Important Judgements

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5. IV. Arun Kumar Aggarwal Vs Union of India in the Supreme Court of India

IV. Arun Kumar Aggarwal Vs Union of India
in the Supreme Court of India
W.P. (Civil) 469 OF 2012
Decided on: 9-5-2013
(Before Hon'ble Justice K. S. Radhakrishnan & Justice Dipak Misra)

CAG Audit Report as a basis for a grant of relief or initiating action

In this case, the Supreme Court considered, whether a CAGAudit Report by itself can be accepted by the Court to grant relief or as a basis for initiating action. The Court held that CAG's 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.

Extracts of the Judgement

We have referred to the report of the CAG, the role of the PAC and the procedure followed in the House, only to indicate that the CAG report is always subject to scrutiny by the Parliament and the Government can always offer its view on the report of the CAG.

The question that is germane for consideration, in this case, is whether this court can grant reliefs merely placing reliance on the CAG's report. The CAG's report is always subject to parliamentary debates and it is possible that PAC can accept the ministry's objection to the CAG report or reject the report of the CAG. The CAG indisputably is an independent constitutional functionary, however, it is for the Parliament to decide whether after receiving the report i.e. PAC to make its comments on the CAG's report.

We may, however, point out that since the report is from a Constitutional functionary, it commands respect and cannot be brushed aside as such, but it is equally important to examine the comments what respective ministries have to offer on the CAG's report. The Ministry can always point out if there is any mistake in the CAG's report or the CAG has inappropriately appreciated the various issues.

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