Delhi HC refuses to stay CAG’s scheduled exit conference for Delhi discoms

The Delhi High Court today refused to postpone the exit conference based on an application moved by power distribution companies in Delhi, stating that they needed time to respond to the alleged loss of 4,000 crore rupees imputed to the companies by the CAG’s draft report..The said exit conference is the penultimate step in a process that involves finalizing of the draft audit report conducted of the power companies..Senior Counsel Kapil Sibal who appeared for two of the power companies, BSES Rajdhani Power Limited and BSES Yamuna Power Limited submitted before Chief Justice G Rohini & Justice RS Endlaw that the draft audit report imputed losses of Rs 4,000 crores on the companies and yet there was no breakup of the costs that was provided to the companies..“If your report says that I have caused a loss, please tell me under what heads have you calculated that amount so that I can also respond accordingly. Their regulations itself state that I need to submit a written reply. Instead, they tell me come to the exit conference. At least give me an opportunity to explain myself.”.When the Bench questioned the other side as to why the exit conference could not be postponed again (it was earlier scheduled to be held in September), Senior counsel Paras Kuhad appearing for the CAG submitted that the guidelines given to them required the entire process to be completed within a period of 8 months..Taking into account these submissions, the Bench then directed the Petitioners that they could file a reply based on whatever material was available to them under the draft report (the Bench had earlier directed for the complete draft report to be furnished to the discoms) and participate in the exit conference which is scheduled to be held between October 12-14 this year..The Bench also granted liberty to the companies to address their grievances in the exit conference, which are to be duly considered by the Delhi Government as well as the CAG. It further held that the Court should be notified of the outcome of the exit conference and listed the matter for October 15.