Delhi Lieutenant Governor VK Saxena on Friday approved a proposal of the Kejriwal Government allowing a special audit by the Comptroller and Auditor General (CAG)  empanelled external auditors on power subsidy amount disbursed to the private distribution companies (discoms) since 2016-17.

In a note to the chief minister Arvind Kejriwal,  L-G Saxena also slammed the AAP Government for avoiding audit of subsidies amounting to Rs.13,549 crore, given to private DISCOMs for more than 6 years, between 2016 to 2022.

The L-G has reiterated his stand that power subsidy should be provided to the poor, pointing that amounts being given to discoms be audited to ensure non-pilferage. He has also asked the Kejriwal government to expedite its appeal in the Supreme Court against a High Court order quashing CAG audit of discoms, that has been pending for more than seven years, officials said.

The L-G and the AAP led Arvind Kejriwal government are engaged in a tussle over power subsidy in Delhi, with the latter alleging Saxena of trying to stop the subsidy through a conspiracy with the BJP. There are several private discoms in Delhi which supplies electricity include BSES Rajdjani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), Tata Power Delhi Distribution Limited (Tata Power-DDL), New Delhi Municipal Council and MES power station.

Saxena in his note has underlined that audit by the CAG (Comptroller and Auditor General) empanelled auditors cannot and should not be considered as substitute to CAG audit.  Repeating his consent and commitment to power subsidy for the poor, Saxena has iterated that such subsidies are public funds collected as revenue from the people of Delhi and it is the prime responsibility of the government to ensure that benefits reach the targeted population rather than getting pilfered for the gain of vested interests.

 Allowing the proposal of the government to conduct audit through auditors empanelled with CAG, the LG has underlined that audit of huge amounts of public money should be conducted by the CAG.  The AAP government had been perfunctorily asking the Delhi Electricity Regulatory Commission (DERC) to conduct the audit since 2015, though it could have invoked Section 108 of the Electricity Act, 2003 and given binding directions to the DERC for the same, said the LG note.

However, the DERC did not conduct any audit, upon which the Power department through the Chief Secretary moved a file for asking the DERC to compulsorily carry out audit invoking the Act in December, 2022, which was turned down by the then Dy. Chief Minister and Power Minister Manish Sisodia on January 27, 2023, officials said.

The LG in his file noting to the chief minister has written, “What is even more astounding is the fact that even after the proposal to get special audit done by the DERC by invoking Section 108 of the Electricity Act, 2003 was much belatedly put forward by the department in December, 2022, the same was turned down by the then Dy Chief Minister on January 27, 2023”.

 Expressing surprise, the LG said “..Public funds to the tune of Rs 13,549 crore have not been audited for the past six years and have been passed on to private discoms without any substantive scrutiny as to whether the subsidies meant for the poor are reaching the targeted population or not. “

“It has further surprised me that it has taken the government six years to finally invoke its power under section 108 of the Electricity Act, 2003 to issue directions to the DERC to conduct special audit, instead of perfunctorily taking Cabinet decisions to this effect for the last six years and conveying it to the DERC, but to no avail,” Saxena further noted. The amount of Rs 13,549 crore was disbursed to the discoms from 2016-17 to 2021-22.

The government provides free electricity to people having monthly consumption of 200 units. Those using 201-400 units per month get 50 per cent subsidy capped at Rs 850.