Delhi power distribution companies can lose licence if they refuse audit : Najeeb Jung

New Delhi –  Delhi’s Arvind Kejriwal government may cancel the licences of power distribution companies who refuse to have their financial records examined by the national auditor, Lieutenant Governor Najeeb Jung today said.

The capital’s three major power distribution companies have argued that the Comptroller and Auditor General (CAG) cannot check the accounts of private companies. Their argument weakened today after the Delhi High Court ruled in a similar case that the CAG can examine private telecom companies who have a revenue sharing agreement with the government.

“A CAG audit of electricity companies in the national capital from the time of privatisation shall be carried out. The government is willing to even consider cancelling the licenses of companies that do not cooperate in the conduct of that audit. The government shall not be a silent bystander,” Mr Jung said, addressing the Delhi assembly.

The distribution of power in Delhi was privatized in 2002. Last week, the Kejriwal government ordered audits of the finances of the three companies that provide power in Delhi, BSES Yamuna Power, BSES Rajdhani Power and Tata Power Delhi Distribution.

Mr Kejriwal, who took office a week ago, has promised to halve the price of power and has accused the power distribution companies of overcharging consumers. In his pre-poll campaign, he had alleged that the previous Congress government colluded with power companies to fleece Delhi residents.