Comptroller and Auditor General of India

The Comptroller and Auditor General (CAG) of India is an authority, established

Comptroller and Auditor
by Article 148 of the Constitution of India, which audits all receipts and expenditure
General of India
of the Government of India and the state governments, including those of bodies and
authorities substantially financed by the government. The CAG is also the external
auditor of Government-owned corporations and conducts supplementary audit of
government companies, i.e., any non-banking/ non-insurance company in which
Union Government has an equity share of at least 51 per cent or subsidiary
companies of existing government companies. The reports of the CAG are taken into
consideration by the Public Accounts Committees(PACs) and Committees on Public
Undertakings (COPUs), which are special committees in the Parliament of India and
the state legislatures. The CAG is also the head of the Indian Audit and Accounts Logo of Comptroller and Auditor
Department, the affairs of which are managed by officers of Indian Audit and General of India
Accounts Service, and has over 58,000 employees across the country
.

The CAG is mentioned in the Constitution of India under Article 148 – 151.

The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of
India in Indian order of precedence. The current CAG of India is Rajiv
Mehrishi,[4][5][6][7][8] who assumed office on 25 September 2017. He is the 13th
CAG of India.

Contents
Incumbent
Appointment Rajiv Mehrishi, IAS
Oath or affirmation
since 25 September 2017
Duties of the CAG
Recent achievements Nominator Prime Minister of India
Suggested reforms
Appointer President of India
Compensation
Term 6 yrs or up to 65 yrs of
Removal
length age
Indian Audit and Accounts Service (whichever is earlier)
Scope of audits
Inaugural V. Narahari Rao
Reforms suggested by former CAG Vinod Rai
holder
Prominent audit reports
2G Spectrum allocation
Deputy Deputy Comptrollers
Coal mine allocation and Auditors General of
Fodder scam India
Krishna-Godavari (KG) D-6 gas block Salary ₹250,000 (US$3,500)
List of Comptroller and Auditors General of India per month[1][2][3]
References Website Official Website
External links

Appointment
The Comptroller and Auditor-General of India is appointed by the President of India[9] following a recommendation by the Prime
Minister. On appointment, he/she has to make an oath or af
firmation before the President of India.

Oath or affirmation
"I,(name of the person being appointed), having appointed Comptroller and Auditor-General of India do swear in the name of
God/solemnly affirm that I will bear true faith and allegiance to the Constitution of India as by law established, that I will uphold the
sovereignty and integrity of India, that I will duly and faithfully and to the best of my ability, knowledge and judgement perform the
duties of my office without fear or favour, affection or ill-will and that I will uphold the Constitution and the laws.

Duties of the CAG

As per the provisions of the constitution, the CAG's (DPC) (Duties, Powers and Conditions of Service) Act, 1971 was enacted. As
per the various provisions, the duties of the CAG include the audit of:

Receipts and expenditure from the Consolidated Fund of India and of the State and Unionerritory
T having legislative
assembly.
Trading, manufacturing, profit and loss accounts and balance sheets, and other subsidiary accounts kept in any
Government department; Accounts of stores and stock kept in Government ficesof or departments.
Government companies as per the provisions of the Companies Act, 2013.
Corporations established by or under laws made by Parliament in accordance with the provisions of the respective
legislation.
Authorities and bodies substantially financed from the Consolidated Funds of the Union and State Governments.
Anybody or authority even though not substantially financed from the Consolidated Fund, the audit of which may be
entrusted to the C&AG.
Grants and loans given by Government to bodies and authorities for specific purposes.
Entrusted audits e.g. those of Panchayati Raj Institutions and Urban Local Bodies underechnical
T Guidance &
Support (TGS).

Recent achievements
Recently the CAG under Vinod Rai has constantly been in the limelight for its reports exposing mega corruption, particularly in 2G
spectrum case, Commonwealth Games scamand other scams.[10][11]

Suggested reforms
In June 2012, Lal Krishna Advani a veteran Indian politician and former Deputy Prime Minister of India(as well as former Leader of
the Opposition in Indian Parliament)[12] suggested that CAG's appointment should be made by a bipartisan collegium consisting of
the prime minister, the Chief Justice of India, the Law Minister and the Leaders of the Opposition in the Lok Sabha and the Rajya
Sabha.[13][14] Subsequently, M Karunanidhi, the head of Dravida Munnetra Kazhagam(DMK) party and five times Chief Minister of
Tamil Nadu[15] supported the suggestion. Advani made this demand to remove any impression of bias or lack of transparency and
fairness because, according to him, the current system was open to "manipulation and partisanship".[13][14] Similar demand was
made by many former CEC's such as B B Tandon, N Gopalaswamy and S Y Quraishi,[16] however the government did not seem too
keen.[17]

CPI MP Gurudas Dasgupta wrote a letter to the PM and demand CAG has appointed by the collegium of consisting the PM, the CJI
and the leader of the opposition in Lok Sabha but the PM declined. Former CAG V. K. Shunglu has suggested in its CWG scam
.[18]
report that CAG be made a multi-member body

PMO minister V.Narayanasamy in his interview with PTI said Government is considering the Shunglu panel report but PM and
Finance Minister declined it. Later V.Narayanasamy said he misquoted but PTI reaffirmed it.[19]

Compensation
The salary and other conditions of service of the CAG are determined by the Parliament of India through "The Comptroller and
Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971". His salary is same as that of judge of the Supreme court of
India. Neither his salary nor rights in respect of leave of absence, pension or age of retirement can be varied to his disadvantage after
his appointment. The CAG is not eligible for further office either under the Government of India or under the Government of any
State after he has ceased to hold his office. These provisions are in order to ensure theindependence of CAG.[3][20]

Salary of CAG
Date Salary

1 January 2016 ₹250,000 (US$3,500)[1][2]

Removal
The CAG can be removed only on an address from both houses of parliament on the ground of proved misbehaviour or incapacity.
The CAG vacates the office on attaining the age of 65 years even without completing the 6 years term by impeachment also.

Indian Audit and Accounts Service

The Constitution of India [Article 148] provides for an independent office to the CAG of India. He or she is the head of Indian Audit
and Accounts Department. He/she has a duty to uphold the Constitution of India and laws of the Parliament to safeguard the interests
of the public exchequer. The Indian Audit and Accounts Service aids the CAG in the discharge of his/her functions.

Scope of audits
Audit of government accounts (including the accounts of the state governments) in India is
entrusted to the CAG of India who is empowered to audit all expenditure from the Consolidated "CAG is not a munimji or
an accountant or
Fund of the union or state governments, whether incurred within India or outside, all revenue
something like that... He is
into the Consolidated Funds and all transactions relating to the Public Accounts and the a constitutional authority
Contingency Funds of the Union and the states. Specifically
, audits include: who can examine the
revenue allocation and
Transactions relating to debt, deposits, remittances, Trading, and manufacturing matters relating to the
Profit and loss accountsand balance sheets kept under the order of thePresident economy. CAG is the
or Governors principal auditor whose
Receipts and stock accounts. CAG also audits the books of accounts of the function is to go into the
government companies as per Companies Act. economy, effectiveness
In addition, the CAG also executes performance and compliance audits of various functions and
and efficiency of the use
of resources by the
departments of the government. Recently, the CAG as a part of thematic review on government. If the CAG
"Introduction of New Trains" is deputing an auditors' team on selected trains, originating and will not do, then who else
terminating at Sealdah and Howrah stations, to assess the necessity of their introduction.[22] In a will do it"
path-breaking judgement, the Supreme Court of India ruled that the CAG General could audit – Observation of a bench of
private firms in revenue-share deals with government. Supreme Court of India
while dismissing a petition
CAG has been elected the Chairman of the United Nations' Board of Auditors.[23][24] CAG has
challenging CAG reports on
ganisations:[25]
been appointed as external auditor of eleven UN or
2G spectrum, Coal Blocks
World Intellectual Property Organization(WIPO) Allotment, etc.[21]
United Nations Secretariat(Volume 1)
United Nations Children's Fund(UNICEF)
United Nations Escrow (Iraq) Account
United Nations Joint Staff Pension Fund (UNJSPF)
Strategic Heritage Plan (SHP)
United Nations Compensation Commission(UNCC)
International Trade Centre (ITC)-Capital Master Plan (CMP)
 United Nations Office for Project Services(UNOPS),
Information Communication Technology (OICT)
Umoja
Omkar Goswami is an Indian who is presently one of the External Auditors of the UN organisation World Food Programme (WFP)
headquartered at Rome, Italy.[26]

Reforms suggested by former CAG Vinod Rai

In November 2009, the CAG requested the government to amend the 1971 Audit Act to bring all private-public partnerships (PPPs),
Panchayti Raj Institutions and societies getting government funds within the ambit of the CAG. The amendment further proposes to
enhance CAG's powers to access information under the Audit Act. In the past, almost 30% of the documents demanded by CAG
officials have been denied to them.[27] The PPP model has become a favourite mode of executing big infrastructure projects worth
millions of rupees and these projects may or may not come under the audit purview of the CAG, depending on sources of funds and
the nature of revenue sharing agreements between the government and the private entities. As of 2013, it is estimated that 60 percent
[28]
of government spending does not come under the scrutiny of the CAG.

Prominent audit reports

Following are some of the most debated CAG reports:

2G Spectrum allocation
A CAG report on issue of Licences and Allocation of 2G Spectrum[29] resulted in a huge controversy. The report estimated that there
was a presumptive loss of ₹1,766 billion (US$25 billion) by the United Progressive Alliance (UPA) government.[30] In a chargesheet
filed on 2 April 2011 by the investigating agency Central Bureau of Investigation (CBI), the agency pegged the loss at ₹310 billion
(US$4.3 billion)[31]

All the speculations of profit, loss and no-loss were put to rest on 2 February 2012 when the Supreme Court of India on a public
interest litigation (PIL) declared allotment of spectrum as "unconstitutional and arbitrary"and quashed all the 122 licenses issued in
2008 during tenure of A. Raja (then minister for communications & IT in the UPA government) the main accused.[32] The court
further said that A. Raja "wanted to favour some companies at the cost of the public exchequer" and "virtually gifted away important
national asset".[33]

Revenue loss calculation was further established on 3 August 2012 when according to the directions of the Supreme Court, Govt of
India revised the reserve price for 2G spectrum to₹140 billion (US$1.9 billion).[34][35]

However, the special court in New Delhi acquitted all accused in the 2G spectrum case including prime accused A Raja and
Kanimozhi on December 21, 2017, the verdict was based on the fact that CBI could not find any evidence against the accused in
those 7 years. Per the judgement, "Some people created a scam by artfully arranging a few selected facts and exaggerating things
beyond recognition to astronomical levels."

Coal mine allocation

A 2012 CAG report on coal mine allocation[36] received massive media and political reaction as well as public outrage. During the
2012 monsoon session of the Parliament, the BJP protested the Government's handling of the issue demanding the resignation of the
prime minister and refused to have a debate in the Parliament. The deadlock resulted in Parliament functioning only seven of the
twenty days of the session.[37][38]

The CAG report criticised the Government by saying it had the authority to allocate coal blocks by a process of competitive bidding,
but chose not to.[39] As a result, both public sector enterprises (PSEs) and private firms paid less than they might have otherwise. In
its draft report in March, the CAG estimated that the "windfall gain" to the allocatees was ₹10,673 billion (US$150 billion).[39] The
CAG Final Report tabled in Parliament put the figure at₹1,856 billion (US$26 billion)[40]

While the initial CAG report suggested that coal blocks could have been allocated more efficiently, resulting in more revenue to the
government, at no point did it suggest that corruption was involved in the allocation of coal. Over the course of 2012, however, the
question of corruption came to dominate the discussion. In response to a complaint by the BJP, the Central Vigilance Commission
(CVC) directed the CBI to investigate the matter. The CBI named a dozen Indian firms in a First Information Report (FIR), the first
step in a criminal investigation. These FIRs accuse them of overstating their net worth, failing to disclose prior coal allocations, and
hoarding rather than developing coal allocations.[41][42] The CBI officials investigating the case have speculated that bribery may be
involved.[41]

Fodder scam
The scandal was first exposed due to the CAG report in the matter in December 1995. The report alleged of fraudulent withdrawal of
government funds worth ₹9.5 billion (US$130 million) in the Bihar animal husbandry department against non-existent supplies of
fodder and medicines.[43] Subsequently, based on Patna High Court's orders, CBI investigated the case and registered as many as 63
cases. Many accused have been convicted while many cases are still undertrial.[44]

Krishna-Godavari (KG) D-6 gas block

The oil ministry imposed a fine of₹7000 crores on Mukesh Ambani's company for the sharp drop in production of gas and violations
mentioned in CAG's 2011 report. Oil ministry did not approve company's US$7.2 billion stake in deal with BP.[45][46][47] So Jaipal
Reddy known for his honesty was shifted from oil ministry to the Science and Technology ministry owing to pressure from Reliance
group of Industries.[48][49][50] RIL allowed the CAG to begin the audit in April this year after stalling it for a year. But unresolved
issues could stall audit of KG Basin again.[51] Then Reliance appointed Defence Secretary Shashikant Sharma as new CAG to audit
KG Basin, said Prashant Bhushan.[52] In KG D-6, most of the cost had been recovered by the private player and the increase in price
would only go as profit. About 90% of receipts from K-G D-6 were so far booked as expenditure and in the remaining 10%, only 1%
[53]
was paid to the government and rest 9% went to the operator as profit.

List of Comptroller and Auditors General of India

No. Comptroller and Auditor General of India Year tenure began Year tenure ended
1 V. Narahari Rao 1948 1954
2 A. K. Chanda 1954 1960
3 A. K. Roy 1960 1966
4 S. Ranganathan 1966 1972
5 A. Bakshi 1972 1978
6 Gian Prakash 1978 1984
7 T. N. Chaturvedi 1984 1990
8 C. G. Somiah 1990 1996
9 V. K. Shunglu 1996 2002
10 VN Kaul 2002 2008
11 Vinod Rai 2008 2013
12 Shashi Kant Sharma 2013 2017
13 Rajiv Mehrishi 2017 Incumbent

Source:[54] [55]
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External links
"Official website of the Comptroller and Auditor General of India". Retrieved 19 January 2009.
Reports by Comptroller and Auditor General of India

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