Regulation 109 — Audit Regulations 2020
Original Rule Text
109. Audit under Section 19(3) of the Act
As per Section 19(3) of the Act, the Governor of a State or the Administrator of a Union Territory having a legislative assembly may, where he is of the opinion that it is necessary in the public interest so to do, request the Comptroller and Auditor General to audit the accounts of a corporation established by law made by the legislature of the State or of the Union Territory, as the case may be, and where such request has been made, the Comptroller and Auditor General shall audit the accounts of such corporation and shall have, for the purposes of such audit, right of access to the books and accounts of such corporation.
No such request shall be made except after consultation with the Comptroller and Auditor General and after giving reasonable opportunity to the corporation to make representation with regard to the proposal for such audit.
Regulations on Audit and Accounts 2020
What This Means
Under Section 19(3) of the CAG's Act, the Governor of a State or UT Administrator can request the CAG to audit a corporation set up by state/UT law, if they believe it is in the public interest. Before making such a request, the Governor must consult the CAG and give the corporation a reasonable opportunity to make representations. Once the request is accepted, the CAG gets full access to the corporation's books and accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Governor/UT Administrator can request CAG audit of state-law corporations under Section 19(3)
- 2Pre-condition: must be 'in the public interest'
- 3Mandatory consultation with CAG before making the request
- 4Corporation must be given reasonable opportunity to make representations
- 5Upon acceptance, CAG gets right of access to all books and accounts
Practical Example
The Governor of Maharashtra, concerned about financial irregularities in a state-established housing corporation, considers requesting a CAG audit. Before doing so, the Governor's office consults the CAG on feasibility and gives the corporation 30 days to submit its views on the proposal. After considering all inputs, if the Governor proceeds, the CAG gets full access to audit the corporation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the corporation refuse the CAG audit after the Governor's request?▼
Does this apply to all state corporations automatically?▼
Can the CAG initiate this audit on their own?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.