23 June 2026

Delhi High Court on BSES audit

The Delhi High Court ruling on the CAG audit of private power distribution companies involves significant issues regarding regulatory oversight, transparency in public-private partnerships, and the mandate of statutory bodies.

Questions

1. Discuss the constitutional and legal mandate of the Comptroller and Auditor General (CAG) in auditing private entities that perform public utility functions, particularly in the context of power distribution. 150 words
   Attempt this — 150 words in 8 min

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2. Examine the role of regulatory commissions in ensuring financial transparency and accountability in the power sector. How do judicial interventions balance the rights of private distribution companies with the public interest in utility regulation? 250 words
   Attempt this — 250 words in 11 min

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Prelims

1. Which of the following best describes the role of the Comptroller and Auditor General (CAG) regarding the audit of private power distribution companies in India?

   1. A The CAG's audit reports on private companies are legally binding and can directly impose penalties.
   2. B The CAG has the automatic constitutional authority to audit all private companies in India.
   3. C The CAG can only audit private companies if specifically mandated by a statute or requested by the government under specific legal provisions.
   4. D The CAG is strictly prohibited from auditing any entity that is not a government department.