New Delhi . Electricity distribution company BSES Rajdhani Power Limited has received a big blow from the Delhi High Court. The court has rejected the petition of BSES Rajdhani Power Limited, in which the company had challenged the audit notice of the Comptroller and Auditor General (CAG). The High Court said that at present the CAG has only issued a notice and the audit process has not even started yet. The High Court clearly said that there is no ban on CAG audit of electricity distribution companies (DISCOMs) of Delhi. Provided that the guidelines set by the Supreme Court are completely followed. The court said that BSES has full right to present its stand and lodge objection. CAG will also have to give the company an opportunity of being heard before starting the audit and will have to follow the procedure prescribed under Section 20 of the Comptroller and Auditor General Act.
The High Court also clarified that nowhere in the old decision of the Supreme Court, a complete ban has been imposed on CAG audit. If all legal procedures are followed then audit can be conducted. The court also said that in future, if the company has any objection to the audit process or any other aspect, then all its legal rights will be protected and it can challenge it at the appropriate forum.
The court also said that if in future the company has any objection to the audit process or any other aspect, then it can challenge it at the appropriate forum. BSES challenged the notice, calling it illegal and misuse of authority. BSES had argued that the notice issued against the courts’ decisions should be quashed.
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