Regulation 92 — Audit Regulations 2020
Original Rule Text
92. Audit of bodies and authorities under Section 15 of the Act
(1) Under Section 15 of the Act, where any grant or loan is given for any specific purpose from the Consolidated Fund of India or of any State or of any Union Territory having a legislative assembly to any authority or body, not being a foreign state or international organisation, the Comptroller and Auditor General is authorized to scrutinise the procedures by which the
Regulations on Audit and Accounts 2020 53
sanctioning authority satisfies itself as to the fulfillment of the conditions subject to which such grants or loans were given.
(2) The President or the Governor of a State or the Administrator of a Union Territory having a legislative assembly, as the case may be, if he is of the opinion that it is necessary to do so in public interest and after consultation with the Comptroller and Auditor General, may relieve the Comptroller and Auditor General from making any such scrutiny in respect of any body or authority receiving such grant or loan.
What This Means
When the government gives a grant or loan from the Consolidated Fund for a specific purpose, the CAG has the right to check whether the sanctioning authority properly verified that the conditions attached to that grant or loan were fulfilled. However, the President or Governor can exempt a particular body from this CAG scrutiny if it is in the public interest, but only after consulting the CAG first.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Applies to grants/loans from the Consolidated Fund given for a specific purpose
- 2CAG scrutinizes the sanctioning authority's verification process — not just the end-use
- 3The focus is on whether conditions attached to the grant/loan were actually fulfilled
- 4Exemption from CAG scrutiny requires Presidential/Governor order AND prior CAG consultation
- 5Foreign states and international organizations are excluded from this provision
Practical Example
The Ministry of Housing grants Rs 500 crore to a State Housing Board specifically for constructing houses for EWS families. The CAG examines whether the Ministry verified that the Housing Board actually built those houses as per the conditions — correct specifications, target beneficiaries, completion timelines. If the Ministry signed off without proper verification, that itself becomes an audit finding.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the CAG audit the grantee body directly under this regulation?▼
Can the government exempt a body from CAG scrutiny unilaterally?▼
Does this apply to loans given by state governments as well?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.