Regulation 93 — Audit Regulations 2020
Original Rule Text
93. Access to books and accounts of grantee body or authority
(1) Under sub-section (1) of Section 15, the Comptroller and Auditor General is authorised to have access, with reasonable previous notice, to the books and accounts of the grantee body or authority for the purpose of scrutinising the procedures by which the sanctioning authority satisfies itself as to the fulfillment of the conditions attached to the Government assistance.
(2) Under sub-section (2) of Section 15, except where he is authorised so to do by the President, the Governor of a State or the Administrator of a Union Territory, as the case may be, the Comptroller and Auditor General shall not have, while exercising the powers conferred on him by Section 15(1), right of access to the books and accounts of any corporation to which any such grant or loan as is referred to in Section 15(1) is given if the law by or under which such corporation has been established provides for the audit of the accounts of such corporation by an agency other than the Comptroller and Auditor General. No such authorisation shall be made except after consultation with the Comptroller and Auditor General and after giving the concerned corporation a reasonable opportunity of making a representation in this regard.
What This Means
The CAG can access the books and accounts of any body that received a government grant or loan for a specific purpose, provided reasonable prior notice is given. However, if the grantee is a corporation whose own law already provides for audit by another agency, the CAG cannot access its books unless specifically authorized by the President or Governor — and such authorization requires consulting the CAG and giving the corporation a chance to object.
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 grantee body's books with reasonable prior notice
- 2Access is for scrutinizing whether grant/loan conditions were fulfilled
- 3Corporations with their own statutory auditor are protected — CAG needs special authorization
- 4Authorization requires both CAG consultation and giving the corporation a hearing
- 5This balances audit oversight with the autonomy of statutorily audited corporations
Practical Example
The CAG wants to examine the books of a State Cooperative Bank that received a government loan for rural credit expansion. Since the Cooperative Societies Act provides for audit by the Registrar of Cooperative Societies, the CAG cannot directly access the bank's records. The state Governor must first consult the CAG, give the bank an opportunity to make a representation, and then issue an authorization before CAG auditors can examine the bank's books.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What counts as 'reasonable previous notice' for accessing books?▼
Can a corporation refuse CAG access even after Presidential authorization?▼
What if the grantee is not a corporation but a society or trust?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.