POLITICS

New Delhi court halts CAG audit of power discoms

▪

Read, Watch or Listen

Media Bias Meter

Sources: 3

Center 100%

Sources: 3

New Delhi, India – The Supreme Court of India on Friday stayed a proposed audit of Delhi’s power distribution companies by the Comptroller and Auditor General (CAG) and ordered that status quo be maintained until July 15, when the matter will be heard next. A bench of Justices KV Viswanathan and Shree Chandrashekhar also issued notice on an appeal filed by the Delhi Electricity Regulatory Commission (DERC) challenging an April order of the Appellate Tribunal for Electricity (APTEL). The court stayed APTEL’s direction that DERC could not entrust the audit to the CAG and should instead appoint an independent chartered accountant, saying the issue required interpretation of its earlier judgment. The bench noted that the submissions from both sides required it to examine its August 6, 2025 judgment on tariff orders passed by DERC between 2011 and 2014 and the treatment of accumulated regulatory assets. Appearing for DERC, Solicitor General Tushar Mehta argued that the audit envisaged in that judgment had to be completed before any recovery of regulatory assets from electricity consumers and formed an integral part of the court-ordered mechanism. Senior advocate Abhishek Manu Singhvi, representing the power distribution companies, maintained that the dispute was limited to deciding which authority should carry out the audit. The Supreme Court listed the matter for July 15 and directed that it be placed before the Chief Justice of India for assignment to an appropriate bench.

Prepared by Lauren Mitchell and reviewed by editorial team.

Timeline of Events

2011-2014 DERC issues multiple tariff orders
August 2015 Supreme Court delivers tariff judgment
April 2024 APTEL bars CAG-conducted discom audit
Earlier this year DERC files appeal in Supreme Court
Friday Supreme Court stays APTEL audit order
Friday Court orders status quo until July 15
July 15 2024 Matter listed for detailed hearing
July 15 2024 Chief Justice to assign appropriate bench

Why This Matters to You

This legal tussle in India affects your wallet. If the audit is done by an independent accountant, power companies might pass on any extra costs to consumers. If you have family or investments in Delhi, keep an eye on this.

The Bottom Line

The Supreme Court of India is deciding who should audit Delhi's power companies. This could impact electricity prices. The next hearing is on July 15. Worth forwarding if you know someone affected by this.