As part of the probe ordered by Delhi Power Minister Satyendar Jain, it will also be investigated whether the representation by Delhi government, if so, was adequate.
Senior Standing Counsel of the Delhi government in the High Court Rahul Mehra will head the probe and submit his report within one week.
"The Power Minister has ordered an inquiry to ascertain whether the Delhi administration was represented at all in the High Court and if it was, whether the representation was adequate during one year of President's rule, in the case filed by discoms challenging the CAG audit," a senior government official said.
During its 49-day stint in January and February last year, the Arvind Kejriwal government had ordered the CAG audit. His government then had resigned on February 14, 2014.
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"Delhi was then placed under President's rule and following fresh assembly elections, the present government assumed office exactly after one year on February 14, 2015. Immediately thereafter, the government appointed Dr Rajeev Dhawan, Senior Advocate, to represent it before the Delhi High Court," the government said in a statement.
Dhawan appeared in these hearings and effectively presented Delhi government's views. Since March 2, 2015, no further hearing took place and the order was reserved by the High Court, the statement stated.
"During its order, the observations of Delhi High Court raise serious questions on whether the Delhi government was properly represented before court during the one year of President's Rule from February 14, 2014 to February 13, 2015. The inquiry will look into all these aspects," it said.
The discoms -- Tata Power Delhi Distribution Ltd (TPDDL), BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd -- had challenged the AAP government's January 7, 2014, decision ordering a CAG audit of their accounts.
The single judge, in his January 24, 2014 order, had also asked the discoms to "fully cooperate with CAG in the audit process".