CAG’s preliminary report cannot be basis for criminal proceedings’: Supreme Court

Comptroller and Auditor General of India (CAG) – Key Points  Establishment: Independent authority under Article 148 of the Indian Constitution. Primary Role: Audits all expenditures and receipts of the Central and State Governments. Audits organizations significantly funded by the government. Constitutional Provisions: Article 148: Deals with the appointment, oath, and service conditions of the CAG. Article 149: Defines the duties and powers of the CAG. Article 150: Prescribes the form of accounts of the Union and States, advised by the CAG. Article 151: Requires CAG’s reports on Union accounts to be presented to Parliament. Article 279: CAG certifies the calculation of “net proceeds” of taxes. Appointment and Tenure: Appointed by the President of India. Can be removed similarly to a Supreme Court Judge. Holds office for 6 years or until 65 years of age, whichever is earlier. Ineligible for any office under Central or State Governments after retirement.

Functions: Audits expenditure from the Consolidated Fund of India and States, Contingency Fund, and Public Accounts. Audits accounts of departments and bodies significantly funded by the government. Conducts audits for government companies, corporations, and other authorities when required. Advises on the form of accounts for the Centre and States. Reports: Submits audit reports to the President for Parliament, including: Audit report on appropriation accounts. Audit report on finance accounts. Audit report on public undertakings. Submits state audit reports to the Governor for the state legislature. Reports are reviewed by the Public Accounts Committees of Parliament and State Legislatures. Responsibilities: Ensures government spending aligns with parliamentary sanctions. Oversees Indian Audit and Accounts Service (IA&AS). Limitations: Limited role in auditing public corporations and government companies. Some entities are audited by private auditors with a supplementary audit by the CAG if needed.