constitution of india

1. Comptroller and Auditor General of
India: a study
Introduction
In a democracy like India, accountability of the ruling class is an important aspect of polity and
governance. For ensuring the same, the Constitution of India has given the authority to institutional
frameworks such as an independent Judiciary, Vigilance bodies and a Supreme Audit Institution or
SAI. The Supreme Audit Institution is constituted by the Comptroller and Auditor General of India
(CAG) and the Indian Audit and Accounts Department (IAAD) which functions under his charge. The
office of CAG has been mandated by the Indian Constitution to be the auditors of the nation and, thus,
an agent for maintaining answerability.
Comptroller and Auditor General of India
Described as the “most important officer in the Constitution of India” by Dr Bhimrao Ambedkar, the
Comptroller and Auditor General of India (CAG) is an independent authority established under Article
148 of the Indian Constitution. CAG of India or the “Guardian of the Public Purse” is essentially vested
with the responsibility of inspecting and auditing all the expenditure and receipts of both the Central
and the State Governments as well as of those organizations or bodies which are significantly funded
by the government.
History of CAG in India
Pre-Independence Era (Before 1947)
The modern-day role of the Comptroller and Auditor General of India has developed through the
practice and traditions that were followed during colonial British India. Sir Edward Drummond was
appointed as the first Auditor General of India in November 1860 and his authority derived from
the Government of India Act, 1858. After a few more years, the Montford Reforms of 1919 made the
office of CAG independent from the sovereign. The powers of CAG were reinforced by the Government
of India Act, 1935 by provisioning for Provincial Auditor-Generals in the federal setup of British
India. The Government of India (Audit and Accounts) Order, 1936 laid down the conditions of service
of the Auditor General, and also defined his duties and powers concerning audits and reports.

2. Post-Independence Era (After 1947)
This setup remained unchanged till the time of independence and the establishment of constitutional
democracy in the country after which the Comptroller and Auditor General got constitutionalised. Eight
years after the conception of the Constitution, the jurisdiction of the CAG was extended to Jammu and
Kashmir in 1958. An important development in the history of the CAG regime happened in the year
1971 when the Central Government enacted the Comptroller and Auditor General (Duties, Powers and
Conditions of Service) Act, which made the office responsible for accounting and auditing of both the
Central and the State governments in pursuance of the quasi-federal nature of the country. However,
in 1976, the CAG was relieved from its accounting functions. Since the 1990s, there has been a
positive development and modernization of the office which has been kept on its toes due to the
rampant and increasing corruption scenario in the country. The CAG has audited and probed some of
the most contentious corruption scandals in the history of modern India.
Appointment and Removal of CAG
Article 148 of the Constitution deals with the appointment, removal, oath and conditions of service of
the CAG.
Appointment of Comptroller and Auditor General
 The CAG is appointed by the President of India by warrant under his hand and seal.
 The tenure of the office stands for six years or a retirement age of sixty-five years, whichever
comes first.
 The salary and other conditions of the CAG’s services shall be specified in the Second
Schedule of the Constitution until determined by the Parliament.
 His salary and rights shall not be varied to his disadvantage after his appointment to the
office.
 Moreover, the determination of the service of persons working in the IAAD (Indian Audit and
Accounts Department) as well as the administrative powers of the CAG shall be done by the
President upon consultation with the CAG and shall be prescribed in rules.
 The administrative expenses of the CAG which incorporate salaries, allowances and pensions
are charged from the Consolidated Fund of India (Article 266 of the Constitution).
Removal or Expiry of Term of the Comptroller and Auditor General
 CAG can be removed from his office by the President on the grounds of proven misbehaviour
or incapacity on an address by Parliament in the manner provided in clause (4) of Article
124 of the Indian Constitution.

3.  Article 124(4) prescribes the conditions for removal of judges of the Supreme Court; a
Presidential order passed after an address by the Parliament supported by a total membership
majority of the House and two-thirds of members present and voting.
 However, this can only be executed after sufficient proceedings of investigation and proof.
 After the retirement or resignation from his office, he is no longer eligible for any jobs or
offices under the Central or State Governments.
Other Constitutional provisions
Besides Article 148, the other articles that are associated with the authority of CAG are as follows:
 Article 149 of the Constitution lays down the duties and power of the Comptroller and Auditor
General of India.
 Article 150 says the President of India shall prescribe to the CAG the form in which the
accounts of the Union and the States shall be maintained and kept.
 Article 151 directs the Comptroller and Auditor General to submit the accounting reports of the
Union and the States to the President of India, who thereafter, shall cause them to be
presented before each House of Parliament.
 Article 279 stipulates the final authority of the CAG with regard to the ascertainment and
certification of the calculation of net proceeds as final.
 Section IV of the Third Schedule of the Constitution lays down the form of oath or affirmation
for both the Judges of the Supreme Court as well as the Comptroller and Auditor General of
India.
 The Sixth Schedule of the Constitution vests the responsibility of prescribing, with the
approval of the President, the accounts of District Council or Regional Council by the CAG.
Additionally, the auditing of their accounts are done in a manner as the CAG shall deem fit and
the reports of the audit shall be presented to the State Governors, who shall present them to
the Council.
Functions & powers
The main functions and powers of the Comptroller and Auditor General are derived from various
sources, namely the Constitution of India, The Comptroller and Auditor General (Duties, Powers and
Conditions of Service) Act of 1971, landmark judicial decisions, instructions of the Government of
India (GoI) and Regulations on Audit & Accounts of 2007. However, before discussing these functions,
it is important to understand the meaning of the term ‘audit’.

4. What is a Government Audit?
An audit is an official supervision and inspection by an independent authority of the financial accounts
and expenditure of any organization. The Government Audit is a necessary exercise for the smooth
functioning of the country’s economy as it ensures control on parliamentary finances, keeps a check
on the spendings by the executive bodies and ascertains that the expenditure and budget allocation is
within the allotted amount and parliamentary sanctions. CAG does just the same. Auditing helps in
keeping the executive within the control and scrutiny of the parliament.
The functions of the CAG are discussed below:
 The CAG is authorised to audit the accounts and expenditures from the Consolidated Fund of
India, and of States and those Union Territories which have legislative assemblies. He also
audits all expenditures from the Contingency Fund of India (Article 267) and Public Account of
India (Clause 2 of Article 266) as well as those of the states.
 All the departments of the Central, as well as State Governments, are required to get their
trading, manufacturing, profit and loss accounts, balance sheets and other ancillary accounts
audited by the CAG.
 CAG also audits the receipts and expenditure of all those bodies, organizations, institutions
and authorities which are substantially funded by the Central as well as State governments.
Even government companies, corporations or any companies (with equity participation of the
government with more than 51% of the total) get their accounts and expenditure audited by
the Comptroller and Auditor General.
 On request from the President or Governor, CAG also audits the reports of the local bodies.
 His advisory power includes advising the President with regards to the prescription of the form
in which the accounts of the Union and States should be maintained.
 The audit reports with regards to matters related to the Central Government are submitted by
the CAG to the President, who then presents them to both the Houses of Parliament.
 The audit reports with regards to matters related to the State Governments are submitted by
the CAG to the respective state Governors, who then present them to the state legislature.
 The Comptroller and Auditor General also work in the capacity of an ally, advisor and
philosopher of the Public Accounts Committee of the Parliament.
How does CAG perform these functions?
The CAG is assisted by experts of the Indian Audit and Accounts Department (IA&AD) for discharging
his functions. The officers of IA&AD are directly inducted after the qualification of the Union Public
Services Commission or UPSC Examination or by the promotion of the Group-B officers, also known as
supervisory staff. There are subordinate cadres, namely Group B or gazetted supervisory cadre of

5. Senior Audit or Accounts officers, Audit officers and Assistant Audit Officers and Group C or support
staff cadre.
Main audit reports
The audit reports of the CAG can be classified into the following four headings as discussed below:
1. CAG Local Bodies Audit Reports: The CAG Local Bodies Audit Report is prepared by the
State Accountant Generals of every state of Union of India and is sent to CAG for approval.
After this procedure is completed, the local bodies Audit Reports are subsequently categorized
into two groups, namely “Tabled in the Legislature” and “Issued to the State Government”.
2. CAG State Audit Reports: After the Accountant General audits the expenditures and
accounts of a state from the Consolidated Fund of that state, the Comptroller a nd Auditor
General then submits the findings of the report to the state legislature. The norm that is
followed is the presentation of the reports during the budget season wherein the audit findings
of the previous financial year are presented. At the state level, in a way similar to the Central
level, the audit is conducted in two streams, which are Performance Audit and Regularity
Audit. Nonetheless, in the majority of the cases, the reports of both of these audits are
presented simultaneously.
3. CAG Union Audit Reports: The Union Audit Report is prepared by Comptroller and Auditor
General of India and is primarily focused on presenting the findings of the transactional and
performance audit in the following areas:
 Civil Audit
 Audit of Autonomous Bodies
 Defence Services
 Railways
 Government Receipts
 Central Commercial
The CAG Union Audit Report incorporates the audit performed under two categories namely,
Performance Audit and Regularity (Compliance) Audit.
4. CAG Audit of Government-owned Corporations: The Comptroller and Auditor General of
India are also vested with the power of auditing the corporations owned by the government,
central or state, and also conducting the supplementary audit of those firms in which the
Union Government have more than 51% equity shares.

6. Conclusion
Despite having such importance in the parliamentary setup of a democracy like India, the institution of
the Comptroller and Auditor General of India has, time and again, suffered due to the less general
public awareness about the significance of this authority. A major fallacy that exists in modern-day
polity is the less popularity of many CAG reports and the fact that not all of these reports are
deliberated upon in the Parliament.
To expedite the efficiency of the Comptroller and Auditor General of India as a constitutional officer
charged with the responsibility of maintaining and upholding the accountability and liability of the ones
in power, it is important to popularize the audit reports released by the CAG and open up
opportunities for more general public discussion about them. Controversies like the Commonwealth
Games, 2G Spectrum and Rafale Deal brought forth the importance of CAG reports in a democracy like
India and helped ignite public discourse.

7. Public Service Commission
Articles 315 to 323 in Part XIV of the Constitution of India provides for the establishment of Public Service Commission for
the Union and a Public Service Commission for each State. Each state has its ow n Public Service Commission w ith
functions similar to the Union Public Service Commission. A difficult task in any country, it becomes all the more difficult in a
multi-lingual, multi-religious country like India w hich has a number of minority groups and backw ard classes and w here the
state is the most significant employer and government service has a prestige of its ow n. The State Public Service
Commissions w ere constituted under the provisions of the constitution of India. Union Public Service Commission is the
India’s central agency. The agency’s charter w as granted by the constitution of India. State Public service
Commission is also a constitutional body.
Articles Relating To Public Service Commission:
Article 315 - Public service commissions for the Union and for the States.
Article 316 - Appointment and term of office of members.
Article 317 - Removal and suspension of a member of a Public Service Commission.
Article 318 - Pow er to make regulations as to conditions of service of members and staff of the Commission.
Article 319 - Prohibition as to the holding of offices by members of Commission on ceasing to be such members.
Article 320 - Functions of Public Service Commission.
Article 321 - Pow er to extend functions of Public Service Commission.
Article 322 - Expenses of Public Service Commission.
Article 323 - Reports of Public Service Commission.
Union Public Service Commission
(A) Composition:
The U.P.S.C. consists of a Chairman and a number of members w ho are appointed by the President w ho, of course, acts in
this matter, on the advice of the concerned Ministers [Arts. 315(1) and 316(1)].
The President may appoint an acting Chairman of the Commission if the office of the Chairman falls vacant, or if the
Chairman is unable to discharge his functions due to absence or some other reason. The acting Chairman functions till the
Chairman is able to resume his duties, or the person appointed as Chairman enters on the duties of the office [Art. 316(1-
A)].
A member of the Commission is to hold office for six years from the date he takes charge of his office, or until he attains the
age of sixty-five years, w hichever is earlier [Art. 316(2). A member may, how ever, resign from his office by w riting to the
President [Art. 316(2) (a)].
State of Mysore v. R.V.Bidap, AIR 1973 SC 2555: (1974) 3 SCC 337.
I this case, the Supreme Court held that a member, w hen appointed as Chairman in the middle of his term, starts a new six
year term subject to other provisions of the Constitution.
(B) Removal Of A Member:
The Chairman of the Public Service Commission is expected to show absolute integrity and impartiality in exercising the
pow ers and duties as Chairman. His actions shall be transparent and he shall discharge his functions w ith utmost sincerity
and integrity. If there is any failure on his part, or he commits any act w hich is not befitting the honor and prestige as a
Chairman of the Public Service Commission, it w ould amount to misbehavior as contemplated under the constitution. If it is
proved that he has show n any favor to the candidate during the selection process that w ould certainly be an act of
misbehavior.
In R/O Ram Ashray Yadav, Chairman, State of Bihar, AIR 2000 SC 1448 at 1456: (2000) 4 SCC 309.
In this reference, the court concluded that no charge of misbehavior w as established against Dr. Yadav, although, at times,
he “did not exhibit exemplary behavior or conduct, expected of him”. There w ere ‘’lapses” on his part but
not “misbehavior― w ithin the meaning of Art.317 of the Constitution inviting action of his removal from office under

8. Art.317(1).
(C) Other Provisions:
A person w ho holds office as a member of the Commission cannot be re-appointed to that office on the expiry of his term of
office [Art.316(3)], nor is he eligible for any other employment under the Central or the State Government [Art. 319(c)]. He
can, how ever, be appointed as the Chairman of the Union Public Service Commission, or a State Public Service
Commission [Art.319(c)].
The expenses of the UPSC, including any salaries, allow ances and Pensions payable to or in respect of the members of the
staff of the commission, are charged on the Consolidated Fund of India [Art.322]. This provision frees the Commission from
parliamentary pressures.
(D) Functions Of The Commission:
It is the duty of the Union Public Service Commission to conduct examinations for appointment to the services of the Union
[Art.320 (1)]. This does not mean that the examination should alw ays be competitive and not selective. The object of holding
the examination is to test the capacity of the candidates and just to have an idea w hether a particular candidate is fit for the
proposed appointment or not. In addition to the results of the examination, other considerations may also be kept in view in
making appointments, e .g. the viva voce test. PSCs must scrupulously follow the statutory rules during recruitment and in
making appointment.
H.S.Bedi v. Patiala, AIR 1953 Pepsu 196.
In this case, the Supreme Court held that the provision is directory and not mandatory and any appointment by the
Government w ithout consulting the Commission w ould not be invalid.
Kesava v. State of Mysore, AIR 1956 Mys. 20.
The Mysore High Court has held that since the Commission is an advisory or a consultative body to the Government, and
also because under Art.323 the Government has to explain the reasons for non- acceptance of the Commission’s
advice, it is not open to the Commission to w ithhold any information w anted by the Government.
(E) Staff Of The Supreme Court
The members of the staff of the Supreme Court do not fall w ithin the purview of Art. 320(3) (c). The administrative control in
respect of the staff of the Supreme Court is vested in the Chief Justice w ho has the pow er to appoint, remove, and make
rules for their conditions of service. While the constitutional safeguards under Art.311 are available to every person in the
civil service including persons employed in the Supreme Court, the safeguard in Art. 320(3) (c) is not available to the staff of
the Supreme Court, otherw ise it w ould be contrary to the implications of Art.146.
Jatinder Kumar v. State of Punjab, (1985) 1 SCC 122.
It has been held by the Supreme Court that the w ords “shall be consulted’’ in clause (3) of Article 320 are not to
be construed as mandatory and accordingly in the absence of consultation the action of the Government under any of the
sub-clauses of clause(3) shall not be null and void.
State Public Service Commission
(A) Composition:
The Constitution establishes a Public Service Commission in each State [Art. 315(1)]. It is possible for tw o or more States to
have a Joint Public Service Commission [Art.315 (2)]. The basic policy of the Constitution is that each State should have its
ow n Public Service Commission, but if for administrative or financial reasons it is not possible for each State to have a
Commission of its ow n, tw o or more States may have a Joint Public Service Commission. The composition of the State
Commissions is governed by the same constitutional provisions as apply to the Union Commission. Thus, a State
Commission consists of a Chairman and several members w ho are appointed by the Governor [Art 316(1)]. In case of a
Joint Commission, the President makes these appointments [Art.316 (1)]. Like the U.P.S.C., as nearly as may be, one half

9. of the members of a State Commission should be persons w ho have held a government office for at least ten years at the
date of their appointment to the Commission [proviso to Art.316(1)].
All provisions regarding the tenure of a member of the Union Commission apply mutatis mutandis to a member of a
State Commission except with the following differences:
1. The age of retirement of a member of a State Commission is 62 years instead of 65 years as in the case of a member of
the U.P.S.C.
2. To resign, a member of a State Commission w rites to the Governor and a member of a Joint Commission to the President
[Arts. 316 and 317].
3. The expenses of the State Commission are charged on the Consolidated Fund of the State [Art.322]. The Governor
makes provisions w ith respect to the number of the Commission’s Staff and their conditions of service.
4. Under Art.317 (1), the President makes a reference to the Supreme Court, the question of misbehavior committed by the
Chairman or a member of the State Public Service Commission for inquiry and report. If the court reports that he should be
removed from office on any such ground, then the President shall remove him.
Hargovind Pant v. Raghukual Tilak
In this case, it has been ruled by the Supreme Court that a member of a State Public Service Commission can be appointed
as the Governor of a State. The main reason for this ruling being that the office of the Governor, is a high constitutional
office and cannot be said to be under the Government of India.
(B) Functions Of The State Commission
A State Public Service Commission discharges all those functions in respect of the State Services as does the Union
Commission in relation to the Union Services. The protection of Art. 320 (3) (c) does not apply to the staff of the High Court
and, therefore, the Chief Justice need not consult the State Public Service Commission w hen he dismisses a High Court
employee. The State Legislature may impose additional functions on the State Commission regarding the State Services,
local authority, public institutions or any other corporate authority constituted by law [Art. 321].
The State Commission is to be consulted by the Governor w hile framing rules for appointment to judicial service other than
the posts of District Judges [Art. 234].
The State Commission is to present to the Governor an annual report of the w orkdone by it. The report and the
Governor’s memorandum explaining as respects the cases w here the Commission’s advice w as not accepted and
the reasons for such non-acceptance, are to be laid before the State Legislature [Art. 323(2)]. A Joint Commission presents
a similar report to each of the concerned State Governors and each Governor then takes the action as detailed above
[Art.323(2)].
R. Hariharan v. K. Balachandran Nair, AIR 2000 SC 2933: (2000) 7 SCC 399.
In this case, a statutory provision requiring the Electricity Board to consult the State Public Service Commission in the matter
of appointment of assistant engineers has been held to be mandatory.
Bihar Public Service Commission v. S.J. Thakur, AIR 1994 SC 2466: 1994 Supp SCC 220.
The Supreme Court has ruled that a member of the Commission could not question the validity or correctness of the
functions performed or duties discharged by the Public Service Commission as a body. A member is regarded as a party to
the function discharged or duty performed by the Commission, even though the member concerned might have been a
dissenting member, or a member in a minority, or a member w ho abstained from participation in the function performed or
duty discharged.

10. Conclusion
So, it is clear that the Public Service Commission is a constitutional and independent authority. It plays a pivotal role in the
selection and appointment of persons to public services. The Commission has to perform its functions, and duties in an
independent and objective manner uninfluenced by the dictates of any other authority. The Public Service Commission is
expected to be fair and impartial and to function free from any influence from any quarter.
Amendment of the Constitution
Amendment of the Constitution refers to the formal change in the text of the written
constitution of a nation or state. The Amendment of the Constitution is highly required in
order to modify and guide the constitution to reflect the reality of life. There are two types
of Amendments and various methods for amending the constitution.
Amendment of the Constitution
Amendment of the constitution implies changing certain provisions or updating few external
features to meet the requirement of the day. For the Constitution to reflect the reality and
necessity of the day, provision of constitutional amendment is necessary.
Requirement of the Constitutional Amendment
The necessity for the Amendment of the Constitution can be emphasized as follows:
• If there had been no provision of the amendment, the people and the leaders would have
adhered to some extra constitutional mean like revolution, violence and so on there by diluting
the very constitution perse.
• Provisions for amendment of the constitution is made with a view to overcome the difficulties
which may encounter in future in the working of the constitution.
• It is also necessary in order to fix loop holes at the time of constitution enactment
• Ideals, priorities and vision of the people vary greatly generation to generation. In order to
incorporate these, amendment is desirable.
Procedures for Amending the Constitution
Constitution can be amended by various methods namely, simple majority, special majority, and
ratification by at least half the states. Constitutional amendment under article 368 is considered
as the core amendment procedure in the Indian constitution, whose procedure can be explained
as follows-
• It can be laid in any house of the parliament
• It cannot be introduced in state legislature
• The bill can be introduced either by a minister or a private member

11. • The permission of president is not required to introduce the bill in either house of the
parliament
• The bill must be passed by each house separately
• It should be passed by special majority (2/3rd of members present and voting and not less than
50% of total strength)
• The ratification by at least half of the state is imperative in case of amendment of any federal
feature of the Indian constitution
• After all the above steps, the bill is presented before president where he has no option but to
sign. However, the time period has not been set for the president to act on the bill
• Once the president gives his assent, the bill becomes an act
Types of Amendments
Under the ambit of article 368 of the constitution, there are two types of amendment to the
constitution of India.
1. Special Majority of Parliament only
2. Special Majority of parliament along with the ratification of half of the states by a simple
majority.
Criticisms of the Amendment of the Constitution are as follows:
1. India doesn’t have any permanent constitutional amendment body unlike many other countries
and all the effort is carried by relatively naïve and amateur parliament
2. State legislature, except having the power to initiate the establishment or abolition of
legislative council, do not have any other scope of initiating amendment procedure. This makes
the Indian constitution a monopoly of centre as well as makes it too rigid for the states.
3. The existence of two houses of the parliament makes it difficult to pass the constitutional
amendment act owing to disagreement between the two houses.
4. There is hardly any difference between normal legislative function and constitutional
amendment function.
5. There are too much of loop holes. For instance, there is a possibility of amending the
presidential impeachment process reducing 2/3rd of total strength to 2/3rd of present and voting
and hence in case the ruling party if unable to muster 2/3rd majority of total strength it can
always devise such a technique to suit his way.
6. There is no time frame for state legislature to ratify
7. There is no time frame for the president to give his assent

12. Describing the constitutional amendment procedure of the Indian constitution, K.G.
Balakrishnan (former CJI) has rightly said that amending the Constitution strikes a good balance
between flexibility and rigidity. Moreover, Granville Austin, a renowned scholar of the Indian
Constitution said, “The amending process has proved itself as one of the most ably conceived
aspects of the constitution. Although it appears complicated, it is merely diverse.”