Supreme Court pauses CAG audit of Delhi discoms, says case requires detailed probe
The Supreme Court on Monday ordered a pause on the proposed CAG audit of Delhi’s private electricity distribution companies, putting on hold the move until
The Supreme Court on Monday ordered a pause on the proposed CAG audit of Delhi’s private electricity distribution companies, putting on hold the move until further orders. Directing that the status quo be maintained, the court observed that the case raises important legal questions that require detailed consideration. The matter is now listed for further hearing on July 15, after the partial working period of the summer recess. Read Full Story The interim order effectively halts the audit proposed by the Comptroller and Auditor General (CAG) of India into the three private discoms operating in the national capital.
These discoms are BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) & Tata Power Delhi Distribution Limited (TPDDL). A bench comprising Justice KV Viswanathan and Justice Shri Chandrasekhar noted that the legality of the Delhi Electricity Regulatory Commission (DERC) assigning such an audit to the CAG needs closer judicial scrutiny. The court also stayed an order of the Appellate Tribunal for Electricity (APTEL), which had directed the DERC to conduct an audit through an independent chartered accountant. In addition, the bench restrained the CAG from proceeding with the audit exercise for the time being, effectively freezing all related actions until the next hearing.
The interim stay comes as a setback for the Delhi government, which had sought a CAG audit as part of its push to examine the finances of private power distribution companies before permitting them to recover over Rs 38,500 crore in regulatory assets from consumers. RS 38,000 CRORE REGULATORY ASSETS IN FOCUS The case centres on "regulatory assets", which are dues owed to power distribution companies when electricity tariffs are kept below the actual cost of supply due to regulatory or government policy decisions. In its 2025 judgment, the Supreme Court directed electricity regulators across the country to take steps to liquidate such accumulated regulatory assets.
In Delhi alone, the outstanding regulatory assets exceed Rs 38,000 crore. While the Delhi government has sought a CAG audit of the discoms, the companies contend that the Supreme Court envisaged an independent audit by a chartered accountant, not by the constitutional auditor. Ends
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