forward by the department in December, 2022, the same was turned down by the then deputy chief minister on January 27, 2023,” the LG added in the file noting to chief minister Arvind Kejriwal.

In his note to the chief minister, Saxena reiterated his stand that power subsidy should be provided to the poor, pointing out that amounts being given to discoms should be audited to ensure non-pilferage. Saxena said that subsidies are public funds collected as revenue from residents and hence it was the government’s responsibility to ensure that the benefits reached targetted populations without pilferage in the favour of vested interests.

“Foolproof audit of the same (subsidy) should have been ensured and the fact that it has not been done till now, exhibits an extremely casual attitude on part of the government in expending thousands of crores of public money,” stated Saxena.

The LG also said that the Delhi government had not given any details of the efforts it had taken to expedite its appeal in the Supreme Court against a high court order quashing CAG audit of discoms, which has been pending for more than seven years.

A spokesperson of the government declined to comment on the issue.