Delhi Government Orders Cag Audit Of Discoms

The Delhi government has ordered a Comptroller and Auditor General (CAG) audit of the national Capital’s private power distribution companies (discoms), officials said on Thursday.

An order issued by the power department on Wednesday said the audit has been entrusted to the CAG under Section 20(1) read with Section 20(3) of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971. The audit will cover BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL), it said.

The government said the decision follows directions of the Supreme Court in its August 6, 2025 judgment, which called for a strict and intensive audit of the circumstances in which the discoms continued operations without recovery of regulatory assets. The CAG had conveyed its in-principle approval for the audit in January this year, said the order.

Regulatory assets are deferred costs for distribution companies that arise when electricity tariffs are not revised in line with rising supply expenses. These costs accumulate over time and are later recovered from consumers, usually with added interest. In Delhi’s case, tariffs have not been revised since 2014–15, leading to a massive build-up of dues.

The order noted that an earlier decision of the Power Department in March 2026 to entrust the audit to the CAG was set aside by the Appellate Tribunal for Electricity (APTEL) in April on procedural grounds, saying the mandatory process under Section 20(3) had not been followed. Subsequently, notices were issued to the discoms on June 6, inviting their representations, and a personal hearing was held on June 22.

According to the order, the Lieutenant Governor concluded that the objections raised by the distribution companies did not disclose any tangible grounds to oppose the audit and approved the CAG probe. The audit will also extend to all incidental or ancillary matters necessary for conducting the exercise in accordance with law, read the order.

The order directs all concerned authorities, including the three discoms, to provide full cooperation, records and information required by the CAG. It adds that the audit should preferably be completed within three months, subject to any extension considered necessary by the CAG in view of the scope and complexity of the exercise.

Delhi power minister Ashish Sood said the formal order for the CAG audit of discoms is a historic moment for transparency, accountability and governance reforms in Delhi’s power sector.

“More importantly, it is a victory for every electricity consumer and every honest taxpayer of Delhi,” he said.

Saloni Bhatia is a journalist with over 15 years of experience in reporting and storytelling, with a strong focus on the Delhi government and political developments in the Capital. Over the years, she has closely tracked policy decisions, governance issues, and political shifts. She started off as an entertainment journalist but then moved to covering beats like crime and education. Her experience on the crime beat helped her develop an eye for detail and accuracy, while education reporting allowed her to explore policy impact on students, teachers and institutions. Outside the newsroom, she enjoys reading both fiction and non-fiction. She also has a keen interest in watching Bollywood films.Read More