Sasi K.G., Roll No 87
01. INTRODUCTION
The Comptroller and Auditor
General (CAG) of India is a Constitutional
authority under Part V Chapter
V/Sub-part 7B/Articles 148-151 etc of the Constitution
of India. He audits
all receipts
and expenditure
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 CAG is also the head of the Indian Audit and Accounts
Department, the affairs of which are managed by officers of Indian Audit and Accounts Service,
and has over 58,000 employees across the country. CAG is ranked 9th in Indian order of precedence
and enjoys the same status as a judge of Supreme Court of India.[i]
02. HISTORY OF THE EVOLUTION OF THE POST OF COMPTROLLER AND AUDITOR GENERAL OF INDIA
01. A Brief
History:- The role of the CAG evolved in British India with Lord Canning initiating
a major administrative drive before the Mutiny of 1857. In May 1858, for the
first time, a separate department was set up with an Accountant General, who
was responsible for accounting and auditing the financial transactions under
the East India Company. After Mutiny, which was later called as the first
Independence movement of India, the British Crown took over and passed the
Government of India Act 1858. This laid the foundation stone of Imperial Audit.[ii]
The post was re-designated as Comptroller General of Accounts in 1866 and the
Comptroller and Auditor General in 1884. Under the Montagu-Chelmsford Reforms of 1919, and consequent Government of India Act, 1919 the post was renamed as
the Auditor General of India and it became independent of the government. The
Government of India Act 1935 strengthened the position of the Auditor General
of India by providing for the audit of Government of India and eleven
Provincial Governments with eleven Provincial Auditors General under him in a
federal set-up.[iii]
The Indian Independence Act, 1947 separating the British Empire into India and
Pakistan made some modifications and adaptations to the post of Auditor General
of India. Then existing Government of India (Audit and Accounts) Order 1936 was
adapted by the Indian Provisional Constitution Order, 1947. On 1949 November 26
Constitution of India was passed and it came into existence on 1950 January 26.
The post of the Auditor General of India was renamed as the Comptroller and
Auditor General of India.
02.
Etymology of the term Comptroller:- In the 15th century English, the word Controller
developed the alternate spelling Comptroller as a result of an association
between the first part of the word, cont, and an unrelated word count and its
variant, compt. Many people pronounce comptroller like controller but both are
acceptable. But the word Comptroller has a different meaning-someone who
maintains and audits business. Comptrollers are controllers but controllers are
not comptrollers.
03. Persons
holding office of Auditor General / Comptroller and Auditor General etc.:- The first Auditor General of India,
Hon. Sir Edmund Drummond took charge of his office on 16th November
1860 and continued in office for sixteen months. However he has been the head
of Audit Department from 1856.[iv] All the Auditor
Generals of India before independence were British. Sir Mager Frederic
Gauntlett who held office during 1912 and 1914 and between 6th July
1918 and 16th November 1929 is remembered for upholding the
independence and control of the Auditor General is another man of merit. Sir
Ernest Burdon held the office from 1929 to 1940. Sir Alexander Cameron Badenoch
was auditor general of India from 1940 to 1945. The last British Auditor
General was Sir Bertie Monro Staig who held office between 11th
April 1945 and 14th August 1948. A list of sixteen British Auditors
General of India are given in Appendix I.
Shri V. Narahari Rao, who
joined I.A.A.S. on 5th March 1917 became the first Indian Auditor
General of the free dominions of India on 15th August 1948. The present Comptroller and Auditor General of
India is Shashi Kant Sharma who holds office since 2013. A list of twelve
Comptroller and Auditors General of India are given in Appendix II.
03. AUDITOR GENERAL AND THE BRITISH CONSTITUTIONS OF INDIA
As far as the Comptroller
and Auditor General of India / Auditor General of India is concerned, there are
three stages of constitutional development. The Government of India Acts of 1833,
1858, 1912, 1915, 1919 and 1935 were called by the British as the Constitutions
of India.[v]
01. The Government of India Act of 1833
This Act did not consider
the appointment of an Auditor General of India. Hence it is irrelevant in this
paper.
02. The Government of India Act of 1858
This Act, passed on
August 2, 1858 was the real cause of the establishment of an audit authority in
British India in tune with the English accounting system. This Act moved by Lord
Stanley was termed as “An Act for the better Government of India.” The taking
over of the Governance of India by the Queen and the appointment of Secretary
of State of India who was responsible to the British Parliament and a Viceroy
and Governor-General of India who had ample powers necessitated a Government
audit mechanism similar to the British Audit System. However the appointment of
an Auditor General was made only in 1960 and the man the British found for
appointing to this post was Sir Edmund Drummond who had been a British barrister
by profession. The post however, being not based on any Statutory provision
existing then, but an only an extension of the British Auditing system, was
renamed as Comptroller General of Accounts in 1866 and the Comptroller and
Auditor General in 1884.
03. The Government of India Acts of 1912 and 1915
The Government of India
Act, 1912 was an attempt to address the grievances of Indian leaders in respect
of the inadequacies of The
Indian Councils Act, 1892, and The Indian Councils Act, 1909. The 1909 Act is
also called Minto-Morley Reforms. However these Acts did not
bring much change to the post of Comptroller and Auditor General at all.
04. The Government of India Act of 1919
The Government of India
Act, 1919 called Montagu-Chelmsford Reforms was the first Statute in India
having a reference to the Auditor General of India. Some of the most relevant
provisions of The Government of India Act, 1919 are reproduced below.
“Sec. 39. (1) An Auditor-General in
India shall be appointed by the Secretary of State in Council, and shall hold
office during His Majesty's pleasure. The Secretary of State in Council shall,
by rules, make provision for his pay, powers, duties, and conditions of employment,
or for the discharge of his duties in the case of a temporary vacancy or
absence from duty.
(2) Subject to any rules made by the Secretary of State in Council, no
office may be added to or withdrawn from the public service, and the emoluments
of no post may be varied, except after consultation with such finance authority
as may be designated in the rules, being an authority of the province or of the
Government of India, according as the post is or is not under the control of a local
Government.
Sec. 40. Rules made under this Part of this Act shall not be
Rules under Part IV made except with the concurrence of the majority of votes
at a meeting of the Council of India.”
Under Schedule I
Part I Central Subjects of the Act, by the inclusion in Sl. No. 15
of Department of the Comptroller and Auditor General, Comptroller and Auditor
General’s office came under the purview of Union Government. The Act also entrusted that
the Controller and Auditor-General should exercise more definite authority over
the audit staff of the Military Accounts Department. This Act also provided for
some basic accounting and audit procedure. It also constituted a Public
Accounts Committee constituted by the Legislature vide Rule 51 and 52 of the
Indian Legislative Rules framed under Section 67 (1) read with Section 129-A of
the Government of India Act,1919.[vi]
05. The Government of India Act of 1935
The Government of India
Act of 1935 has contributed much to the supremacy and control of
Auditor-General over all auditing matters. The Major provisions in respect of
Auditor-General and his Subordinate Statutory staff are given below.
“Sn.166. Auditor-General of India.- (1) There shall be an
Auditor-General of India, who shall he appointed by His Majesty and shall only
be removed from office in like manner and on the like grounds as a judge of the
Federal Court.
(2) The conditions of service of the Auditor-General shall be such as may
be prescribed by His Majesty in Council, and he shall not be eligible for further
office under the Crown in India afte.r he has ceased to hold his office.
Provided that neither the salary of an Auditor-General nor his rights in
respect of leave of absence, pension or age of retirement shall be varied to
his disadvantage after his appointment.
(3) The Auditor-General shall perform such duties and exercise such powers 'in
relation to the accounts of the Federation and of the Provinces as may be prescribed
by, or by rules made under, an Order of His Majesty in Council, or by any
subsequent Act of the Federal Legislature varying or extending such any Order:
Provided that no Bill or amendment for the purpose aforesaid shall be introduced
or moved without the previous sanction of the Governor-General in his discretion.
(4) The salary, allowances and pension payable to or in respect of an Auditor
General shall be charged on the revenues of the Federation, and the salaries allowances
and pensions' payable to or in respect of members of his staff shall be paid
out of those revenues.
Sn.167. Provincial Auditor-General.- (1) If a Provincial
Legislature after the expiration of two years from the commencement of Part III
of this Act passes an Act charging the salary of an Auditor-General for that
Province on the revenues of the Province, an Auditor-General of the Province
may be appointed by His Majesty to perform the same duties and to exercise the
same powers in relation to the audit of the accounts of the Province as would
be performed and exercised by the Auditor-General of India, if an
Auditor-General of the Province had not been appointed:
Provided that no appointment of an Auditor-General in a Province shall be made
until the expiration of at least three years from the date of the Act of the Provincial
Legislature by which provision is made for an Auditor-General of that Province.
(2) The provisions of the last preceding section shall apply in relation to
the Auditor-General of a Province and his staff as they apply in relation to the
Auditor-General of India and his staff, subject to the following modifications,
that is to say -
(a) a person who is, or bas been, Auditor-General of a Province shall be eligible
for appointment as Auditor-General of India;
(b) in subsection (3) of the said section, for the reference to the Federal
Legislature there shall be substituted a reference to the Provincial
Legislature, and for the reference to the Governor-General there shall be
substituted a reference to the Governor; and
(c) in subsection (4) of the said section for the reference to the revenues
of the Federation there shall he substituted a reference to the revenues of the
Province:
Provided that nothing in this section shall derogate from the power of the Auditor-General
of India to give such directions in respect to the accounts of Provinces as are
mentioned in the next succeeding section.
Sn.168. Power of Auditor-General of India to give directions as to
accounts:- The accounts of the Federation shall be kept in such form as the
Auditor-General of India may, with the approval of the Governor-General,
prescribe and, in so far as the Auditor-General of India may, with the like
approval, give any directions with regard to the methods or principles in
accordance with which any accounts of Provinces ought to be kept, it shall be the
duty of every Provincial Government to cause accounts to be kept accordingly.
Sn.169. Audit Reports:- The reports of the Auditor-General of India
relating to the accounts of the Federation shall be sub- reports submitted to
the Governor-General, who shall cause them to be laid before the Federal
Legislature, and the reports of the Auditor-General of India or of the
Auditor-General of the Province, as the case may be, relating to the accounts
of a Province shall be submitted to the Governor of the Province, who shall
cause them to be laid before the Provincial Legislature.
Sn.170. Auditor of Indian Home Accounts: - (1)
There shall be an Auditor of Indian Home Accounts who shall be appointed by the
Governor-General in his discretion and shall only be removed from office in
like manner and on the like grounds as a judge of the Federal Court.
(2) The conditions of service of the Auditor of Indian Home Accounts shall
be such as may be prescribed by the Governor-General in his discretion:
Provided that neither the salary of an Auditor of Indian Home Accounts nor
his rights in respect of leave of absence, pension or age of retirement shall
be varied to his disadvantage after his appointment.
(3) The Auditor of Indian Home Accounts shall perform such duties and
exercise such powers in relation to transactions in the United Kingdom
affecting the revenues of the Federation, of the Federal Railway Authority, or
of any Province, as may be prescribed by, or by rules made under, an Order of
His Majesty in Council, or by any Act of the Federal Legislature varying or extending
such an Order:
Provided that no Bill or amendment for the purpose aforesaid shall be
introduced or moved without the prior sanction of the Governor-General in his
discretion.
(4) The reports of the Auditor of Indian Home Accounts relating to such
transactions as aforesaid shall be submitted to the Auditor-General of India,
or, in the case of transactions affecting the revenues of a Province which has
an Auditor-General, to the Auditor-General of the Province, and shall be
included by any such Auditor-General in the reports which under this Part of this
Act he is required to submit to the Governor-General or, as the case may be, to
the Governor.
(5) The Auditor of Indian Home Accounts shall be subject to the general
superintendence of the Auditor-General of India.
(6) The salary, allowances and pension payable to or in respect of the
Auditor of Indian Home Accounts shall be charged on the revenues of the
Federation, and the salaries, allowances and pensions payable to or in respect
of members of his staff shall be paid out of those revenues.
(7) His Majesty in Council may require the Auditor of Indian Home Accounts
to perform in relation to Burma all or any of the functions which he performs
in relation to India, and may fix the payments to be made in respect of his
services from the revenues of Burma to the revenues of the Federation, and may
make such incidental and consequential provision as may appear to him to be proper.
Sn.171. Audit of accounts relating to the discharge of the functions of the
Crown in relation to Indian states:- The accounts relating to the
discharge of the functions of the Crown in its relations with Indian States shall
be audited by the Auditor-General of India, or, in so far as those accounts
concern transactions in the United Kingdom, by the Auditor of Indian Home
Accounts acting on his behalf and under his general superintendence, and the
Auditor-General of India shall make to the Secretary of State annual reports on
the accounts so audited by him or on his behalf.”
On the audit of Railway Authority Government of India Act, 1935 provides
that,
“Sn.190. Audit and Annual Reports:- (1) The accounts of the
receipts and expenditure of the Authority shall be audited and certified by, or
on behalf of, the Auditor-General of India.
(2) The Authority shall publish annually a report of their operations
during the preceding year and a statement of accounts in a form approved by the
Auditor-General.”
On the Special provisions as to staffs of the High Commissioner for India
and the Auditor of Indian Home Accounts, Government of India Act, 1935
provides,
“Sn.251. Staff of High Commissioner and Auditor of Indian Home Accounts:- The
provisions of this Part of this Act shall apply in relation to appointments to,
and to persons serving on, the staffs of the High Commissioner for India and
the Auditor of Indian Home Accounts as if the service of members of those
staffs were service rendered in India:
Provided that-
(a) appointments to the staff of the Auditor of Indian Home Accounts shall
be made by him subject, as respects numbers, salaries and qualifications, to
the approval of the Governor-General in his discretion ; and
(b) in relation to that staff the functions of the Governor-General under
this Part of this Act shall be exercised by him in his discretion.
Sn.252. Conditions of service of existing staff of High Commissioner and
Auditor of Indian Home Accounts:- (1) All persons who
immediately before the commencement of Part III of this Act were members of the
staff of the High Commissioner for India, or members of the staff of the
Auditor of the accounts of the Secretary of State in Council, shall continue to
be, or shall become, members of the staff of the High Commissioner for India or,
as the case may be, of the Auditor of Indian Home Accounts.
(2) All such persons as aforesaid shall hold their offices or posts subject
to like conditions of service as to remuneration, pensions or otherwise, as theretofore,
or not less favourable conditions, and shall be entitled to reckon for purposes
of pension any service which they would have been entitled to reckon if this
Act had not been passed.
(3) The salaries, allowances and pensions payable to, or in respect of,
such of the persons aforesaid as were members of the staff of the Auditor of
the accounts of the Secretary of State in Council shall be charged on the
revenues of the Federation, and the salaries, allowances and pensions payable
to, or in respect of, other such persons as aforesaid shall be so charged in so
far as those salaries, allowances and pensions would, but for the passing of
this Act, have been payable without being submitted to the vote of the
Legislative Assembly of the Indian Legislature.”
On an overall vision, Government of India Act, 1935 has acted as the
foundation for the provisions contained in the Constitution of India.
06. The Constitutional Assembly debates
As in the case of many important constitutional issues, the Constitutional
Assembly did not give any attention to role the Comptroller and Auditor
General. Nowhere in the thousands of pages of Constitutional Assembly debates,
is the name ‘Comptroller and Auditor General’ mentioned. With a little
adaptations, the drafting committee retained the basic provisions of the
Government of India Act, 1935 in the draft of the Constitution and the same was
passed silently.
04. COMPTROLLER AND AUDITOR GENERAL UNDER THE CONSTITUTIONS OF INDIA
The Constitutional
Provisions in respect of the Comptroller and Auditor General of India are given
under Articles 112 (2) (e), 148-151, 279, 312A, 313, 377, Second
Schedule, Part E, Provisions as to the Comptroller and Auditor-General of
India, Third Schedule, Part IV, Form of oath or affirmation to be made by the Judges
of the Supreme Court and the Comptroller and Auditor-General of India, Sixth Schedule,
Provisions as to the Administration of Tribal Areas in the States of Assam,
Meghalaya, Tripura and Mizoram, Seventh Schedule, List I—Union List, Item 75
and Appendix II Re-statement, with reference to the present text of the
Constitution, of the exceptions and modifications subject to which the
Constitution applies to the State of Jammu and Kashmir (j) Article 150. They
are reproduced below.
“Art. 112. (1) The President shall in respect of every financial
year cause to be laid before both the Houses of Parliament a statement of the
estimated receipts and expenditure of the Government of India for that year, in
this Part referred to as the “annual financial statement”.
(2) The estimates of expenditure embodied in the annual financial statement
shall show separately—
(e) the salary, allowances and pension payable to or in respect of the
Comptroller and Auditor-General of India;
CHAPTER V.—COMPTROLLER AND AUDITOR-GENERAL OF INDIA
Art. 148. (1) There shall be a Comptroller and
Auditor-General of India who shall be appointed by the President by warrant
under his hand and seal and shall only be removed from office in like manner
and on the like grounds as a Judge of the Supreme Court.
(2) Every person appointed to be the Comptroller and Auditor-General of
India shall, before he enters upon his office, make and subscribe before the
President, or some person appointed in that behalf by him, an oath or affirmation
according to the form set out for the purpose in the Third Schedule.
(3) The salary and other conditions of service of the Comptroller and
Auditor-General shall be such as may be determined by Parliament by law and,
until they are so determined, shall be as specified in the Second Schedule:
Provided that neither the salary of a Comptroller and Auditor-General nor
his rights in respect of leave of absence, pension or age of retirement shall
be varied to his disadvantage after his appointment.
(4) The Comptroller and Auditor-General shall not be 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.
(5) Subject to the provisions of this Constitution and of any law made by Parliament,
the conditions of service of persons serving in the Indian Audit and Accounts Department
and the administrative powers of the Comptroller and Auditor-General shall be
such as may be prescribed by rules made by the President after consultation with
the Comptroller and Auditor-General.
(6) The administrative expenses of the office of the Comptroller and
Auditor-General, including all salaries, allowances and pensions payable to or
in respect of the persons serving in that office, shall be charged upon the
Consolidated Fund of India.
Procedure for appointment of Comptroller and Auditor General of India was discussed in N. Gopalaswami & Ors v. The Union of India & Anr. in WP(C) 4619/2013
The word 'misbehaviour' when employed in respect of holders of high offices has a well understood and well defined meaning according to the tradition and standards maintained by the members of a particular service or office.[vii]
Procedure for appointment of Comptroller and Auditor General of India was discussed in N. Gopalaswami & Ors v. The Union of India & Anr. in WP(C) 4619/2013
The word 'misbehaviour' when employed in respect of holders of high offices has a well understood and well defined meaning according to the tradition and standards maintained by the members of a particular service or office.[vii]
The Comptroller and Auditor-General's Manual of the Standing Orders, Para
262-A and Fundamental Rule 25, have statutory force and crossing of efficiency
bar must be decided after consideration of confidential reports and work of the
employee. Deferring the order by authority without applying its mind to these
aspects is liable to be quashed.[viii]
The Comptroller and Auditor General of India performs duties and exercises
powers in relation to the accounts of the Union and the States; his is a single
office and a single Department, the Indian Audit and Accounts Department.
Consequently, the regulation of the recruitment and conditions of service of
persons serving in his Department cannot be regarded as a matter falling within
the domain of the President under the proviso to Art. 309. A special provision
under Art. 148(5) necessary to entrust the President with that power, has been
made. The two powers under Art. 148(5) and the proviso to Art. 309 are separate
and distinct; they are not mutually complementary. The reference to the proviso
to Art. 309 in the recital of the Notification publishing the Indian Audit and
Accounts Department (Subordinate Accounts Service and Subordinate Railway Audit
Service) Service Rules, 1974 is meaningless and must be ignored.[ix]
Art. 148(5) does not bar the Government to set up an expert-body like the
Pay Commission to consider the revision of pay of the Indian Audit and Accounts
Department employees, particularly, when the revised pay-scales for the Section
Officers in the Department were enforced after consultation with the
Comptroller and Auditor-General of India.[x]
Where a circular regarding reservation for the Scheduled Castes and
Scheduled Tribes employed in the matter of promotion in the Audit and Accounts
Department was issued not in the name of the President but by the Comptroller
and Auditor-General after proper consultation with the Government, held, the
infirmity of its not being issued in the name of the President related only to
the form, not the substance. The circular affects the service conditions of the
persons in the Audit and Accounts Department; it ought to have been issued in
the name of the President. But having been approved by the Government and being
in accord with the Government's declared policy, the Comptroller and
Auditor-General could not be restrained from enforcing it.[xi]
Art. 148 (5) confers power on the President to frame rules operating prospectively only; the Indian Audit and Accounts Department (Subordinate Accounts Service and Railway Audit Service) Service Rules, 1974 have no retrospective operation. Rule (1) (2) thereof where by the Rules are deemed to have come into force on 27th July, 1956 is ultra vires.[xii]
Art. 148 (5) confers power on the President to frame rules operating prospectively only; the Indian Audit and Accounts Department (Subordinate Accounts Service and Railway Audit Service) Service Rules, 1974 have no retrospective operation. Rule (1) (2) thereof where by the Rules are deemed to have come into force on 27th July, 1956 is ultra vires.[xii]
Art. 149. The Comptroller and Auditor-General shall perform
such duties and exercise such powers in relation to the accounts of the Union
and of the States and of any other authority or body as may be prescribed by or
under any law made by Parliament and, until provision in that behalf is so
made, shall perform such duties and exercise such powers in relation to the
accounts of the Union and of the States as were conferred on or exercisable by
the Auditor-General of India immediately before the commencement of this
Constitution in relation to the accounts of the Dominion of India and of the
Provinces respectively.
The duties imposed on the Comptroller under the Audit Code which derives
its authority under Art. 149 of the Constitution are obviously statutory and
the powers given thereunder in regard to the payment of passage benefits have
to be exercised as warranted. Where the officer acted arbitrarily, a writ of
mandamus could be issued.[xiii]
The direction given by the Rules in the Account Code to a Government to put
any amount demanded by them in its appropriate classification is not of a
mandatory character. So even assuming that certain amounts ought to have been
put under the head "discretionary grants" and not under
"miscellaneous" the error or breach committed by the Government
cannot result in contravention of Arts. 149 and 150. It is only an irregularity
and it cannot render the whole or part of the grant void.[xiv]
Art. [[xv]150. The accounts of
the Union and of the States shall be kept in such form as the President may, [[xvi]on the advice of] the
Comptroller and Auditor-General of India, prescribe.]]
Along with Arts. 149 and 150 must be read Art. 202. The Budget and the
Annual Financial Statement must give such particulars of the receipts and expenditure
as would be necessary to satisfy the requirements of the Comptroller and
Auditor-General for maintaining the accounts. The receipts and the expenditure
must be classified in the Budget as indicated in the list of major Heads of Accounts.
Failure to do so will amount to noncompliance with Arts. 149 and 150 which are
as much binding on the State Government and the Legislature as any other
provision in the Constitution bearing on the powers of the Government and the
Legislature.[xvii]
Art. 151. (1) The reports of the Comptroller and
Auditor-General of India relating to the accounts of the Union shall be
submitted to the President, who shall cause them to be laid before each House
of Parliament.
(2) The reports of the Comptroller and Auditor-General of India relating to
the accounts of a State shall be submitted to the Governor ***[xviii] of the State, who shall cause
them to be laid before the Legislature of the State.
In Arun Kumar Aggarval v. Union of
India W.P.(Civil) 469 of 2012 Supreme Court held that CAG Audit Report is
always subject to scrutiny by the Parliament and it is for the Parliament to
decide whether after receiving the report to make its comments on the CAG’s
report.
Art. 279. (1) In the foregoing provisions of this Chapter, “net
proceeds” means in relation to any tax or duty the proceeds thereof reduced by
the cost of collection, and for the purposes of those provisions the net
proceeds of any tax or duty, or of any part of any tax or duty, in or attributable
to any area shall be ascertained and certified by the Comptroller and
Auditor-General of India, whose certificate shall be final.
(2) Subject as aforesaid, and to any other express provision of this
Chapter, a law made by Parliament or an order of the President may, in any case
where under this Part the proceeds of any duty or tax are, or may be, assigned
to any State, provide for the manner in which the proceeds are to be
calculated, for the time from or at which and the manner in which any payments
are to be made, for the making of adjustments between one financial year and
another, and for any other incidental or ancillary matters.
Art. [[xix]312A. (1) Parliament
may by law—
(a) vary or revoke, whether prospectively or retrospectively, the
conditions of services as respects remuneration, leave and pension and the
rights as respects disciplinary matters of persons who, having been appointed
by the Secretary of State or Secretary of State in Council to a civil service
of the Crown in India before the commencement of this Constitution, continue on
and after the commencement of the Constitution (Twenty-eighth Amendment) Act,
1972, to serve under the Government of India or of a State in any service or
post;
(b) vary or revoke, whether prospectively or retrospectively, the
conditions of service as respects pension of persons who, having been appointed
by the Secretary of State or Secretary of State in Council to a civil service
of the Crown in India before the commencement of this Constitution, retired or otherwise
ceased to be in service at any time before the commencement of the Constitution
(Twenty-eighth Amendment) Act, 1972:
Provided that in the case of any such person who is holding or has held the
office of the Chief Justice or other Judge of the Supreme Court or a High
Court, the Comptroller and Auditor-General of India, the Chairman or other
member of the Union or a State Public Service Commission or the Chief Election
Commissioner, nothing in sub-clause (a) or sub-clause (b) shall be construed as
empowering Parliament to vary or revoke, after his appointment to such post,
the conditions of his service to his disadvantage except in so far as such
conditions of service are applicable to him by reason of his being a person appointed
by the Secretary of State or Secretary of State in Council to a civil service
of the Crown in India.
(2) Except to the extent provided for by Parliament by law under this
article, nothing in this article shall affect the power of any Legislature or
other authority under any other provision of this Constitution to regulate the
conditions of service of persons referred to in clause (1).
(3) Neither the Supreme Court nor any other court shall have jurisdiction
in—
(a) any dispute arising out of any provision of, or any endorsement on, any
covenant, agreement or other similar instrument which was entered into or executed
by any person referred to in clause (1), or arising out of any letter issued to
such person, in relation to his appointment to any civil service of the Crown
in India or his continuance in service under the Government of the Dominion of
India or a Province thereof;
(b) any dispute in respect of any right, liability or obligation under
article 314 as originally enacted.
(4) The provisions of this article shall have effect notwithstanding
anything in article 314 as originally enacted or in any other provision of this
Constitution.]
Art. 313. Until other provision is made in this behalf under
this Constitution, all the laws in force immediately before the commencement of
this Constitution and applicable to any public service or any post which continues
to exist after the commencement of this Constitution, as an all-India service
or as service or post under the Union or a State shall continue in force so far
as consistent with the provisions of this Constitution.
Art. 377. The Auditor-General of India holding office immediately
before the commencement of this Constitution shall, unless he has elected
otherwise, become on such commencement the Comptroller and Auditor-General of
India and shall thereupon be entitled to such salaries and to such rights in
respect of leave of absence and pension as are provided for under clause (3) of
article 148 in respect of the Comptroller and Auditor-General of India and be
entitled to continue to hold office until the expiration of his term of office
as determined under the provisions which were applicable to him immediately
before such commencement.
(Second Schedule)
PART E
PROVISIONS AS TO THE COMPTROLLER AND AUDITOR-GENERAL OF INDIA
12. (1) There shall be paid to the Comptroller and Auditor-General of India a
salary at the rate of [xx]four thousand rupees per
mensem.
(2) The person who was holding office immediately before the commencement
of this Constitution as Auditor-General of India and has become on such
commencement the Comptroller and Auditor-General of India under article 377
shall in addition to the salary specified in subparagraph (1) of this paragraph
be entitled to receive as special pay an amount equivalent to the difference
between the salary so specified and the salary which he was drawing as
Auditor-General of India immediately before such commencement.
(3) The rights in respect of leave of absence and pension and the other conditions
of service of the Comptroller and Auditor-General of India shall be governed or
shall continue to be governed, as the case may be, by the provisions which were
applicable to the Auditor-General of India immediately before the commencement
of this Constitution and all references in those provisions to the
Governor-General shall be construed as references to the President.
(Third Schedule)
IV
Form of oath or affirmation to be made by the Judges of the Supreme Court
and the Comptroller and Auditor-General of India:—
“I, A.B., having been appointed Chief Justice (or a Judge) of the Supreme Court
of India (or 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, [[xxi]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 judgment perform the duties of my office
without fear or favour, affection or ill-will and that I will uphold the
Constitution and the laws.”
(Sixth Schedule)
Provisions as to the Administration of Tribal Areas in [[xxii]the States of Assam,
Meghalaya, Tripura and Mizoram]
7. District and Regional Funds.—
[[xxiii](3) The accounts of the
District Council or, as the case may be, the Regional Council shall be kept in
such form as the Comptroller and Auditor-General of India may, with the
approval of the President, prescribe.
(4) The Comptroller and Auditor-General shall cause the accounts of the District
and Regional Councils to be audited in such manner as he may think fit, and the
reports of the Comptroller and Auditor-General relating to such accounts shall
be submitted to the Governor who shall cause them to be laid before the
Council.]
(Seventh Schedule)
List I—Union List
75. Emoluments, allowances, privileges, and rights in respect of leave of
absence, of the President and Governors; salaries and allowances of the
Ministers for the Union; the salaries, allowances, and rights in respect of
leave of absence and other conditions of service of the Comptroller and
Auditor-General.
Appendix
II
Re-statement,
with reference to the present text of the Constitution, of the exceptions and
modifications subject to which the Constitution applies to the State of Jammu
and Kashmir
(j) Article 150:- For “as the President may, on the advice of the
Comptroller and Auditor-General of India, prescribe” substitute “as the
Comptroller and Auditor-General of India may, with the approval of the
President prescribe.”
In addition to the above Constitutional provisions, there has been statutes
giving duties, functions, powers and responsibilities to the Comptroller and Auditor-General
of India.
05. COMPTROLLER AND AUDITOR GENERAL UNDER VARIOUS STATUTES
The main Statutes giving power to the Comptroller
and Auditor-General of India are The
Government of India (Audit and Accounts) Order 1936, Comptroller
and Auditor General (Conditions of Service) Act 1953, and Comptroller and
Auditor General's (Duties, Powers, and Conditions of Service) Act, 1971. Let us
consider them separately
01. The Government of India (Audit and Accounts) Order 1936
Under Section 168 of the Government of India Act, 1935, "The accounts
of the Federation shall be kept in such form as the Auditor General of. India
may, with the approval of the Governor General, prescribe and, in so far as the
Auditor General of India may, with the like approval, give any directions with
regard to the methods or principles in accordance with which any accounts of Provinces
ought to be kept, it shall be the duty of every Provincial Government to cause
accounts to be kept accordingly". The Government of India (Audit and Accounts)
Order, 1936 spelt out specifically the accounting functions in paras 11 to 17,
as under:
"11(1) Subject to the provisions of this paragraph, the Auditor
General shall be responsible for the keeping of the accounts of the Dominion
and of each Province) other than accounts of the Dominion relating to defence
or railways and accounts relating to transactions in the United Kingdom.
(2) As respects accounts of the Dominion, the Governor General, and as
respects accounts of a Province, the Governor, may after consultation with the
Auditor General, make provision by rules for relieving the Auditor General from
responsibility for the keeping of the
accounts of any particular service or department.
(3) The Governor General may, after consultation with the Auditor General,
make provision by rules relieving the Auditor General from responsibility for
keeping accounts of any particular class or character.
(4) The Auditor General shall, from the accounts kept by him and by the other
persons responsible for keeping public accounts, prepare in each year accounts
(including in the case of accounts kept by him) appropriation accounts showing
the annual receipts and disbursements for the purposes of the Dominion and each
Province, distinguished under the respective heads thereof and shall submit those
accounts to the Dominion Government or, as the case may be, to the Government
of the Province on such dates as he may, with the concurrence of the Government
concerned, determine.
(5) Notwithstanding anything in this paragraph, the Auditor General shall
comply with any general or special orders of the Governor General or, as the
case may be, a Governor as to the head of account under which any specified
transaction or transactions of any specified class is, or are, to be included.
In issuing any such order as aforesaid the Governor General or Governor
shall consult the Auditor General.
12. It shall be the duty of the Auditor General to prepare annually, in
such form as he, with the concurrence of the Governor General, may determine,
and to submit to the Governor General a General Financial Statement
incorporating a summary of the accounts of the Dominion and of all the
Provinces for the last preceding year and particulars of their balances and
outstanding liabilities, and containing such other information as to their financial
position as the Governor General may direct to be included in the statement.
15. It shall be the duty of the Auditor General, so far as the accounts for
the keeping of which he is responsible enable him so to do, to give to the
Dominion Government and to the Government of every Province such information as
they may from time to time require, and such assistance in the preparation of
their annual financial statements as they may reasonably ask for.
16. The Dominion and every Province shall give to him such information as
he may require for the preparation of any account or report, which it is his
duty to prepare.
17. The Auditor General shall have authority to inspect any office of
Accounts, which is under the control of the Dominion or of a Province, including
Treasuries and such offices responsible for the keeping of initial or
subsidiary accounts as submit accounts to him.[xxiv]
19. Anything which under this order is directed to be done by the Auditor- General
may be done by an officer of his department authorised by him, either generally
or specially:
Provided that except during the absence of the Auditor-General on leave or otherwise,
an officer shall not be authorised to submit on his behalf any report which the
Auditor-General is required by the Act[xxv] to submit to the
Governor-General or the Governor of a Province."[xxvi]
There are many other functions also to be exercised by
the Auditor General. However, it is no more mentioned here. The Initial and
Subsidiary Account Rules 1937 made under The Government of India (Audit and Accounts)
Order, 1936 are given in Appendix III.
02. The Comptroller and Auditor General (Conditions of Service) Act 1953
The Comptroller and Auditor General (Conditions of
Service) Act, 1953 [Act
No. 21 or 1953] came into force on 17th May, 1953. This Act had a Preamble and
4 Sections. Section 2 of the Act It provided for a term of six years from the
date on which the Comptroller and Auditor General enters upon his office. His
resignation shall be addressed to the President of India. Section 3 of the Act
deals with the Pension payable to Comptroller and Auditor-General. Section 4 of
the Act refers to the Second Schedule to the Constitution for the other service
conditions of the Comptroller and Auditor General. These provisions were
already mentioned earlier. The Comptroller and Auditor General (Conditions of Service)
Act, 1953 is reproduced in Appendix IV.
03. The Comptroller and Auditor General's (Duties, Powers, and Conditions of Service) Act, 1971
Comptroller
and Auditor General's (Duties, Powers, and Conditions of Service) Act, 1971
[Act No. 56 of 1971] came into force on 15.12.1971. This Act had four Chapters
and 26 Sections. The first Chapter is Preliminary dealing with Short Title and
Definitions. Chapter II ranging from Sections 3 to 9 focuses on the salary and
other conditions of service of the Comptroller and Auditor General. Chapter II
deals in detail with the duties and powers of the Comptroller and Auditor
General in Sections 10 to 20. Chapter IV comprising of Sections 21 to 26
provides miscellaneous provisions such as delegation of power, power to make
rules by Central Government and power to make regulations by the Comptroller
and Auditor General, power to dispense with detailed audit, repeal and removal
of doubts. This Act repeals The
Comptroller
and Auditor General (Conditions of Service) Act, 1953. It is also made clear
that on the commencement of It shall be
convenient to deal with the duties and powers of the Comptroller and Auditor
General under a separate heading.
06. DUTIES FUNCTIONS POWERS AND RESPONSIBILITIES OF THE COMPTROLLER AND AUDITOR GENERAL
The duties, functions, powers and responsibilities of the
Comptroller and Auditor General can be discussed under various headings.
01. Duties, functions, powers and responsibilities of the Comptroller and Auditor General under Constitution of India
The
Constitutional Duties of the Comptroller and Auditor General are general but
wide in nature. They can be summarized as under.
01. Duty of the Comptroller and Auditor General to perform duties and powers as may be prescribed by or under any law made by Parliament
Article 149, authorizes the Comptroller and Auditor-General to perform such
duties and exercise such powers in relation to the accounts of the Union and of
the States and of any other authority or body as may be prescribed by or under any
law made by Parliament. Until provision is so made, the state immediately
before the commencement of the Constitution in relation to the accounts of the
Dominion of India and of the Provinces respectively would follow. This duty
includes the Keeping of Accounts and Entitlements and Auditing of the Accounts,
Performance etc of the Union Government, State Governments, Union Territories,
Any Authorities or Bodies.
In Arvind Gupta v. Union of India 2013 SCC 293 Supreme Court has observed
that, “CAG’s functions to carry out examination into economy, efficiency and
effectiveness with which the Government has used its resources, is in-built in
the 1971 Act. Performance Audit Reports prepared under the Regulations have to
be viewed accordingly. There is no unconstitutionality in the Regulations.
However, in K.
Satyanarayanan and Ors. v. Union Of India and Ors ILR 1996 Delhi 34, Delhi High
Court has opined, “In our considered opinion, the question as to whether the accounts of
the Reserve Bank of India, State Bank of India and other public sector banks
and financial institution should be under the compulsory audit jurisdiction of
Comptroller and Auditor General or not is a matter which is not to be
considered by us but exclusively falls within the domain and jurisdiction of
the Legislature. It is not a matter which is within our sphere and reach and
that it would not be appropriate for us to exercise our extraordinary
jurisdiction to assume to ourselves a supervisory role over matters falling
exclusively within the purview of legislative wisdom of the Parliament.”
The Bombay High Court in Raghunath Shankar Kelkar v. Union of India
PIL No. 40 of 2008, did not consider it appropriate to direct Comptroller and
Auditor General to estimate the profit and loss to the country in the light of the
depletion in the Currency and Gold Revaluation Account of the Reserve Bank and
the interest paid on the Scheme over the years and to file a detailed report
before this Court or to the President of India for laying before the House of
Parliament, particularly in the context of a public interest petition.
In Shri. S. Subramaniam Balaji v. The
Government of Tamil Nadu and Others Civil Appeal 5130 of 2013, Supreme Court of
India observed that in addition to the Legislative control, the founding
fathers of the Constitution have also thought it fit to keep a check on
Government account and express through the agency outside the Legislature also.
Article 148 has created a Constitutional functionary in the form of CAG of
India. CAG examines the propriety, legality and validity of all expenses
incurred by the Government and exercises effective control over the Government
accounts.
02. Duty of the Comptroller and Auditor General to Advice the President to prescribe the form of the accounts of the Union and the States
Article 150 of the Constitution provides that it is the duty of the Comptroller
and Auditor General to advice the President of the form of accounts to be
maintained by the Union and the States. However as per Appendix II of the
Constitution of India, dealing with Re-statement, with reference to the present
text of the Constitution, of the exceptions and modifications subject to which
the Constitution applies to the State of Jammu and Kashmir, vide para (j), a
modification in Article 150 is made as far as Jammu and Kashmir State is
concerned that ‘For “as the President may, on the advice of the Comptroller and
Auditor-General of India, prescribe” substitute “as the Comptroller and Auditor-General
of India may, with the approval of the President prescribe.”’ Thus in Jammu and
Kashmir, changing of forms of accounts may be a little more difficult for the Comptroller
and Auditor General.
03. Duty of the Comptroller and Auditor General to submit Reports to the President / Governor for laying before the Parliament or Legislature of the State
Article
151 (1) provides that the reports of the Comptroller and Auditor-General of India
relating to the accounts of the Union shall be submitted to the President, who
shall cause them to be laid before each House of Parliament. Article
151 (2) provides that the reports of the Comptroller and Auditor-General of
India relating to the accounts of a State shall be submitted to the Governor of
the State, who shall cause them to be laid before the Legislature of the State.
04. Duty of the Comptroller and Auditor General to certify ‘net proceeds’
Under Article 279 (1) the Comptroller and Auditor General has to certify net
proceeds and his certificate shall be final in ascertaining any tax or duty.
05. Duty of the Comptroller and Auditor General to Advice the President to prescribe the form of the accounts of the Union and the States
In
the Sixth Schedule of the Constitution of India dealing with the Provisions
as to the Administration of Tribal Areas in the States of Assam, Meghalaya, Tripura
and Mizoram under Para 7. District and Regional Funds Sub para (3) the accounts
of the District Council or, as the case may be, the Regional Council shall be
kept in such form as the Comptroller and Auditor-General of India may, with the
approval of the President, prescribe. Under Sub-para (4) The Comptroller and
Auditor-General shall cause the accounts of the District and Regional Councils
to be audited in such manner as he may think fit, and the reports of the
Comptroller and Auditor-General relating to such accounts shall be submitted to
the Governor who shall cause them to be laid before the Council.
02. Duties, functions, powers and responsibilities of the Comptroller and Auditor General under Comptroller and Auditor General's (Duties, Powers, and Conditions of Service) Act, 1971
Even
though the duties, functions, powers and responsibilities of the Comptroller
and Auditor-General as per Comptroller and Auditor General's (Duties, Powers, and
Conditions of Service) Act, 1971 has its foundation in the duties, functions,
powers and responsibilities mentioned in the Constitution of India, the 1971
Act defines them with much clarity. The concerned sections are found in Chapter
III of the Act ranging from Section 10 to 20. They are detailed below.
01. Duty of the Comptroller and Auditor General to compile accounts of the Union and the States
Section 10 deals with this topic it runs,
“10. (1) The Comptroller and Auditor-General shall be responsible-
(a) for compiling the accounts of the Union and of each State from the
initial and subsidiary accounts rendered to the audit and accounts offices
under his control by treasuries, offices or departments responsible for keeping
of such accounts; and
(b) for keeping such accounts in relation to any of the matters specified
in clause (a) as may be necessary:
[[xxvii]Provided that the
President may, after consultation with the Comptroller and Auditor-General, by
order, relieve him from the responsibility for compiling-
(i) the said accounts of the Union (either at once or gradually by the issue
of several orders); or
(ii) the accounts of any particular services or departments of the Union:
Provided further that the Governor of a State may, with the previous
approval of the President and after consultation with the Comptroller and
Auditor-General, by order, relieve him from the responsibility for compiling-
(i) the said accounts of the State (either at once or gradually by the
issue of several orders); or
(ii) the accounts of any particular services or departments of the State:]
[[xxviii]Provided also] that the
President may, after consultation with the Comptroller and Auditor-General, by
order, relieve him from the responsibility for keeping the accounts of any
particular class or character.
(2) Where, under any arrangement a person other than the Comptroller and Auditor-General
has, before the commencement of this Act, been responsible-
(i) for compiling the accounts of any particular service or department of the
Union or of a State, or
(ii) for keeping the accounts of any particular class or character, such
arrangement shall, notwithstanding anything contained in subsection (1),
continue to be in force unless, after consultation with the Comptroller and
Auditor-General, it is revoked in the case referred to in clause (i), by an
order of the President or the Governor of the State, as the case may be, and in
the case referred to in clause (ii), by an order of the President.”
02. Duty of the Comptroller and Auditor General to prepare and submit accounts to the President, Governors of States and Administrators of Union territories having Legislative Assemblies
Section 11 deals with this topic it runs,
“11. The Comptroller and Auditor-General shall, from the accounts compiled by
him or [[xxix]by the Government or any
other person responsible on that behalf], prepare in each year accounts
(including, in the case of accounts compiled by him, appropriation accounts)
showing under the respective heads the annual receipts and disbursements for
the purpose of the Union, of each State and of each Union territory having a
Legislative Assembly, and shall submit those accounts to the President or the
Governor of a State or Administrator of the Union territory having a
Legislative Assembly, as the case may be, on or before such dates as he may,
with the concurrence of the Government concerned, determine.
[[xxx]Provided that the President
may, after consultation with the Comptroller and Auditor-General, by order,
relieve him from the responsibility for the preparation and submission of the
accounts relating to annual receipts and disbursements for the purpose of the
Union or of a Union territory having a Legislative Assembly;
Provided further that the Governor of a State may, with the previous
approval of the President and after consultation with the Comptroller and
Auditor-General, by order, relieve him from the responsibility for the
preparation and submission of the accounts relating to annual receipts and
disbursements for the purpose of the State.]”
03. Duty of the Comptroller and Auditor General to give information and render assistance to the Union and States
Section 12 deals with this topic it runs,
“12. The Comptroller and Auditor- General shall, in so far as the accounts, for
the compilation or keeping of which he is responsible, enable him so to do,
give to the Union Government, to the State Governments or to the Governments of
Union territories having Legislative Assemblies, as the case may be, such information
as they may, from time to time, require, and render such assistance in the
preparation of their annual financial statements as they may reasonably ask
for.”
04. Duty of the Comptroller and Auditor General in respect of General provisions relating to audit
Section 13 deals with this topic it runs,
“13. It shall be the duty of the Comptroller and Auditor-General-
(a) to audit all expenditure from the Consolidated Fund of India and of
each State and of each Union territory having a Legislative Assembly and to
ascertain whether the moneys shown in the accounts as having been disbursed
were legally available for and applicable to the service or purpose to which
they have been applied or charged and whether the expenditure conforms to the
authority which governs it;
(b) to audit all transactions of the Union and of the States relating to
Contingency Funds and Public Accounts;
(c) to audit all trading, manufacturing, profit and loss accounts and
balance sheets and other subsidiary accounts kept in any department of the
Union or of a State; and in each case to report on the expenditure,
transactions or accounts so audited by him.”
05. Duty of the Comptroller and Auditor General in Audit of receipts and expenditure of bodies or authorities substantially financed from Union or State Revenues
Section 14 deals with this topic it runs,
“[[xxxi]14
(1) Where anybody or authority is substantially financed by grants or loans from
the Consolidated Fund of India or of any State or of Union territory having a Legislative
Assembly, the Comptroller and Auditor General shall, subject to the provisions
of any law for the time being in force applicable to the body or authority, as
the case may be, audit all receipts and expenditure of that body or authority
and to report on the receipts and expenditure audited by him.
Explanation:- Where the grant or loan to a body or authority
from the Consolidated Fund of India or of any State or of any Union territory
having a Legislative Assembly in a financial year is not less than [[xxxii]rupees twenty five lakhs] and
the amount of such grant or loan is not less than seventy five per cent of the total
expenditure of that body or authority, such body or authority shall be deemed,
for the purposes of [[xxxiii]this sub-section] to be
substantially financed by such grants or loans as the case may be.]
[[xxxiv](2) Notwithstanding
anything contained in sub-section the Comptroller and Auditor-General may, with
the previous approval of the President or the Governor of a State or the Administrator
of a Union territory having a Legislative Assembly, as the case may be, audit
all receipts and expenditure of any body or authority where the grant or loan
to such body or authority from the Consolidated Fund of India or of any State,
or of any Union territory having a Legislative Assembly, as the case may be, in
a financial year is not less than rupees one crore.
(3) Where the receipts and expenditure of any body or authority are, by
virtue of the fulfillment of the conditions specified in sub-section (1) or
sub-section (2) audited by the Comptroller and Auditor General in a financial
year, he shall continue to audit the receipts and expenditure of that body or
authority for a further period of two years notwithstanding that the conditions
specified in subsection (1) or sub-section (2) are not fulfilled during any of
the two subsequent years.]”
06. Duty of the Comptroller and Auditor General in the case of grants or loans given to other authorities or bodies
Section 15 deals with this topic it runs,
“15. (1) Where any grant or loan is given for any specific purpose from the Consolidated
Fund of India or of any State or of any Union territory having a Legislative
Assembly to any authority or body, not being a foreign State or international
organisation, the Comptroller and Auditor-General shall scrutinize the
procedures by which the sanctioning authority satisfies itself as to the fulfillment
of the conditions subject to which such grants or loans were given and shall
for this purpose have right of access, after giving reasonable previous notice,
to the books and accounts of that authority or body:
Provided that the President, the Governor of a State or the Administrator
of a Union territory having a Legislative Assembly, as the case may be, may, where
he is of opinion that it is necessary so to do in the public interest, by
order, relieve the Comptroller and Auditor General, after consultation with
him, from making any such scrutiny in respect of any body or authority
receiving such grant or loan.
(2) Except where he is authorised so to do by the President, the Governor
of a State or the Administrator of a Union territory having legislative
Assembly, as the case may be, the Comptroller and Auditor General shall not
have, while exercising the powers conferred on him by sub-section (1), right of
access to the books and accounts of an corporation to which any such grant or
loan as is referred to in sub-section (1) is given if the law by or under which
such corporation has been established provides for the audit of the accounts of
such corporation by an agency other than the Comptroller and Auditor- General:
Provided that no such authorisation shall be made except after consultation
with Comptroller and Auditor-General and except after giving the concerned corporation
a reasonable opportunity of making representations with regard to the proposal
to give to the Comptroller and Auditor-General right of access to its books and
accounts.”
07. Duty of the Comptroller and Auditor General in Audit of receipts of Union or of States
Section 16 deals with this topic it runs,
“16. It shall be the duty of the Comptroller and Auditor-General to audit all receipts
which are payable into the Consolidated Fund of India and of each State and of
each Union territory having a Legislative Assembly and to satisfy himself that
the rules and procedures in that behalf are designed to secure an effective check
on the assessment, collection and proper allocation of revenue and are being
duly observed and to make for this purpose such examination of the accounts as
he thinks fit and report thereon.”
08. Duty of the Comptroller and Auditor General in Audit of accounts of stores and stock
Section 17 deals with this topic it runs,
“17. The Comptroller and Auditor-General shall have authority to audit and report
on the accounts of stores and stock kept in any office or department of the Union
or of a State.”
09. Duty of the Comptroller and Auditor General in connection with audit of accounts
Section 18 deals with this topic it runs,
“18. (1) The Comptroller and Auditor-General shall in connection with the performance
of his duties under this Act, have authority-
(a) to inspect any office of accounts under the control of the Union or of
a State, including treasuries and such offices responsible for the keeping of initial
or subsidiary accounts, as submit accounts to him;
(b) to require that, any accounts, books, papers and other documents which deal
with or form the basis of or are otherwise relevant to the transactions to
which his duties in respect of audit extend, shall be sent to such place as he
may appoint for his inspection;
(c) to put such questions or make such observations as he may consider necessary,
to the person in charge of the office and to call for such information as he
may require for the preparation of any account or report which it is his duty
to prepare.
(2) The person in charge of any office or department, the accounts of which
have to be inspected and audited by the Comptroller and Auditor-General, shall afford
all facilities for such inspection and, comply with requests for information in
as complete a form as possible and with all reasonable expedition.”
10. Duty of the Comptroller and Auditor General in Audit of Government companies and corporations
Section 19 deals with this topic it runs,
“19. (1) The duties and powers of the Comptroller and Auditor General in
relation to the audit of the accounts of Government companies shall be
performed and exercised by him in accordance with the provisions of the
Companies Act, 1956 (1 of 1956).
(2) The duties and powers of the Comptroller and Auditor-General in
relation to the audit of the accounts of corporations (not being companies)
established by or under law made by Parliament shall be performed and exercised
by him in accordance with the provisions of the respective legislations.
(3) The Governor of a State or the Administrator of a Union territory
having a Legislative Assembly may, where he is of opinion that it is necessary
in the public interest so to do, request the Comptroller and Auditor-General to
audit the accounts of a corporation established by law made by the Legislature
of the State or of the Union territory, as the case may be, and where such
request has been made, the Comptroller and Auditor-General shall audit the
accounts of such corporation and shall have, for the purposes of such audit,
right of access to the books and accounts of such corporation:
Provided that no such request shall be made except after consultation with
the Comptroller and Auditor-General and except after giving reasonable opportunity
to the corporation to make representations with regard to the proposal for such
audit.”
In the Judgment dated 27.01.2010, Delhi High Court in National Dairy Development Board v. Union of India & the Comptroller & Auditor General Writ Petition (Civil) No.2748 of 1998 has observed, “In a given case, audit by CAG may be permissible under Sections 14 or 19 of the CAG Act or scrutiny may be permissible under Section 15 of the CAG Act. If audit under Section 19(2) is to be done then of course resort to Section 14(2) or Section 15 may not be required. However, CAG has the right to conduct audit under Sections 14(2) and 15 even when it does not have authority to conduct audit under the statute by which the corporation has been established.”
In the Judgment dated 27.01.2010, Delhi High Court in National Dairy Development Board v. Union of India & the Comptroller & Auditor General Writ Petition (Civil) No.2748 of 1998 has observed, “In a given case, audit by CAG may be permissible under Sections 14 or 19 of the CAG Act or scrutiny may be permissible under Section 15 of the CAG Act. If audit under Section 19(2) is to be done then of course resort to Section 14(2) or Section 15 may not be required. However, CAG has the right to conduct audit under Sections 14(2) and 15 even when it does not have authority to conduct audit under the statute by which the corporation has been established.”
Madras High Court in Society of Auditors v. Comptroller and Auditor
General Of India 2000 111 TAXMAN 516 Mad has held on 1 October, 1999,
“Similarly, the Comptroller and Auditor General of India ('C&AG;), the first
respondent in W.P. Nos. 12630 and 12631 of 1999, a constitutional authority
appointed by the President at India, by a warrant issued under article 148 of the Constitution of India, while discharging his duties under article 149 of the Constitution, read with section 619(3) of the Companies Act, is empowered to appoint auditors for auditing the accounts of the
Government Companies and Public Sector Undertakings and also empowered to
direct the manner in which the accounts of such Government Companies and Public
Sector Undertakings shall be audited by the auditors so appointed by the C&AG.”
11. Duty of the Comptroller and Auditor General in Laying of reports in relation to accounts of Government companies and corporations
Section 19A deals with this topic it runs,
“[[xxxv]19 A (1) The reports
of the Comptroller and Auditor-General, in relation to the accounts of a
Government company or a corporation referred to in section 19, shall be
submitted to the Government or Governments concerned.
(2) The Central Government shall cause every report received by it under
subsection (1) to be laid, as soon as may be after it is received, before each
House of Parliament. ,
(3) The State Government shall cause every report received by it under,
subsection (1) to be laid as soon as may be after it is received, before the
Legislature of the State.
Explanation:- For the purposes of this section,
"Government" or "State Government", in relation to a Union
territory having a Legislative Assembly, means the Administrator of the Union
territory.]”
12. Duty of the Comptroller and Auditor General in Audit of accounts of certain authorities or bodies
Section 20 deals with this topic it runs,
“20. (1) Save as otherwise provided in section 19, where the audit of the
accounts of any body or authority has not been entrusted to the Comptroller and
Auditor-General by or under any law made by Parliament, he shall, if requested
so to do by the President or the Governor of a State or the Administrator of a
Union territory having a Legislative Assembly, as the case may be, undertake
the audit of the accounts of such body or authority on such terms and
conditions as may be agreed upon between him and the concerned Government and
shall have, for the purposes of such audit, right of access to the books and
accounts of that body or authority:
Provided that no such request shall be made except after consultation with
the Comptroller and Auditor-General.
(2) The Comptroller and Auditor-General may propose to the President or the
Governor of a State or the Administrator of a Union territory having a
Legislative Assembly, as the case may be, that he may be authorised to
undertake the audit of the accounts of any body or authority, the audit of the
accounts of which has not been entrusted to him by law, if he is of opinion
that such audit is necessary because a substantial amount has been invested in,
or advanced to, such body or authority by the Central or State Government or by
the Government of a Union territory having a Legislative Assembly, and on such
request being made, the President or the Governor or the Administrator, as the
case may be, may empower the Comptroller and Auditor-General to undertake the
audit of the accounts of such body or authority.
(3) The audit referred to in sub-section (1) or
sub-section (2) shall not be entrusted to the Comptroller and Auditor-General
except where the President or the Governor of a State or the Administrator of a
Union territory having a Legislative Assembly, as the case may be, is satisfied
that it is expedient so to do in the public interest and except after giving a
reasonable opportunity to the concerned body or authority to make representations
with regard to the proposal for such audit.”
03. Miscellaneous Duties, functions, powers and responsibilities of the Comptroller and Auditor General
Chapter
IV comprising of Sections 21 to 26 of the Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Act, 1971 deals with the
Miscellaneous Powers of the Comptroller and Auditor General. They are
reproduced below.
01. Delegation of Power of Comptroller and Auditor-General
As per Section 21 (1) of the Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Act, 1971, “any
power exercisable by the Comptroller and Auditor-General under the provisions
of that Act, or any other law may be exercised by such officer of his department
as may be authorised by him in this behalf by general or special order. Section
21 (2) provides that except during the absence of the Comptroller and
Auditor-General on leave or otherwise, no officer shall be authorised to submit
on behalf of the Comptroller and Auditor-General any report which the
Comptroller and Auditor-General is required by the Constitution or the
Government of Union Territories Act, 1963 (20 of 1963) to submit to the
President or the Governor of a State or the Administrator of a Union territory
having a Legislative Assembly, as the case may be.
02. Power to make regulations
As per Section 23 of the Comptroller and Auditor General's (Duties, Powers, and
Conditions of Service) Act, 1971, the Comptroller and
Auditor-General is authorized to make regulations for carrying into effect the
provisions of that Act in so far as they relate to the scope and extent of
audit, including laying down for the guidance of the Government Departments the
general principles of Government accounting and the broad principles in regard
to audit of receipts and expenditure. Comptroller and Auditor General
have issued many regulations on different aspects of Audit and Accounts. An
example is Regulations on Audit and Accounts, 2007.
03. Power to dispense with detailed audit
As per Section 24 of the Comptroller and Auditor General's (Duties, Powers, and
Conditions of Service) Act, 1971, the Comptroller and
Auditor-General is authorized to dispense with, when circumstances so warrant,
any part of detailed audit of any accounts or class of transactions and to
apply such limited check in relation to such accounts or transactions as he may
determine.
04. Duties, functions, powers and responsibilities of the Comptroller and Auditor General as the head of Indian Audit and Accounts Department
The
Indian Audits and Accounts Department was formed in 1860 and Government
Accounting and Auditing functions were placed under the Auditor General of
India. Indian Audits and Accounts Service (IAAS) is one of the Group A
Central Civil Service of India. The cadre controlling authority for IAAS
is the Comptroller and Auditor General of India. He is also the head of Indian
Audits and Accounts Department. The selected candidates' training ground
is at National Academy of Audit and Accounts, Shimla (NAAA). NAAA also conducts Continuing Professional Education Programmes for Serving
Officers.
The
Functions of the CAG and IAAS Officers are primarily the following
1.
Conducts both regularity audit and efficiency-cum-performance audit of all
units and formations of the Union and State Governments, Government Companies,
Autonomous Bodies and such other organizations that are substantially financed
by the Union and State Governments.
2.
Compilation of accounts of the State Governments and in many states, regulation
and authorization of entitlements such as provident fund and pensionary
benefits of State Government employees.
3.
Scrutiny of intricate contracts, understanding of tax and revenue laws,
assessing the financial health of commercial corporations.
4.
Industry knowledge may be required for implementation of different country-wise
schemes for rural development, health services, education etc.
National Consumer Disputes Redressal
Commission in The Comptroller & Auditor General v. Shivkant Shankar Naik
and Bhuwan Revision Petition Nos. 961 of 1997, 933 of 2001, 1115 of 2001, 1319
of 2001 and 1775 of 2001 has observed on
13th December, 2002 as, “The decision of the Supreme Court in the
case of Regional Provident
Fund Commissioner vs. Shiv Kumar Joshi - (2000) 1 SCC 98 is clearly
distinguishable as that was rendered on the interpretation of the provisions of
the Employees Provident Funds and Miscellaneous
Provisions Act, 1952
and the Scheme framed thereunder. Shiv Kumar Joshi was not a government
employee. Here in this batch of revisions petitions all the complainants were
State Government employees and as such governed by the statutory rules
applicable to their respective service and for the purpose of raising service
dispute to go the State Administrative Tribunal wherever established or to any
authority except to the Forum under the Consumer Protection
Act, 1986 also
wherever established.
We hold that dispute raised by the
complainants-respondents is not 'consumer dispute' and they are not 'consumers'
and Accountant Generals are not running any service within the meaning of the Consumer Protection
Act, 1986.”
05. International Role of the Comptroller and Auditor General of India
Comptroller
and Auditor General of India has many international assignments, a few among
which are mentioned hereunder.
01. The International Organization of Supreme Audit Institutions (INTOSAI)
The International Organization of Supreme Audit Institutions
(INTOSAI) operates as an umbrella organization for the external government
audit community. INTOSAI is an autonomous, independent and non-political
organization.
INTOSAI has four
main Committees which are the vehicles for the achievement of its four
strategic goals. These Committees are;
1.
Professional Standards Committee (PSC)
2.
Capacity Building Committee (CBC)
3.
Knowledge Sharing and Knowledge Services Committee (KSC)
4.
Finance and Administrative Committee (FAC)
The Comptroller and Auditor General of India is chair of INTOSAI
Committee on Knowledge Sharing and Knowledge Services – (KSC) and its Steering
Committee. He is also chair of the INTOSAI Working Group on IT Audit (WGITA).
The Working Group on IT Audit (WGITA) was created in 1989 to address interests
of SAIs (Supreme Audit Institutions) in the area of IT Audit.[xxxvi]
02. The Asian Organization of Supreme Audit Institutions (ASOSAI)
The Asian Organization of Supreme
Audit Institutions (ASOSAI) (www.asosai.org) established in 1978, is one of the
seven regional working groups of INTOSAI. India is a charter member of ASOSAI.
The Comptroller and Auditor General
of India was the Chairman of ASOSAI from 2012-2015. Comptroller and Auditor General of India is
on the Governing Board of ASOSAI till 2018. The Comptroller and Auditor General
of India has played a vital role in all the ten research projects undertaken so
far by ASOSAI.[xxxvii]
03. Bilateral Relationships of Comptroller and Auditor General of India with the Supreme Audit Institutions of other Countries
Comptroller and Auditor General of India has bilateral
relationships with the Supreme Audit Institutions of Afghanistan, Bangladesh,
Bhutan, Brazil, Cambodia, China, Iran, Kuwait, Maldives, Mongolia, Oman,
Poland, Russia, South Africa, Ukraine, Venezuela and Vietnam.[xxxviii]
04. Global Audit Leadership Forum (GALF)
The Comptroller & Auditor General
of India is a member of the Global Audit Leadership Forum (GALF), formerly
known as Global Working Group (GWG). The GALF is a forum which provides a
select group of nineteen Auditors General to meet for organized yet informal
discussions on current and emerging issues of concern to their governments and
offices and to explore opportunities to share information and work closely
together. The next GALF meeting would be held at Copenhagen, Denmark from 17-19
May 2017.[xxxix]
05. Commonwealth Auditors General Conference
The Comptroller and Auditor General of India has been participating
actively in the triennial Conferences of Commonwealth Auditors' General. The
XXII Conference of Commonwealth Auditors' General was held at Malta from 24 to
27 March 2014 on the theme "Securing Independence of Supreme Audit
Institutions to Improve the Effectiveness of Reporting and Communication of
Audit Findings". The next Commonwealth Auditors General Conference will be
held at New Delhi, India from 21-23 March, 2017.[xl]
06. United Nations Panel of External Auditors
The United Nations General Assembly in
1959 established the Panel of External Auditors, comprising the individual
external auditors of the United Nations system, who are also Heads of Supreme
Audit Institutions. The findings and recommendations of Panel Members are taken
seriously, and the status of recommendations is closely monitored to ensure
timely and effective implementation. In this way, Panel Members contribute
significantly to the fulfillment of the Charter of the United Nations. Comptroller and Auditor General of India has
been the Chairman of the Panel of External Auditors during the period December
2011 to December 2013.[xli]
07. United Nations Board of Auditors
By Resolution 74 (I) of 7 December
1946, the General Assembly established the United Nations Board of Auditors to
audit the accounts of the United Nations organization and its funds and
programmes and to report its findings and recommendations to the Assembly
through the Advisory Committee on Administrative and Budgetary Questions. For
this, the General Assembly appoints three members, each of whom must be the
Auditor-General (or officer holding the equivalent title) of a Member State.
The members of the Board have joint responsibility for the audits. The
Comptroller and Auditor General of India has been appointed as a Member of the
UN Board of Auditors for the terms 1 July 2014 to 30 June 2020. 27 United Nations
Organizations is audited by the office of Comptroller and Auditor General of India w.e.f. 1st July, 2016.[xlii]
08. World Intellectual Property Organization (WIPO)
Established in 1967, World
Intellectual Property Organization is dedicated to promote innovation and
creativity for the economic, social and cultural development of all countries,
through a balanced and effective international intellectual property syst. It
has 185 member states. It is the United Nations’ agency dedicated to the use of intellectual
property (patents,
copyright, trademarks,
designs,
etc.) as a means of stimulating innovation and creativity. The Comptroller and
Auditor General of India is the External Auditor of World Intellectual Property
Organization (WIPO), Geneva till June 2018.[xliii]
09. Past International Audits
The Comptroller and Auditor General of
India has been the external auditor of the following UN Bodies / Agencies in
the past:
Sl. No.
|
Organization
|
Period
|
1
|
World Health Organization (WHO)
|
2004 to 2012
|
2
|
International Maritime Organization (IMO)
|
2000 to 2012
|
3
|
International Centre for Genetic Engineering and Biotechnology (ICGEB)
|
1996 to 2004
|
4
|
Food and Agriculture Organization (FAO)
|
2002 to 2008
|
5
|
Organization for Prohibition of Chemical Weapons (OPCW)
|
1997 to 2003
|
6
|
UN World Tourism Organization (UNWTO)
|
2000 to 2015
|
7
|
World Food Programme (WFP)
|
2010 to 2016
|
8
|
International Atomic Energy Agency (IAEA)
|
2010 to 2016
|
9
|
International Organization for Migration (IOM)
|
2010 to 2016
|
10
|
United Nations Board of Auditors
|
1993 to 1999
|
07. SOME FAMOUS AUDIT REPORTS OF COMPTROLLER AND AUDITOR GENERAL OF INDIA
Some prominent audit reports of Comptroller and Auditor
General of India are mentioned below.
01. 2G Spectrum Allocation Scam
A CAG report on issue of Licences and
Allocation of 2G Spectrum estimated that there was a presumptive loss of ₹1,766 billion by the Government. In a charge sheet filed on 2 April 2011 by Central Bureau of
Investigation (CBI),
the agency pegged the loss at ₹310 billion. 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
and the main accused. The court found that A. Raja "wanted to favour some companies
at the cost of the public exchequer" and "virtually gifted away
important national asset" Revenue loss calculation was further established
on 3 August 2012 when according to the directions of the Supreme Court, Government of India revised the reserve price for 2G
spectrum to ₹140 billion.
02. Coal Mine Allocation Scam
A 2012 Comptroller and Auditor General
of India report on Coal Mine Allocation criticized the Government by saying it
had the authority to allocate coal blocks by a process of competitive bidding,
but chose not to. 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 Comptroller and Auditor General of India
estimated that the "windfall gain" to the allocatees was ₹10,673 billion. The CAG Final Report tabled in
Parliament put the figure at ₹1,856 billion. 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. However, 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. The CBI officials investigating the case have speculated that
bribery may be involved.
03. Fodder scam
Fodder Scam was first exposed due to
the CAG report in the matter in December 1995 which alleged of fraudulent
withdrawal of government funds worth ₹9.5 billion in the Bihar animal husbandry
department against non-existent supplies of fodder and medicines. 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 under trial.
04. Krishna-Godavari (KG) D6 Gas Block
The oil ministry imposed a fine of Rs. 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. 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. 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% was paid to the government and rest 9% went to the operator as
profit.
However, in
Patel Vipulkumar RamjiBhai v. State of Gujarat and Others Writ Petition (PIL) No.3 of 2011 High Court of Gujarat has
held that, “we are not inclined to issue direction for investigation of a
case by the Central Bureau of Investigation or any other agency on the strength
of the various shortcomings, as reflected in the report of the CAG, since
the Public Accounts Committee of the State as well as the Special
Committee, constituted by the State Government, is in seisin of the report
of the CAG.”
08. CONCLUSION
Comptroller and Auditor General of India, by reason of his high office
and the nature of critical scrutiny for the purpose of fair and transparent
audit should be kept outside the purview of possible threats and influences of
the persons holding high office. That is why he is constitutionally equated to
a Supreme Court Judge. He is also barred from holding any subsequent office
under the Government of India. Comptroller and Auditor General of India is both an agency to
function on behalf of the Legislature to ensure that the executive complies
with the various laws passed by the Legislature in letter
and spirit and on behalf of
the Executive to ensure compliance by subordinate authorities with the rules
and orders issued by it. The Comptroller and Auditor General of India, the head
of the Indian Audit and Accounts Department, is independent of the Legislature and the Executive
but he is an officer created by the Constitution to see that diverse
authorities act in regard to all financial matters in accordance with the
Constitution and the laws and rules framed there under. The various scams
brought out by the Comptroller and
Auditor General of India recently shows how inefficiently and corruptly our
Government machinery is functioning. The recurring nature of such scams also
points towards the ineffectiveness of the moral effect of an efficient audit
system in India. Thus the praiseworthy efforts of Comptroller and Auditor
General of India to bring into light more and more scams only reveals how
inefficient is the Indian Audit Department functioning now. Former Comptroller
and Auditor General of India Vinod Rai has known this dilemma and suggested
some reforms. But these suggestions only addressed the defects in the
Governmental machinery and no self- retrospect was ever attempted by him or his
successors.
APPENDICISES
No.
|
Name of Auditor General of India
|
Year tenure began
|
Year tenure ended
|
1
|
Hon. Edmund Drummond
|
1860
|
1862
|
2
|
R.P. Harrison
|
1862
|
1867
|
3
|
E.F. Harrison
|
1867
|
1879
|
4
|
W. Waterfield
|
1879
|
1881
|
5
|
James Westland
|
1881
|
1889
|
6
|
E. Gay
|
1889
|
1891
|
7
|
S. Jacob
|
1891
|
1898
|
8
|
A.F. Cox
|
1898
|
1906
|
9
|
O.J. Barrow
|
1906
|
1910
|
10
|
R.W.Gillan
|
1910
|
1912
|
11
|
Sir Frederic Gauntlett
|
1912
|
1914
|
12
|
Sir R.A.Gamble
|
1914
|
1918
|
13
|
Sir Frederic Gauntlett
|
1918
|
1929
|
14
|
Sir Ernest Burdon
|
1929
|
1940
|
15
|
Sir Alexander Cameron
Bandenoch
|
1940
|
1945
|
16
|
Sir Bertie Monro Staig
|
1945
|
1948
|
No.
|
Comptroller and Auditor General of India
|
Year tenure began
|
Year tenure ended
|
1
|
1949
|
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
|
1984
|
1990
|
|
8
|
1990
|
1996
|
|
9
|
V. K. Shunglu
|
1996
|
2002
|
10
|
2002
|
2008
|
|
11
|
2008
|
2013
|
|
12
|
2013
|
As on date
|
In exercise of the powers conferred by
sub-paragraph (3) of paragraph 11 of the Government of India (Audit and
Accounts) Order, 1936, the Governor-General is pleased, after consultation with
the Auditor-General of India, to make the following rules—
1. (1) These rules may be called the Initial and
Subsidiary Accounts Rules.
(2) They shall come into force on the 1st April
1937.
2. In these rules—
(1) ‘Initial Accounts’ means a primary record of
all money transactions affecting the revenues of the Federation or of any
Province as they occur;
(2) The ‘Order’ means the Government of India
(Audit and Accounts) Order, 1936;
(3) ‘Treasuries’ includes all treasuries whether
under the control of the Federation or of a Province; and other terms and
expressions have the same meanings as have been assigned to them in the Order.
3. The Auditor-General of India from the date these
rules come into force shall be relieved from the responsibility for keeping
accounts of the under mentioned class or character:—
(a) Initial accounts required to be kept in
treasuries.
(b) Initial and subsidiary accounts that may be
required to be kept in any Office or Department of the Federation, or as the
case may be, of any Province;
(c) Accounts of stores and stock that may be
required to be kept in any Office or Department of the Federation or of a
Province by order of the Governor-General or of the Governor of the Province;
and
(d) Trading, Manufacturing and Profit and Loss
Accounts and Balance Sheets and any other subsidiary accounts that may be
required to be kept by order of the Governor-General or of the Governor of a
Province in any Department of the Federation or of the Province.
4. Nothing contained in Rule 3 shall be construed
as derogating from the authority of the Auditor-General of India—
(a) to require any treasury, office or department
keeping initial or subsidiary accounts to render accounts of such transaction
as are included in them to the audit and accounts offices under his control on
such dates as he may determine; or
(b) to prescribe the form in which such accounts
shall be rendered and in which the initial accounts, from which the accounts so
rendered are compiled or on which they are based, shall be kept.
APPENDIX IV The Comptroller and Auditor-General (Conditions of Service) Act, 1953
[Act No. 21 or 1953] [17th May, 1953]
PREAMBLE
An Act to regulate certain conditions of service of the Comptroller and Auditor General of India.
Be it enacted by Parliament as follows:-
An Act to regulate certain conditions of service of the Comptroller and Auditor General of India.
Be it enacted by Parliament as follows:-
Section
-1 Short title
This
Act may be called the Comptroller and Auditor-General (Conditions of Service)
Act, 1953.
Section -2 Term of office of Comptroller and Auditor-General
Section -2 Term of office of Comptroller and Auditor-General
A
Comptroller and Auditor-General of India shall hold office for a term of six
years from the date on which he enters upon his office:
Provided
that he may at any time by writing under his hand addressed to the President
resign his office.
Explanation.-For the purposes of this
section, the term of six years in respect of the Comptroller and
Auditor-General holding office immediately before the commencement of this Act
shall be computed from the 15th day of August, 1948.
Section
-3 Pension payable to Comptroller and Auditor-General
A
Comptroller and Auditor-General of India shall, on his retirement, be eligible-
(a)(i)
In the case of the Comptroller and Auditor-General holding office immediately
before the commencement of this Act, to such pension as may be admissible to
him under the rules for the time being applicable to the service to which he
belonged at the date on which he became the Comptroller and Auditor-General; or
(ii)
In the case of any other Comptroller and Auditor-General who was in the service
of the Government at the date of his appointment, to such pension as may be
admissible to him under the rules for the time being applicable to the service
to which he belonged at the date of his appointment; the service as Comptroller
and Auditor-General, in either case, being reckoned for the purposes of the
relevant rules as service for pension; and
(b)
To an additional pension of six hundred rupees per annum in respect of each
completed year of service as Comptroller and Auditor-General, such service in
respect of the Comptroller and Auditor-General holding office, immediately
before the commencement of this Act, being computed from the 15th day of
August, 1948;
Provided
that the aggregate of all pensions payable to the Comptroller and
Auditor-General shall not,--
(i)
In the case of a member of the Indian Civil Service, exceed one thousand pounds
sterling per annum; or
(ii)
In the case of a member of any other service, exceed twelve thousand rupees per
annum.
Section
-4 Other conditions of service of Comptroller and Auditor-General
Save
as otherwise expressly provided in this Act, the other conditions of service of
the Comptroller and Auditor-General of India shall be as specified in the
Second Schedule to the Constitution.
BIBLIOGRAPHY
1.
The Constitution of India
Volume 2, by Jaswant Singh and Deepak Arora, Published by Madras Law Journal
Office, Madras, 1992
2.
Auditing Standards, by
Indian Audit and Accounts Department, Published by the Comptroller and Auditor
General of India, Second Edition, 2002
3.
Standing Order on Role of
Audit in Relation to Cases of Fraud and Corruption, by and published by Office
of the Comptroller and Auditor General of India, 2006
4.
The Comptroller and
Auditor General of India, Analytical history, 1947-1989, Vol 1, by R.K.
Ckandrasekharan, Published by Ashish Publishing House, New Delhi, 1990
5.
The Comptroller and
Auditor General of India, Analytical history, 1947-1989, Vol 2, by R.K.
Ckandrasekharan, Published by Ashish Publishing House, New Delhi, 1990
6. The Constitution of India, Published by Government of India, Ministry of
Law and Justice, (Legislative Department), As on 9th November, 2015
7.
Compliance Auditing
Guidelines, Published by Comptroller and Auditor General of India, February 2016
8.
Brochure on Comptroller and Auditor General’s (Duties, Powers and Conditions of
Service) Act, 1971, Published by Comptroller and Auditor General of India,
January 2014
9.
Environment and Climate
Change Auditing Guidelines, Published by Comptroller
and Auditor General of India, August 2010
10.
Financial Attest Auditing Guidelines for Audit of Accounts of State Governments, Published by Comptroller and Auditor General of India, March 2015
11.
Financial Attest Auditing Manual, Published by Office of
the Comptroller and Auditor General of India, June 2009
12.
The Government of India
Act, 1935, Published by the Manager of Publications, Delhi, 1943
13.
The Indian Constitution,
by V.R. Subrahmanya Aiyar, Published by the Author, January, 1937
14.
Kerala Account Code
Volume 1, Published by Finance Department, Government of Kerala, 2013
15.
Performance Auditing
Guidelines 2014, Published by Comptroller and Auditor General of India, 2014
16.
Public Private
Partnerships (PPP) in Infrastructure Projects Public Auditing Guidelines,
Published by Comptroller and Auditor General of India, 2009
17.
Regulations on Audit and
Accounts, Published by Comptroller and Auditor General of India, 2007
18.
Implementation of Value Added
Tax in India – Lessons for transition to Goods and Service Tax – A Study report
Published by Comptroller and Auditor General of India, June 2010
19.
Style Guide, Published by
Office of the Comptroller and Auditor General of India, 2nd Edition
Reprint, June 2013
NOTES
[i] https://en.wikipedia.org/wiki/Comptroller_and_Auditor_General_of_India
[ii]
ibid
[iii] The Comptroller and Auditor General of India, Analytical history,
1947-1989, Vol 1, Page 1
[iv] http://thepeerage.com/p3061.htm#i30608
[v] The Indian Constitution, by V.R. Subrahmanya Aiyar
[vi] The Comptroller and Auditor General of India, Analytical history,
1947-1989, Vol 2, Page 290
[viii]
1968 Lab.I.C. 1551 (Del.)
[ix]
The Accountant General and another v. S. Doraiswamy and others A.I.R. 1981 S.C. 783:
(1981) 2 S.C.R. 185; (1981) 4 S.C.C. 93; 1981 U.J. 89 (S.C.)
[xi] Comptroller and Auditor General v. Mohan Lal Mehrotra
and Ors A.I.R.
1991 S.C. 2288; (1992) 1 S.C.C. 20; 1991 SCR
Supl. (1) 482; JT 1991 (4) 138; 1991 SCALE (2)789
[xii] The Accountant General and another v. S. Doraiswamy and others A.I. R. 1981 S.C. 783; (1981) 2 S.C.R. 155; (1981) 4 S.C.C. 93; 1981 U.J. (S.C.) 89
[xiii] N. Baksi v. Accountant General and Anr A.I.R. 1957 Pat. 515; I.L.R.
36 Pat. 357 1957 (5) BLJR 299
[xiv]
I.L.R. (1954) Nag. 764; A.I.R.
1955 Nag. 11
[xv]
Substituted by the
Constitution (Forty-second Amendment) Act, 1976, s. 27, for art. 150 (w.e.f.
1-4-1977).
[xvi] Substituted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 22,
for “after consultation with” (w.e.f. 20-6-1979).
[xvii]
A.I.R. 1955 Nag. 11
[xviii]
The words “or Rajpramukh”
omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Schedule
[xix] Inserted by the Constitution (Twenty-eighth Amendment)
Act, 1972, s. 2 (w.e.f. 29-8-1972).
[xx] The Comptroller and Auditor-General of India shall
be paid a salary equal to the salary of the Judges of the Supreme Court vide s.
3 of the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service)
Act, 1971 (56 of 1971). The salary of Judges of the Supreme Court has been
raised to Rs. 90,000 per mensem by the High Court and Supreme Court Judges
(Salaries and Conditions of Service) Amendment Act, 2009 (23 of 2009), s. 8
(w.e.f. 1-1-2006). This has already been raised in 2016 also.
[xxi] Inserted by the Constitution (Sixteenth Amendment)
Act, 1963, s. 5
[xxii]
Substituted by the State
of Mizoram Act, 1986 (34 of 1986), s. 39, for certain words (w.e.f. 20-2-1987)
[xxiii]
Subs. by the Assam
Reorganisation (Meghalaya) Act, 1969 (55 of 1969), s. 74 and Fourth Sch., for
sub-paragraph (2) (w.e.f. 2-4-1970)
[xxiv]
The Comptroller and Auditor General of India, Analytical
history, 1947-1989, Vol 1, Pages 4-5
[xxv]
‘The Act’ means the Government
of India Act, 1935, as adapted by the India (Provisional Constitution) Order,
1947
[xxvi]
Kerala Account Code Volume 1, Published by
Finance Department, Government of Kerala, Chapter I, Article 1, Page 5
[xxvii]
Comptroller
and Auditor General's (Duties, Powers, and Conditions of Service) Amendment
Act, 1976 [No. 45-F of 1976] sec.2(a)
[xxviii]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1976 [No. 45-F of
1976] sec.2(b)
[xxix]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1976 [No. 45-F of
1976] sec.3(a)
[xxx]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1976 [No. 45-F of
1976] sec.3(b)
[xxxi]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1984 [No. 2 of 1984]
sec.3 [w.e.f. 16.03.1984]
[xxxii]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1984 [No. 2 of 1984]
sec.3(a)(i) [w.e.f. 16.03.1984]
[xxxiii]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1984 [No. 2 of 1984]
sec.3(a)(ii) [w.e.f. 16.03.1984]
[xxxiv]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1984 [No. 2 of 1984]
sec.3(b) [w.e.f. 16.03.1984]
[xxxv]
Comptroller and Auditor General's
(Duties, Powers, and Conditions of Service) Amendment Act, 1984 [No. 2 of 1984]
sec.4 [w.e.f. 16.03.1984]
[xxxvi]
http://www.cag.gov.in/content/involvement-intosai
[xxxvii]
http://www.cag.gov.in/content/involvement-asosai
[xxxviii]
http://www.cag.gov.in/content/bilateral-relations-sai-india
[xxxix]
http://www.cag.gov.in/content/global-audit-leadership-forum-and-other-multilateral-bodies
[xl]
ibid
[xli]
http://www.cag.gov.in/content/un-panel-external-auditors
[xlii]
http://www.cag.gov.in/content/un-panel-external-auditors
[xliii]
http://www.cag.gov.in/content/world-intellectual-property-organization-wipo
[xliv]
http://164.100.176.130/hindi/home/about_us/former.html
[xlv] https://en.wikipedia.org/wiki/Comptroller_and_Auditor_General_of_India
TABLE OF CASE LAWS
Arun Kumar Aggarval v. Union of India W.P.(Civil) 469 of 2012
|
Arvind Gupta v. Union of India 2013 SCC 293
|
Comptroller and Auditor General v. Mohan Lal Mehrotra and Ors A.I.R.
1991 S.C. 2288; (1992) 1 S.C.C. 20;
1991 SCR Supl. (1) 482; JT 1991
(4) 138; 1991 SCALE (2)789
|
K. Satyanarayanan and Ors. v. Union of India and Ors ILR 1996 Delhi 34
|
K. Vasudevan Nair and Others Etc. v. Union Of India and Others A.I.R.
1990 S.C. 2295
|
N. Baksi v. Accountant General and Anr A.I.R. 1957 Pat. 515; I.L.R. 36
Pat. 357 1957 (5) BLJR 299
|
N. Gopalaswami & Ors v. The Union of India & Anr. in WP(C)
4619/2013
|
National Dairy Development Board v. Union of India & The
Comptroller & Auditor General Writ Petition (Civil) No.2748 of 1998
|
Patel Vipulkumar RamjiBhai v. State of Gujarat and Others Writ
Petition (PIL) No. 3 of 2011
|
Raghunath Shankar Kelkar v. Union of India PIL No. 40 of 2008
|
S. Partap Singh Kairon 63 Punj.L.R.780
|
Shri. S. Subramaniam Balaji v. The Government of Tamil Nadu and Others
Civil Appeal 5130 of 2013
|
Society of Auditors v. Comptroller and Auditor General Of India 2000
111 TAXMAN 516 Mad
|
The Comptroller & Auditor General v. Shivkant Shankar Naik and
Bhuwan Revision Petition Nos. 961 of 1997, 933 of 2001, 1115 of 2001, 1319 of
2001 and 1775 of 2001
|
LIST OF ENACTMENTS AND RULES MENTIONED
|
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