Supreme Court dismisses plea on CAG, says it can audit government functions

NEW DELHI: Observing that the " CAG is not a munim (accountant)" the Supreme Court today dismissed a plea challenging the Comptroller and Auditor General's power to conduct performance audit of controversial allocation of coal blocks by the UPA government.

A bench of justices R M Lodha and A R Dave said the CAG is a constitutional authority entitled to review and conduct performance audit on revenue allocations relating to the Centre, the states and the Union territories.

"The CAG is not a munim. He is a constitutional authority who can examine the revenue allocation and matters relating to the economy," the bench told counsel Santosh Paul, who appeared for petitioner Arvind Gupta.

The apex court said it was for the Parliament to consider, accept or reject the CAG's findings.

Interpreting various provisions of the Constitution, the bench said the CAG is a constitutional authority who is under a mandate to place before Parliament or the State legislature concerned its findings and, hence, it was for the respective legislatures to act upon such reports.