Comptroller and Auditor General of India (CAG)-

• The Comptroller and Auditor General of India is the supreme audit institution of India constituted under Article 148.

Appointment and Term-

Appointment -

• She/he is appointed by the President by warrant under his hand and seal.

• The President administer the oath to CAG.

Term-

• He holds office for a period of six years or upto the age of 65 years, whichever is earlier.

Removal-

• He can resign any time from his office by addressing the resignation letter to the president.

• He can also be removed by the president on same grounds and in the same manner as a judge of the Supreme Court.

Let’s see the procedure of removal of Judge of Supreme Court

• The procedure for removal of judges is elaborated in the Judges Inquiry Act, 1968.

Procedure-

• An impeachment motion may originate in either House of Parliament.

To initiate proceedings:

(i) At least 100 members of Lok Sabha may give a signed notice to the Speaker, or

(ii) at least 50 members of Rajya Sabha may give a signed notice to the Chairman.

The Speaker or Chairman may consult individuals and examine relevant material related to the notice and he or she may decide to either admit the motion or refuse to admit it.

If Motion is admitted-

• The Speaker or Chairman (who receives it) will constitute a three-member committee to investigate the complaint.

The Committee-

Committee will comprise:

(i) A Supreme Court judge;

(ii) Chief Justice of a High Court; and

(iii) A distinguished jurist.

• The committee will frame charges based on which the investigation will be conducted. 

• A copy of the charges will be forwarded to the judge who can present a written defence.

• After concluding its investigation, the Committee will submit its report to the Speaker or Chairman, who will then lay the report before the relevant House of Parliament.

• If the report records a finding of misbehavior or incapacity, the motion for removal will be taken up for consideration and debated.

The Motion for Removal-

The motion for removal is required to be adopted by each House of Parliament by:

(i) a majority of the total membership of that House;

(ii) a majority of at least two-thirds of the members of that House present and voting. If the motion is adopted by this majority, the motion will be sent to the other House for adoption.

Once the motion is adopted in both Houses, it is sent to the President, who will issue an order for the removal of the judge

Salary and other conditions-

 The salary and other conditions of service of the Comptroller and Auditor General are mentioned under Article 148(3) and are as follows-

• The salary and other conditions of service of the Comptroller and Auditor General shall be such as may be determined by Parliament by law and, until they are so determined, shall be as specified in the Second Schedule.

• Provided that neither the salary of a Comptroller and Auditor General nor his rights in respect of leave of absence, pension or age of retirement shall be varied to his disadvantage after his appointment.

Reappointment-

• The Comptroller and Auditor General is not eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold his office.

Independence of CAG-

• The Comptroller and Auditor General is not eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold his office.

• His salary and other service conditions are determined by the Parliament.

• Neither his salary nor his rights in respect of leave of absence, pension or age of retirement can be altered to his disadvantage after his appointment.

• Further, no minister can represent the CAG in Parliament and no minister can be called upon to take any responsibility for any actions done by him.

• The Administrative expenses of the office of the Comptroller and Auditor General, including all salaries, allowances and pensions payable to or in respect of pensions serving in that office, shall be charged upon the Consolidated Fund of India.

• He can only be removed from his office in accordance with the procedure mentioned in the Constitution. Thus, he does not hold his office till the pleasure of the president, though he is appointed by him.

Duties and powers of the Comptroller and Auditor General –

• Duties and powers of CAG are mentioned under Article 149 but the full detail of duty and powers are mentioned in e CAG‘s (Duties, Powers and Conditions of Service) act, 1971.

It is discussed as below-

• To provides the necessary information to the Union and States in the preparation of their Budgets means annual Financial Statement.

• Preparation and submission of Finance Accounts and Appropriation Accounts to the President/Governor/Administrator of Union Territory as the case may be.

• To audit all expenditure from the Consolidated Fund of India and of each State and of each Union territory having a Legislative Assembly and to ascertain whether the moneys shown in the accounts as having been disbursed were legally available for and applicable to the service or purpose to which they have been applied or charged and whether the expenditure conforms to the authority which governs it.

• To audit all transactions of the Union and of the States relating to Contingency Funds and Public Accounts.

• To audit all trading, manufacturing, profit and loss accounts and balance-sheets and other subsidiary accounts kept in any department of the Union or of a State; and in each case to report on the expenditure, transactions or accounts so audited by him.

The Comptroller and Auditor-General shall in connection with the performance of his duties under this Act, have authority-

• To inspect any office of accounts under the control of the union or of a State, including treasuries, and such offices responsible for the keeping of initial or subsidiary accounts, as submit accounts to him.

• To require that any accounts, books, papers and other documents which deal with or form the basis of or are otherwise relevant to the transactions to which his duties in respect of audit extend, shall be sent to such place as he may appoint for his inspection.

• To put such questions or make such observations as he may consider necessary, to the person in charge of the office and to call for such information as he may require for the preparation of any account or report which it is his duty to prepare.

Audit of Government companies and corporations-

Companies-

• The role of the CAG in the auditing of Government companies is also limited. They are audited by private auditors who are appointed by the Government on the advice of the CAG.

Corporations-

• Some corporations are audited totally and directly by the CAG, for example, Damodar Valley Corporation, Oil and Natural Gas Commission, Air India, Indian Airlines Corporation, and others.

• Some other corporations are audited by private professional auditors who are appointed by the Central Government in consultation with the CAG. If necessary, the CAG can conduct supplementary audit.

Example-

• Central Warehousing Corporation.

Some other corporations are totally subjected to private audit.

Examples -

• Reserve Bank of India, State Bank of India, Life Insurance Corporation of India, Food Corporation of India etc.

The reports of the Comptroller and Auditor-General, in relation to audit of accounts of a Government company or a corporation are submitted to the Government or Governments concerned.

Some Facts about CAG-

• The CAG is an agent of the Parliament and conducts audit of expenditure on behalf of the Parliament Therefore, he is responsible only to the Parliament.

• The CAG has more freedom with regard to audit of expenditure than with regard to audit of receipts, stores and stock.

• In practice, the CAG is fulfilling the role of an Auditor-General only and not that of a Comptroller which means that the CAG has no control over the issuing of money and have control over only the expenditure part.

Limitations-

• She/he has less control over issuing of money.

• Indirect accountability to the Finance Ministry of the Union and the Finance Department of the State Government.

• The CAG cannot call for particulars of expenditure incurred by the secret service agencies.

Who was the 1^st Comptroller and Auditor-General (CAG) of British India?

• Edmund Drummond (1860 -62) was the 1^st Comptroller and Auditor-General (CAG) of British India.

Who was the 1^st Comptroller and Auditor-General (CAG) of Independent India?

• Narahari Rao(1950-54) was the 1^st Comptroller and Auditor-General (CAG) of India

Who is the 15^th Comptroller and Auditor-General (CAG) of India?

• Girish Chandra Murmu(since 2020) is the 15^th Comptroller and Auditor-General (CAG) of India.