The Supreme Court on Monday dismissed as “misconceived” a public interest petition that had sought a declaration that the Regulations on Audit and Accounts, 2007, framed under the Comptroller & Auditor General’s (Duties, Powers and Conditions of Services) Act, 1971, empowering the CAG to conduct a performance audit was violative of the Constitution.
A Bench headed by R M Lodha remarked auditing of a firm should not be confused with the constitutional function entrusted to CAG. “He is not a munimji (accountant),” the bench remarked.
Rejecting all contentions invoking constitutional provisions, the bench observed it was for the Parliament to consider, accept or reject the CAG's findings.”
The petitioner, Arvind Gupta, contended CAG has no power and authority under Article 149 of the Constitution and under the Act to conduct a performance audit. The performance audit is in effect authorising the CAG to review or assessment of a scheme or policy of the government, which is beyond the constitutional authority given to the CAG.
Referring to the coal allocation controversy, the petition stated the CAG had audited the existing policy guidelines in respect of the allocation of captive blocks by examining official communication between various Union government and state government functionaries. The CAG estimates for indicative revenue loss to exchequer is in respect of 57 mines allocated to private parties are based on mere assumptions, the petition said.
