Delhi government cracks down on power discoms, directs CAG audit over ₹38,500 cr pending RAs – Here’s what we know

Delhi Government Orders CAG Audit of Power Discoms Over ₹38,500 Crore Unrecovered Regulatory Assets

Theindiapostdaily.com – The Delhi government, led by Chief Minister Rekha Gupta, has mandated the Comptroller and Auditor General (CAG) to audit the city’s power distribution companies. This directive follows concerns about regulatory assets (RAs) totaling nearly ₹38,500 crore that have accumulated over years and remain uncollected from electricity consumers.

High Court Dismisses Intervention Request

The Delhi High Court on June 22 ruled against intervening in the government’s decision to audit BRPL and BYPL. A bench of Justice Tejas Karia noted that the power discoms’ challenge was premature, clearing the way for the CAG to proceed. Power Minister Ashish Sood welcomed the court’s stance, emphasizing the need for transparency.

According to an official order from the Delhi Power Department, the CAG will conduct a thorough audit to investigate why the three discoms—BRPL, BYPL, and Tata Power Delhi Distribution (TPDDL)—have not recovered these regulatory assets. The audit must be finalized within three months, though extensions may be granted based on the scope of work.

“The CAG audit of Delhi’s discoms is currently under judicial review. As the case is being considered in court, we are not commenting further at this stage,” said a BRPL spokesperson.

DERC’s earlier submission to the Appellate Tribunal for Electricity (APTEL) highlighted the breakdown of pending RAs: ₹19,174 crore for BRPL, ₹12,333 crore for BYPL, and ₹7,046 crore for TPDDL. These represent expenditures approved by the regulatory body for electricity supply. The total RAs have surged to ₹38,500 crore due to stagnant tariffs for over a decade.

Legal and Regulatory Context

The Supreme Court’s August 6, 2025 ruling emphasized the need for a rigorous audit to examine the discoms’ handling of unrecovered RAs. The CAG had previously given in-principle approval to audit the accounts of the three companies, pending authorization from the Lieutenant Governor under the 1971 CAG Act.

APTEL had previously rejected a CAG audit request, directing DERC to initiate liquidation of pending RAs within three weeks. However, the current order marks a shift, with the government pushing for a more detailed review. This will be the first CAG audit of Delhi’s electricity distribution companies since privatization in 2002, following the AAP government’s earlier attempt blocked in 2015.