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Tata Power Delhi Distribution Ltd (TPDDL), one of the three private power distribution companies in Delhi, has said the Delhi government has failed to communicate the terms of reference for its audit by the Comptroller and Auditor General of India (CAG) despite repeated reminders.
TPDDL also said the CAG had refused to appoint auditors to scrutinise its accounts on the company’s own request made in 2002 soon after it started operation. “However, at that time, the CAG’s stand was that since the discom is not a government-owned company under section 617 of the Companies Act, the CAG cannot appoint a statutory auditor,” the Tata Power subsidiary said in a statement.
In 2002, the CAG had also turned down a similar request from the other two discoms — Reliance Infrastructure-owned BSES Yamuna and BSES Rajdhani — said an executive close to the development. When contacted, a senior CAG official could not confirm whether a request from the discoms in 2002 for audit had been turned down by the auditor.
He, however, justified the current audit by the CAG, which is likely to soon begin, arguing it is in “public interest”. The audit was to begin on Monday but had to be halted after the discoms called the process illegal, he said.
Delhi Chief Minister Arvind Kejriwal had requested the audit alleging the three discoms have manipulated accounts to seek tariff hikes. While the discoms have been opposing the audit, the CAG agreed after receiving a formal request from Delhi’s Lieutenant Governor Najeeb Jung.
The discoms have disputed the government's claim of revenue from Aggregate Technical and Commercial (AT&C) loss reduction. They have also rejected the allegations of undisclosed revenue from surplus power.
Earlier this month, Kejriwal had slashed power tariffs for Delhi’s 2.8 million domestic consumers by half through a 50 per cent subsidy announcement. The subsidy would cost Delhi government Rs 260 crore in the current quarter ending March. The result of the audit could impact the subsidy handout.
