In a landmark move aimed at strengthening transparency and financial accountability, the Delhi Government has officially ordered the first-ever Comptroller and Auditor General (CAG) audit of the capital’s private power distribution companies (DISCOMs). The audit has been directed to be completed within three months and will examine the financial records of the electricity distributors for the first time in Delhi’s history.
The primary focus of the audit will be the ₹38,000 crore in regulatory dues claimed by the DISCOMs. The government has questioned how such a massive liability accumulated despite the companies consistently reporting profits and paying dividends to the Delhi Government, which holds a stake in these distribution firms. Officials say the audit will determine whether the outstanding dues are legitimate, how they were calculated, and whether any accounting irregularities or financial mismanagement affected consumers or the public exchequer.
The decision comes after years of demands for an independent audit of the power companies’ accounts. The DISCOMs had opposed a CAG audit for years, but following the legal process and the absence of judicial relief, the Delhi Government has now formally initiated the exercise. The audit is expected to provide greater clarity on the financial health of the companies and improve transparency in Delhi’s power sector.
The issue has remained politically significant for several years. While former Chief Minister Arvind Kejriwal had earlier advocated for a CAG audit of the power companies, the process was never implemented. The current government, led by Chief Minister Rekha Gupta, has now moved forward with the audit, setting the stage for one of the most significant financial examinations of Delhi’s electricity distribution sector.
