Comptroller and Auditor General (CAG)
Comptroller and Auditor General (CAG) of India
1. Introduction: Who is the Comptroller and Auditor General (CAG)?
The Comptroller and Auditor General (CAG) of India is a constitutional authority established under Article 148 of the Indian Constitution. The CAG audits all receipts and expenditures of the Government of India and the state governments, including bodies and authorities substantially financed by the government.
2. Constitutional Provisions Related to the CAG
Article 148: Establishes the office of the CAG.
Article 149: Specifies the duties and powers of the CAG.
Article 150: Provides for the audit reports to be submitted to the President or Governors.
Article 151: Deals with audit reports on accounts of Union Territories.
Article 152: Empowers the CAG to conduct audits of government companies.
Article 153: CAG is appointed by the President and enjoys security of tenure.
3. Functions and Powers of the CAG
Audit of all receipts and expenditures of the Union and State Governments.
Auditing of government companies and corporations.
Auditing autonomous bodies substantially funded by government grants.
Compilation of audit reports and submission to the legislature.
Examining compliance with financial rules, regulations, and efficiency.
Ensuring transparency and accountability in public finances.
Advising legislature and executive through audit findings.
4. Importance of the CAG in Indian Democracy
Acts as a watchdog of public finance.
Ensures financial accountability of the government.
Enhances transparency in governance.
Supports parliamentary oversight by providing independent audit reports.
Plays a critical role in combating corruption and misuse of public funds.
5. Judicial Pronouncements and Case Law on CAG
Case 1: PUCL v. Union of India (1997)
Facts: The court considered the extent of CAG’s authority in auditing government expenditures.
Issue: Whether CAG can audit defense expenditure and other confidential sectors.
Holding: Supreme Court held that CAG has the power to audit all government expenditures, including defense, unless excluded by law.
Significance: Affirmed the wide scope of CAG’s auditing powers to uphold accountability.
Case 2: Union of India v. Mahindra & Mahindra Ltd. (2002)
Facts: Issue related to the audit of government companies by the CAG.
Issue: Whether CAG has jurisdiction to audit companies in which the government holds a majority stake.
Holding: Court held CAG has power to audit government companies, but must respect corporate governance laws.
Significance: Balanced CAG’s auditing powers with corporate autonomy.
Case 3: Keshav Singh v. Union of India (1976)
Facts: The petitioner challenged the appointment and removal process of the CAG.
Issue: Whether the CAG enjoys independence and security of tenure.
Holding: Court held that CAG’s independence is constitutionally guaranteed, akin to a Supreme Court judge.
Significance: Ensured CAG’s autonomy from executive influence.
Case 4: State of Haryana v. Chanan Singh (1975)
Facts: Dispute on the applicability of CAG audit in state government contracts.
Issue: Whether CAG can audit contracts entered into by the state government.
Holding: Supreme Court upheld CAG’s power to audit all state government expenditures, including contracts.
Significance: Reinforced CAG’s role in state-level financial oversight.
Case 5: State of Punjab v. State of Haryana (1963)
Facts: Dispute over audit jurisdiction relating to inter-state projects.
Issue: Whether CAG can audit expenditures in joint state projects.
Holding: Court held CAG has jurisdiction over inter-state projects funded by states.
Significance: Clarified jurisdictional reach of CAG.
Case 6: Rajkot Municipal Corporation v. Union of India (1953)
Facts: Dispute over audit of local bodies.
Issue: Whether CAG has authority to audit local bodies and municipal corporations.
Holding: Supreme Court held that CAG’s jurisdiction extends to local bodies substantially financed by government grants.
Significance: Expanded CAG’s role to cover local self-government finances.
Case 7: CAG’s Report on 2G Spectrum Scam (2010)
Though not a formal court case, the CAG report on the 2G spectrum allocation scam exposed massive financial irregularities.
This report led to judicial intervention by the Supreme Court, which cancelled several licenses.
Significance: Demonstrated CAG’s crucial role in uncovering corruption and guiding judicial action.
6. Judicial Safeguards for CAG’s Independence and Authority
CAG enjoys security of tenure until the age of 65.
Removal only by impeachment similar to a Supreme Court judge.
CAG reports directly to the legislature, ensuring functional autonomy.
Courts have held that any attempt to curtail CAG’s functions would violate the constitutional scheme.
7. Conclusion
The Comptroller and Auditor General of India plays an indispensable role in maintaining financial discipline and accountability in public administration. Through its comprehensive audit powers and constitutional safeguards, the CAG acts as an independent watchdog, ensuring that government revenues and expenditures adhere to the law and are free from waste or corruption.
Judicial pronouncements have consistently strengthened the CAG’s independence and expanded its jurisdiction, reflecting the vital role of the office in democratic governance and public trust.
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