New Delhi: CAG report commands respect and cannot be brushed aside but it cannot be the final word on an issue, the Supreme Court said on Thursday.

The Apex Court noted that the auditor's findings cannot be gospel truth as it is subject to scrutiny by the Parliament.

"The CAG's report is always subject to parliamentary debates and it is possible that PAC can accept the ministry's objection to the CAG report or reject the report of the CAG. The CAG, indisputably is an independent constitutional functionary. However, it is for Parliament to decide whether after receiving the report to make its comments on it," a bench of Justices KS Radhakrishnan and Dipak Misra observed.

The bench made the observations while rejecting CAG views on Cairn-Vedanta deal, saying that "it is factually and legally incorrect and cannot be accepted". The bench analyzed various provisions pertaining to CAG functioning and said, "We have come across several instances where considerable reliance has been placed on the CAG report projecting it as gospel truth".

"We have referred to the report of the CAG, the role of the PAC and the procedure followed in the House, only to indicate that the CAG report is always subject to scrutiny by Parliament and Government. They can always offer their views on the report of the CAG," the bench said.

"The ministry can always point out, if there is any mistake in the CAG’s report or the CAG has inappropriately appreciated various issues," the bench said.


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