LawChakra

Delhi High Court: Directive for Prompt CAG Audit to Enhance Financial Transparency of Delhi Jal Board (2018-2021)

DELHI HIGH COURT

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The Delhi High Court has ordered a detailed audit of the Delhi Jal Board’s finances for the financial years 2018-19, 2019-20, and 2020-21.

The Delhi High Court has shown its responsiveness to public concerns by mandating a detailed audit of the Delhi Jal Board’s financial records. This decision, prompted by a plea from Bharatiya Janata Party (BJP) leader Harish Khurana, demonstrates the court’s commitment to addressing issues raised by citizens. The Comptroller and Auditor General of India (CAG) has been tasked with scrutinizing the DJB’s financial dealings for the financial years 2018-19, 2019-20, and 2020-21.

The bench, headed by Acting Chief Justice Manmohan and including Justice Manmeet Pritam Singh Arora, wrapped up the proceedings by directing the Comptroller and Auditor General of India (CAG) to expedite the audit process. This decision follows Delhi Chief Minister Arvind Kejriwal’s announcement in December 2023, wherein he proposed a comprehensive CAG audit of the Delhi Jal Board’s accounts dating back to the financial year 2008-09. The move comes in response to allegations from the BJP regarding fund misappropriation.

Kejriwal’s announcement was aimed at clarifying the financial integrity of the DJB, stating,

“Things will become clearer now. …If someone has committed irregularities, they should be punished. If no irregularities have been committed, then those who levelled baseless allegations will get to know.”

Harish Khurana’s petition, filed in August 2021, sought not only an audit of the DJB’s accounts but also demanded the preparation of an annual statement detailing the water utility’s profit and loss, along with balance sheets from 2015 onwards, as mandated by law.

In October 2021, the Delhi Jal Board (DJB) responded to the petition, dismissing it as “politically motivated” and lacking in proper research. In an affidavit, the water utility defended its accounting practices, stating that all financial statements and balance sheets were prepared and audited in accordance with the Delhi Water Board Act and other applicable laws. The DJB emphasized its commitment to transparency, highlighting the use of a double-entry system of bookkeeping and regular maintenance of accounts.

The financial scrutiny of the Delhi Jal Board (DJB), a Delhi court extended the Enforcement Directorate’s (ED) custody of retired DJB chief engineer Jagdish Arora and contractor Anil Agarwal by five days. This extension is part of an ongoing money laundering investigation linked to alleged irregularities in DJB’s contract tendering processes. The ED’s inquiry was initiated following a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in 2022.

The CAG’s audit will not only scrutinize the financial management of the DJB but also aim to restore public trust in the institution’s operations. This case highlights the ongoing challenges and complexities in managing public resources, underscoring the need for continuous oversight and transparency in governmental and quasi-governmental bodies.

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