Overview
- The Delhi High Court on Monday refused to quash a June 6 show-cause notice and dismissed petitions by BSES Rajdhani and BSES Yamuna as premature, leaving the notice’s procedural steps intact.
- The notice, issued under Section 20(3) of the CAG Act, requires the companies to submit representations and appear for a hearing before the lieutenant governor or other competent authority.
- Justice Tejas Karia said the Supreme Court’s 2025 regulatory‑assets judgment does not bar a CAG review so long as any audit follows the CAG Act’s statutory procedures and affords the discoms a hearing.
- The High Court decision sits alongside earlier APTEL orders that set aside the LG’s prior approval for a CAG audit and directed an independent chartered‑accountant audit, and parties have kept appeals open with APTEL and the Supreme Court.
- The outcome will decide which institution audits more than Rs 38,000 crore in regulatory assets, a choice that could affect consumer electricity bills and political accountability and that will next turn on the LG hearing and further court challenges.