Para 2.6.7 — MSO (Audit)
Original Rule Text
2.6.7 Sub-section (1) also confers on the Comptroller and Auditor General the right of access, for the purpose of scrutiny under that Sub-section, to the books and accounts of the beneficiary body or authority. However, in terms of Sub-section (2), if the beneficiary is a corporation and its parent legislation provides for audit of its accounts by some other agency, the Comptroller and Auditor General can have the right of access to its books and accounts only if he is authorized so to do by the President or the Governor of the State or the Administrator of the Union Territory having a Legislative Assembly, as the case may be. Such authorisation can be given only after consultation with the Comptroller and Auditor General and after giving a reasonable opportunity to the corporation to make representations with regard to the proposal to give the Comptroller and Auditor General the right of access to its books and accounts.
# C. Audit under Section 20
What This Means
Section 15(1) gives the CAG the right to access a beneficiary body's books and accounts for scrutiny purposes. However, if the beneficiary is a corporation with its own statutory auditor, the CAG can access its books only with authorization from the President/Governor/UT Administrator. This authorization can only be given after consulting the CAG and giving the corporation a reasonable opportunity to make representations against the proposal.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG has right of access to beneficiary body's books under Section 15(1)
- 2For corporations with their own statutory auditor, special authorization is needed
- 3Authorization comes from President/Governor/UT Administrator
- 4CAG must be consulted before authorization is given
- 5The corporation must be given reasonable opportunity to make representations
Practical Example
The CAG wants to scrutinize how a public sector financial corporation used a Rs 500 crore loan from the Consolidated Fund. The corporation has its own auditors appointed under its founding Act. Before the CAG can access the corporation's books, the Governor must authorize it — but first, the corporation is given a chance to explain why CAG access may not be necessary (perhaps because its own auditors already verify grant conditions). Only after considering these representations can authorization be granted.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does a corporation get the right to object to CAG access?▼
Does this limitation apply to all bodies or only corporations?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.