Supreme Court observations may clear way for CAG audit of Delhi power firms

The Supreme Court's prima facie observations on APTEL's jurisdiction and the need for an independent audit could pave the way for a CAG audit of Delhi's power companies. Power Minister Ashish Sood called it a major victory for consumers, amid concerns over regulatory assets worth thousands of crores.SC observations may clear way for CAG audit of Delhi discomsThe Supreme Court's observations during a hearing on Wednesday may clear the way for a Comptroller and Auditor General (CAG) audit of electricity distribution companies in Delhi.The court made a prima facie observation that the Appellate Tribunal for Electricity (APTEL) had no jurisdiction to comment on the appointment of the CAG to conduct the audit.The Supreme Court also observed that a strict and comprehensive audit could not be envisaged through a private entity. It further noted that the issues of liquidation and audit of regulatory assets were interconnected.The observations assume significance as the issue of regulatory assets involves consumers and amounts running into thousands of crores of rupees. Delhi Power Minister Ashish Sood welcomed the Supreme Court's observations, calling them a major victory for the people of Delhi."The BJP government in Delhi has been fighting for a CAG audit for a long time. The Aam Aadmi Party government did not want the electricity companies to be audited, but we had promised the people of Delhi that we would pursue it. We hope the electricity companies will undergo a CAG audit and that the people of Delhi will benefit from it," Sood said. "We will not allow the burden of regulatory assets to fall on the people of Delhi," he added.Power expert VS Vohra said the audit was supposed to be conducted by the CAG and not by a private entity, making the Supreme Court's prima facie observations significant."The issue of regulatory assets is directly linked to consumers and thousands of crores of rupees. In such a situation, there should be a credible, independent and authoritative CAG audit to bring the truth to light, clarify the actual position and ultimately provide genuine relief to consumers," Vohra said.He said the issue was not merely about accounting but also concerned public money and consumer interests.- EndsPublished By: Sayan GangulyPublished On: Sep 9, 2026 21:49 IST