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[2012] 8 S.C.R. 1058
ARVIND GUPTA
v.
UNION OF INDIA AND ORS.
(Writ Peition (Civil) No. 393 of 2012)
OCTOBER 1, 2012
[R.M. LODHA AND ANIL R. DAVE, JJ.]
Comptroller & Auditor General's (Duties, Powers and
Conditions of Services) Act, 1971 - s.16 - Regulations on
C Audit and Accounts, 2007 framed under the 1971 Act- Power
of the Comptroller and Auditor General of India (GAG) to give
performance audit report - Regulations framed under the
1971 Act empowering the GAG to conduct petiormance audit
- If violative of the Constitution - Held: CA G's function to carry
out examinations into economy, efficiency and effectiveness
D with which Government has used its resources is inbuilt in the
1971 Act - Petiormance audit reports prepared under the
Regulations have to be viewed accordingly -
No
unconstitutionality in the Regulations - More-over, Audit
reports submitted by GAG are subject to scrutiny by the
E Parliament or the Legislature of the State, as the case may
be - Constitution of India, 1950 - Articles 149 and 151.
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CIVIL ORIGINAL JURISDICTION : Writ Petition (Civil) No.
393 of 2012.
Under Article 32 of the Constitution of India.
Santosh Pual, Mohita Bagai (for Harish Pandey) for the
Petitioner.
The following Order of the Court was delivered by
ORDER
1. We have heard Mr. Santosh Paul, learned counsel for
the petitioner.
2. Learned counsel for the petitioner submits that the
Comptroller and Auditor General of India (CAG) has no power
to give performance audit report and the Regulations on Audit
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1058
ARVIND GUPTA v. UNION OF !NOIA
1059
and Accounts, 2007 (for short "Regulations") framed under the
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Comptroller & Auditor General's (Duties, Powers and
Conditions of Services) Act, 1971 (for short "1971 Act")
empowering the CAG to conduct performance audit are
violative of the Constitution.
3. Article 149 of the Constitution of India provides that
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CAG 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. In pursuance of Article 149 of the
Constitution, 1971 Act has been enacted. Amongst other c
provisions in 1971 Act, Section 16 provides that it shall be the
duty of the CAG 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
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designed to secure an effective check on the assessment,
collection and proper allocation of revenue and are being duly
observed and for this purpose make such examination of the
accounts as he thinks fit and report thereon.
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· 4. CAG's function to carry out examinations into economy,
efficiency and effectiveness with which Government has used
its resources is inbuilt in the 1971 Act. Performance audit
reports prepared under the Regulations have to be viewed
accordingly. We find no unconstitutionality in the Regulations.
More-over Article 151 of the Constitution provides that the
reports of CAG 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 and the reports 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. The audit reports, which are submitted by CAG
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are, thus, subject to scrutiny by the Parliament or the Legislature
of the State, as the case may be.
5. Writ Petition is wholly misconceived and is dismissed
accordingly.
B.B.B.
Writ Petition dismissed.
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