The Delhi Government has ordered a strict and intensive audit by the Comptroller and Auditor General (CAG) into the circumstances under which the capital’s three power distribution companies continued without recovering regulatory assets. The decision follows directions from the Supreme Court and comes after completing the legal procedure mandated under the CAG Act.
The order, issued by the Department of Power, authorises the CAG to conduct the audit of BSES Rajdhani Power Ltd. (BRPL), BSES Yamuna Power Ltd. (BYPL) and Tata Power Delhi Distribution Ltd. (TPDDL). The audit will examine the circumstances surrounding the non-recovery of regulatory assets and all related matters necessary for a comprehensive review.
The government said the move stems from the Supreme Court’s August 6, 2025, judgment, which directed a “strict and intensive audit" into the issue of unrecovered regulatory assets of Delhi’s electricity distribution companies.
The order notes that an earlier notification issued in March 2026 was set aside by the Appellate Tribunal for Electricity (APTEL) because the mandatory consultation process under Section 20(3) of the CAG Act had not been followed. Subsequently, fresh notices were issued to the three discoms, which were given an opportunity to submit written representations and present their views during a personal hearing on June 22, 2026.
The companies also challenged the notices before the Delhi High Court, but the court dismissed the petition as premature, allowing the competent authority to take an independent decision.
After considering the submissions of the distribution companies, the Supreme Court’s directions and the recommendations of the Delhi Cabinet, the Lieutenant Governor concluded that the objections raised by the discoms were “not sufficient to resist the entrustment of audit to the CAG."
Reacting to the development, Delhi Power Minister Ashish Sood termed the government’s decision a landmark step towards reforming the power sector.
“The formal order for the CAG audit of Delhi’s DISCOMs is a historic moment for transparency, accountability and governance reforms in Delhi’s power sector. More importantly, it is a victory for every electricity consumer and every honest taxpayer of Delhi," Sood said.
Highlighting the objective of the audit, Sood said, “The people of Delhi have every right to know how regulatory assets worth nearly Rs 38,000 crore kept growing and who benefited while this burden continued to hang over the citizens. This CAG audit will bring out the facts."
He further asserted that the exercise was aimed at bringing systemic reforms, saying, “This is not just about looking into the past. This audit is the foundation for governance reforms in Delhi’s power sector. Its real success will be measured by the corrective actions, stronger regulation and greater accountability that follow."
Calling for cooperation from all stakeholders, the minister added, “We have followed every legal process with complete transparency, and now we expect full cooperation from all the DISCOMs. With the blessings of the people of Delhi, we are committed to cleaning up the power sector and building a system that is transparent, accountable and works only in the public interest."
According to the order, all concerned authorities and the three power distribution companies have been directed to extend full cooperation and provide all records, information and assistance required by the CAG or its authorised officers for carrying out the audit.
The order also states that the audit should preferably be completed within three months from the date of communication of the order, although the CAG may extend the timeline depending on the scope and complexity of the exercise.
