New Delhi: Delhi cabinet has approved a proposal to audit the accounts of three power distribution companies, since their inception in 2002, by the Comptroller and Auditor General (CAG) of India, the Delhi High Court was informed on Monday.

Appearing for the Delhi Government, Standing Counsel (civil) Najmi Waziri informed the bench of Acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw that the state cabinet has endorsed the suggestion of the Delhi
Electricity Regulatory Commission (DERC) to get accounts of BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and North Delhi Power Limited (NDPL) audited by CAG.

"The cabinet approved infusion of equity in BSES group of companies to maintain 49 percent of share holding and enable availing of loan from IDBI. The cabinet approved audit by CAG since inception," the government's notification said.

According to DERC, the government is holding 49 per cent share in all three discoms and has a responsibility to ensure that their accounts are reliable and acceptable to all stake holders.

"An audit by CAG will not only settle all issues but will give a reasonable assurance to the government on the share received/ receivable from the discoms," as per DERC.

Earlier, the high court had asked the discoms to explain why their accounts should not be audited by the CAG while hearing a petition filed by the United RWAs Joint Action (URJA).

The PIL alleged that the state government succumbed to pressure of the discoms, which wanted a hike in power tariff by faking losses, and failed to fix the tariff for the year 2011-12.

The petitioner also sought a Central Bureau of Investigation (CBI) probe into the case.

(Agencies)