Para 2.6.6 — MSO (Audit)
Original Rule Text
2.6.6 Section 15 of the Act describes the functions of the Comptroller and Auditor General in the case of a grant or loan given for any specific purpose from the Consolidated Fund of India or of a State or Union Territory having a Legislative Assembly to any authority or body. Under Sub-section (1) of this Section, the Comptroller and Auditor General is responsible for scrutinizing the procedures by which the authority sanctioning such grants or loans satisfies itself as to the fulfilment of the conditions subject to which such grants or loans were given. Such scrutiny by the Comptroller and Auditor General is, however, not attracted where the beneficiary body or authority is a foreign State or international organization. In other cases too, the President or the Governor of a State or the Administrator of a Union Territory having a Legislative Assembly, as the case may be, may, if he considers it necessary in the public interest, relieve the Comptroller and Auditor General from making such scrutiny. However, prior consultation with the Comptroller and Auditor General is necessary in these cases.
What This Means
Under Section 15, the CAG scrutinizes whether the government authority that sanctioned a specific-purpose grant or loan has properly verified that the conditions attached to it were fulfilled. The CAG also has the right to access the recipient's books and accounts. However, this scrutiny does not apply to grants/loans given to foreign states or international organizations. The President/Governor can also exempt certain bodies from this scrutiny, but must consult the CAG before doing so.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 15 deals with specific-purpose grants/loans from the Consolidated Fund
- 2CAG scrutinizes whether the sanctioning authority verified compliance with grant conditions
- 3CAG has right of access to the recipient's books and accounts under Section 15(1)
- 4Exempted: grants to foreign states or international organizations
- 5President/Governor can exempt other bodies from scrutiny, but must consult CAG first
Practical Example
The Ministry of Health gives a Rs 10 crore grant to a state government specifically for setting up 50 primary health centers. Under Section 15, the CAG reviews whether the Ministry verified that the state actually built the health centers, met the specified standards, and spent the money only on the designated purpose. The CAG team accesses the state's health department records to confirm these facts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How does Section 15 differ from Section 14?▼
Can Section 15 scrutiny be avoided?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.