Friday, January 24, 2014

Delhi High Court declined stay on the Delhi Government’s order for CAG audit of power distribution companies

Delhi High Court declined stay on the Delhi Government’s order for audit of power distribution companies
A Delhi High Court on Friday declined stay on the Delhi government’s order calling for an audit of power distribution companies. The court asked the Comptroller and Auditor General (CAG) to not submit its final report till the case is heard. The apex court also directed the power companies to cooperate fully with the audit.

However, the power companies allege that the audit is a political ploy and that the order was passed with ‘malice on law’ without giving the DistComs an opportunity to be heard. The companies also argued that under the Electricity Act 2003, the LG should have initiated the file instead of agreeing with the government decision.

Earlier in the day, appearing for the power distribution companies of Delhi, senior lawyer and BJP leader Harish Salve called the AAP government’s order for an audit of these companies a ‘shaikh chilli order’ made without application of mind.