Supreme Court dismisses plea on CAG, says it can audit government functions
01.10.2012 Published in Economic Times
NEW DELHI: Observing that the "CAG is not a munim (accountant)" the Supreme Court today dismissed a plea challenging the Comptroller and Auditor General's power to conduct performance audit of controversial allocation of coal blocks by the UPA government.
A bench of justices R M Lodha and A R Dave said theCAG is a constitutional authority entitled to review and conduct performance audit on revenue allocations relating to the Centre, the states and the Union territories.
"The CAG is not a munim. He is a constitutional authority who can examine the revenue allocation and matters relating to the economy," the bench told counsel Santosh Paul, who appeared for petitioner Arvind Gupta.
The apex court said it was for the Parliament to consider, accept or reject the CAG's findings.
Interpreting various provisions of the Constitution, the bench said the CAG is a constitutional authority who is under a mandate to place before Parliament or the State legislature concerned its findings and, hence, it was for the respective legislatures to act upon such reports.
A bench of justices R M Lodha and A R Dave said theCAG is a constitutional authority entitled to review and conduct performance audit on revenue allocations relating to the Centre, the states and the Union territories.
"The CAG is not a munim. He is a constitutional authority who can examine the revenue allocation and matters relating to the economy," the bench told counsel Santosh Paul, who appeared for petitioner Arvind Gupta.
The apex court said it was for the Parliament to consider, accept or reject the CAG's findings.
Interpreting various provisions of the Constitution, the bench said the CAG is a constitutional authority who is under a mandate to place before Parliament or the State legislature concerned its findings and, hence, it was for the respective legislatures to act upon such reports.
Don’t undermine office of CAG, says Supreme Court
The Supreme Court on Monday declined to entertain a writ petition challenging the powers of the Comptroller and Auditor-General (CAG) to conduct performance audit relating to allocation of coal blocks and other issues.
A Bench of Justices R.M. Lodha and Anil R. Dave dismissed the petition filed by Arvind Gupta, who sought a declaration that the CAG had no power and authority under Article 149 of the Constitution and under the CAG’s (Duties, Powers and Conditions of Services) Act, 1971 to conduct performance audit of the schemes and policy of the Government of India.
After hearing counsel Santosh Paul, appearing for the petitioner, Justice Lodha told him : “CAG is not a munim [accountant] to go into the balance-sheets. The CAG is a constitutional authority entitled to review and conduct performance audit on revenue allocations relating to the Centre, the States and the Union Territories … and examine matters relating to the economy and how the government uses its resources.”
Justice Lodha told counsel: “The CAG is a constitutional authority who is under a mandate to place before Parliament or the State legislature concerned its findings. It was for Parliament or the respective legislatures to act upon such reports. It was for Parliament to consider, accept, partially accept or reject the CAG’s findings. Ultimately it was for Parliament to take a call on the CAG’s report and say ‘your [CAG] report is misconceived/misplaced and also reject the opinion. Don’t undermine the office of the CAG.’”
“It’s against principles”
The petitioner said the performance audit conducted by the CAG was ultra vires the Constitution. It was in effect authorising the CAG to review or assess a scheme or policy of the government, which was beyond the constitutional authority given to the CAG under Article 149 of the Constitution.
“The Regulations on Audit and Accounts, 2007 framed under the CAG’s (Duties, Powers and Conditions of Services) Act, 1971 empowering the CAG to conduct performance audit was violative of the principles of separation of powers. By conducting a performance audit, the CAG is, in fact, conducting a review of policy decision taken by the government, which is beyond its constitutional mandate. Even the judiciary is not permitted to conduct a review of the policy decisions of the government in view of the constitutional scheme,” the petitioner said.
Misinterpretation of Supreme Court Observation On Sale Of Natural Resources
Clever FM has tried to misinterpret the opinion given by Apex Court on sale of natural resources. Valued opinion given by Apex court actually means to say that the natural resources may be used for social welfare scheme without even opting for auction process.It will be foolish to say that supreme court has indirectly
Court has not given the ruling that the natural resources can be allotted by leaders of ruling parties as per whims and fancies and that too , to the kith and kin of politicians and top ranked officials.
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