Government auditor Comptroller and Auditor General of India (CAG) has pulled up five regulators, including Securities and Exchange Board of India (Sebi), Insurance regulatory and Development Authority (Irda) and Pension Fund Regulatory Development Authority (PFRDA), for keeping their surplus funds, worth over Rs 2,142 crore, outside government accounts.
CAG pulled up Sebi, Irda, PFRDA, the Central Electricity Regulatory Commission and the Petroleum and Natural Gas Regulatory Board for “contravention of constitutional provision”. “Scrutiny of the annual accounts of the five regulatory bodies revealed these bodies were retaining their surplus funds generated through fee charges and unspent grants received from the government,” CAG said.
The practice by the regulators contravene instructions issued by the finance ministry that all ministries and departments of the government would ensure funds of regulatory bodies are maintained in the public account.