Supreme Court Stays CAG Audit Of Delhi Private Discoms
ECONOMY & POLICY

Supreme Court Stays CAG Audit Of Delhi Private Discoms

The Supreme Court on Friday stayed a Comptroller and Auditor General (CAG) audit ordered by the Delhi government of three private power distribution companies, and directed a status quo on any appointment or recovery measures until a regular bench hears the matter on 15 July. The partial bench of Justices KV Viswanathan and Shree Chandrashekhar questioned the legality of the Delhi Electricity Regulatory Commission (DERC) decision to appoint the CAG.

The bench also stayed an Appellate Tribunal for Electricity (APTEL) direction that had required appointment of an independent chartered accountant for the audit, restraining the CAG from proceeding in the interim. DERC has appealed against an April APTEL ruling that held a CAG audit to be contrary to the statutory framework and directed the regulator to engage a chartered accountant.

The dispute follows government concern over accumulated regulatory assets, which it places at Rs 385 billion (bn). An earlier judgment had assessed the liabilities at Rs 272 bn and directed liquidation within three years. The liabilities were recorded as Rs 129.93 bn for BSES Rajdhani Power Ltd (BRPL), Rs 84.19 bn for BSES Yamuna Power Ltd (BYPL) and Rs 57.87 bn for Tata Power Delhi Distribution Ltd (TPDDL) as on 31 March 2024.

The Solicitor General said the lieutenant governor (LG) had sanctioned the audit and that the government sought to avoid saddling consumers with recovery before an audit established how liabilities arose. Counsel for one distribution company argued that the audit and recovery are distinct and that a roadmap for liquidation runs through to 2031. The Delhi government had directed a strict CAG audit for three months with a provision for extension and said this was the first CAG review of private discoms since privatisation in 2002. The court maintained the status quo and listed the matter for hearing by a regular bench.

The Supreme Court on Friday stayed a Comptroller and Auditor General (CAG) audit ordered by the Delhi government of three private power distribution companies, and directed a status quo on any appointment or recovery measures until a regular bench hears the matter on 15 July. The partial bench of Justices KV Viswanathan and Shree Chandrashekhar questioned the legality of the Delhi Electricity Regulatory Commission (DERC) decision to appoint the CAG. The bench also stayed an Appellate Tribunal for Electricity (APTEL) direction that had required appointment of an independent chartered accountant for the audit, restraining the CAG from proceeding in the interim. DERC has appealed against an April APTEL ruling that held a CAG audit to be contrary to the statutory framework and directed the regulator to engage a chartered accountant. The dispute follows government concern over accumulated regulatory assets, which it places at Rs 385 billion (bn). An earlier judgment had assessed the liabilities at Rs 272 bn and directed liquidation within three years. The liabilities were recorded as Rs 129.93 bn for BSES Rajdhani Power Ltd (BRPL), Rs 84.19 bn for BSES Yamuna Power Ltd (BYPL) and Rs 57.87 bn for Tata Power Delhi Distribution Ltd (TPDDL) as on 31 March 2024. The Solicitor General said the lieutenant governor (LG) had sanctioned the audit and that the government sought to avoid saddling consumers with recovery before an audit established how liabilities arose. Counsel for one distribution company argued that the audit and recovery are distinct and that a roadmap for liquidation runs through to 2031. The Delhi government had directed a strict CAG audit for three months with a provision for extension and said this was the first CAG review of private discoms since privatisation in 2002. The court maintained the status quo and listed the matter for hearing by a regular bench.

Related Stories

Gold Stories

Next Story
Real Estate

A Concrete Statement in Jubilee Hills

The Jubilee Hills residence is an exploration of structure as architecture, where mathematical precision, exposed concrete, and engineering discipline come together to create a bold and enduring built form.Constructed with Blushfarbe, HAACE’s bespoke concrete finish, the project demanded exceptional control, as every visible structural element was also required to perform as the final architectural surface. Deep reinforced concrete roof frames extend into the vertical façade, while precision-cast fluted surfaces, rhythmic vertical fins, circular columns, and a cantilevered staircase create ..

Next Story
Infrastructure Energy

Hindustan Zinc raises renewable power share to 22 per cent

Hindustan Zinc has increased the share of renewable energy in its overall power consumption to 22 per cent, up from around 18 per cent in FY26, as it advances towards sourcing 70 per cent of its power requirements from renewable sources by FY28.During FY26, the company generated 892 million units of green power, up from 632 million units in FY25. It has also expanded its round-the-clock renewable power arrangement with Serentica Renewables from 450 MW to 530 MW to support the transition.Hindustan Zinc is strengthening its renewable energy portfolio through solar, wind and energy storage soluti..

Next Story
Resources

Crompton unveils new brand identity and super-premium platform

Crompton Greaves Consumer Electricals Ltd. has unveiled a new master brand identity as part of its Crompton 2.0 transformation, alongside the launch of its super-premium brand Crompton Rhion and the strengthening of its Energion platform.The refreshed identity introduces Cephyr, a new emblem inspired by sapphire and Zephyrus, the Greek wind, representing Crompton’s evolution towards a design-led, consumer-centric brand. The new brand promise, ‘Amazing, Every Day’, is supported by a new sonic identity that will be rolled out across advertising, digital platforms, products and retail envir..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement