# Delhi Government Puts Power Distribution Firms Under Financial Scanner Over Rs 38,000 Crore in Unpaid Dues

> The Delhi government has for the first time ordered a CAG audit of power distribution companies to probe Rs 38,000 crore in outstanding dues, with a three month deadline to complete it.

**Type:** article · **Category:** Business · **Published:** 2026-07-02 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/munaphe-men-bijali-knpaniyan-phira-bhi-38-hajara-karora-ka-bakaya-kaise-delhi-sarakara-ne-bithai-cag-jancha-4056 · **Language:** English
**Tags:** Delhi power companies, CAG audit, Rs 38000 crore dues, Rekha Gupta government, Arvind Kejriwal, Delhi power department

The Delhi government has ordered a CAG audit of the city's power distribution companies, giving them a three month deadline to complete the process. The demand for such an audit had been raised for years, but the power companies had consistently resisted it. After the matter reached the courts and the companies failed to get any relief there, the Delhi government went ahead and issued a direct order for the audit.

## How did profitable companies rack up dues of Rs 38,000 crore?
The core question the Delhi government wants answered is how the power companies ended up owing Rs 38,000 crore when they are not running in losses. In fact, these companies are said to be profitable, and a share of that profit is already being passed on to the Delhi government. That raises an obvious question: if the companies are earning and handing over their share of profits to the government, where exactly did such a massive pending amount of Rs 38,000 crore come from. The government now wants to get to the bottom of this contradiction.

## First ever CAG audit of power discoms in Delhi
This will mark the first time that a CAG audit of power distribution companies is being carried out in Delhi. The government expects the exercise to reveal exactly what lies behind the Rs 38,000 crore in outstanding dues. Its position is straightforward, if the companies are profitable and are already sharing part of that profit with the government, there ought to be a clear explanation for why such a large sum remains unpaid.

## Kejriwal raised the issue but the audit stalled until Rekha Gupta's government
Delhi's former CM Arvind Kejriwal had earlier spoken about getting a CAG audit done on the power companies, but it never materialised during his tenure. It is now under the Rekha Gupta government that the audit is finally going ahead. According to the Delhi government, the objective behind the audit is to protect consumer interests and bring transparency to the power sector. If the investigation uncovers any financial irregularities, action will be taken against those responsible.

## What the audit will examine
As per the Delhi government, the CAG audit will involve a detailed examination of the power companies' financial records, including their revenue, expenditure, subsidies, the cost of purchasing electricity, and all documents linked to the outstanding dues. The aim is to establish the real reason behind the pending amount and to check whether there has been any lapse in financial management or in how records were maintained. Only once the audit is complete will it become clear whether the Rs 38,000 crore in dues is genuine or whether it conceals some irregularity.

## What this means for you
- **Across India:** This CAG audit aimed at fixing accountability of Delhi's power companies could push demand for similar scrutiny of power distribution firms in other states too.
- **In Delhi:** If the audit uncovers irregularities, it could directly affect electricity tariffs, subsidies and future power policy for consumers in Delhi.

## Questions & Answers

### 1. Why did the Delhi government order a CAG audit of power companies?
Because the power companies owe Rs 38,000 crore in dues despite being described as profitable, so the government wants to know the real reason behind the amount.

### 2. How much time has been given to complete the audit?
As per the Delhi government's order, the audit has to be completed within 3 months.

### 3. Has a CAG audit of power companies happened in Delhi before?
No, this is the first time a CAG audit of power distribution companies is being conducted in Delhi.

### 4. Was there a demand for this audit earlier too?
Yes, the demand had been raised for years, but the power companies were not ready for it and got no relief from the courts either.

### 5. What had former CM Arvind Kejriwal said about this?
Arvind Kejriwal had also spoken about a CAG audit, but it could not be carried out during his tenure.

### 6. What will the CAG audit examine?
The audit will examine the power companies' financial records, revenue, expenditure, subsidies, cost of purchasing electricity and documents related to the outstanding dues.

### 7. What happens if irregularities are found in the investigation?
According to the Delhi government, action will be taken if any financial irregularity is found.

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