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LATEST NEWS UPDATES | Discoms used Rs 5,000cr of Delhi govt funds: CAG -Pradeep Thakur

Discoms used Rs 5,000cr of Delhi govt funds: CAG -Pradeep Thakur

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published Published on Jan 18, 2016   modified Modified on Jan 18, 2016
-The Times of India

NEW DELHI: The three private power distribution companies (discoms) in the capital enjoyed funding of more than Rs 5,000 crore from the Delhi government since their inception on July 1, 2002, the Comptroller and Auditor General (CAG) has said while justifying its stand on auditing their accounts.

"Considering that the discoms enjoyed funding of more than Rs 5,000 crore from the state by way of equity, debt, transferred assets and also receivables, there is a nexus with the consolidated fund of the state, and hence the CAG has a statutory duty to scrutinize the books of accounts of discoms," the CAG said in its petition before the Supreme Court challenging the Delhi High Court order quashing the federal audit of discoms.

The petition said "there were huge discrepancies in their (discoms) accounts" and the state government's decision in seeking an audit of their books was not unjustified.

The three discoms—Anil Ambani's ADAG-owned BRPL and BYPL and the Tata-owned NDPL—are joint ventures between these private companies and the Delhi government. In each of the discoms, the Delhi government has 49% stake while the private entities have 51% each.

On the Delhi HC order, which in October 2015 quashed the CAG audit of the discoms, the federal auditor said the "high court has fallen into grave error by quashing the audit... on the ground of alleged procedural lapses".

Questioning the judgment, the federal auditor pointed out that the Arvind Kejriwal government was not the first to order a CAG audit of discoms. The previous government headed by Congress's Sheila Dikshit too had asked the CAG to audit the three discoms.

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The Times of India, 18 January, 2016, http://timesofindia.indiatimes.com/city/delhi/Discoms-used-Rs-5000cr-of-Delhi-govt-funds-CAG/articleshow/50618499.cms


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