• The Comptroller and Auditor General (CAG) of India is an authority, established by
the Constitution of India under Chapter V, who audits all
receipts and expenditure of the Government of India and the state governments,
including those of bodies and authorities substantially financed by the
• The reports of the CAG are taken into consideration by the Public Accounts
Committees, which are special committees in the Parliament of India and the state
• The CAG is also the head of the Indian Audit and Accounts Service, which has over
58,000 employees across the country.
• The current CAG of India is Shashi Kant Sharma, who was appointed on 23 May
2013. He is the 12th CAG of India.
• The Comptroller and Auditor-General of India is appointed by the President of
India following a recommendation by the Prime Minister.
ABOUT VINOD RAI
• Vinod Rai (born 23 May 1948) was Comptroller and Auditor General of India. He
assumed office on 7 January 2008 till 22 May 2013.
• He is the current chairman of UN Panel of External Auditors.
• He holds a Masters Degree in Economics from the University of Delhi, and Masters
in Public Administration from Harvard University.
• He is widely considered as symbol of the anti-corruption movement and is
credited with having turned the office of CAG into a powerful force for
accountability and transparency in contemporary India.
• Forbes described Rai as being among that rare breed of civil servants who know
how to get work done in the government.
• He has consistently hit the headlines for his unforgiving audits, ranging from the
scathing report on the shoddy preparation for the Commonwealth Games to the
latest on spectrum allocations for second generation (2G) telecom services.
• Recently the CAG under Vinod Rai has constantly been in the limelight for its
reports exposing mega corruption, particularly in 2G Spectrum Scam,
Commonwealth Games scam and other scams
SOME FAMOUS CASES
• He is widely credited for the report on issue of Licenses and Allocation of 2G
Spectrum by United Progressive Alliance, UPA government which resulted in a
huge controversy in India.
• The report estimated that there was a presumptive loss of 1766.45
billion (US$28 billion).In a charge sheet filed on 2 April 2011 by the investigating
agency Central Bureau of Investigation (CBI), the agency pegged the loss
at 309845.5 million (US$5.0 billion).
• On 2 February 2012 the Supreme Court of India on a public interest litigation
(PIL) declared allotment of spectrum as "unconstitutional and arbitrary" and
quashed all the 122 licenses issued in 2008 during tenure of A. Raja (then minister
for communications & IT in UPA government) the main accused.
• The court further said that A. Raja "wanted to favor some companies at the cost of
the public exchequer" and "virtually gifted away important national asset".
• Coal allocation scam or Coalgate - scandal concerning allocation
• It is about irregularities in allocation to PSEs and private companies.
• In March 2012, (CAG) accused Government of India of allocating
coal blocks in an inefficient manner during period 2004–2009.
• Over the Summer of 2012, the opposition BJP lodged a complaint
resulting in a CBI probe into whether the allocation of the coal
blocks was in fact influenced by corruption.
• CAG's argument is that the Government had the authority to
allocate coal blocks by a process of competitive bidding.
• Both public sector enterprises (PSEs) and private firms paid less
than they might have otherwise.
• The CAG Final Report tabled in Parliament put the figure at INR1,85,591
crore (US$30 billion).
• On 27 August 2012, Indian prime minister Manmohan Singh read a
statement in Parliament rebutting the CAG's report both in its reading of
the law and the alleged cost of the government's policies.
• CAG report suggested if coal blocks have been allocated more efficiently,
resulting in more revenue to the government.
• At no point did it suggest that corruption was involved in the allocation of
• In response to a complaint by the BJP, the Central Vigilance Commission
(CVC) directed the CBI to investigate the matter.
• The Commonwealth games scam as it is known involved large scale
misappropriation of money during the preparatory phase and conduct of the
2010 Commonwealth games held in New Delhi.
• The total value of the scam is estimated to be 76,000 crore.
• The various contracts were manipulated by Kalmadi and team and allegedly
misappropriated huge amounts in the process.
• Politicians involved
1) Suresh kalmadi, the Congress party representative to 15 LokSabha from the Pune
constituency. He was the Chairman of the Organizing Committee of the Delhi
2)Sheila Dikshit, Chief minister of Delhi: Was indicted for several irregularities in the
CWG processes both by Shunglu committee and also by the CAG
• Corporations involved
HCL Info systems.
Reforms suggested by Vinod Rai
• In November 2009, the CAG requested the government to amend the 1971 Audit
Act to bring all private-public partnerships (PPPs), Panchayti Raj Institutions and
societies getting government funds within the ambit of the CAG.
• The amendment further proposes to enhance CAG’s powers to access information
under the Audit Act. In the past, almost 30% of the documents demanded by CAG
officials have been denied to them.
• The PPP model has become a favourite mode of executing big infrastructure
projects worth millions of rupees and these projects may or may not come under
the audit purview of the CAG, depending on sources of funds and the nature of
revenue sharing agreements between the government and the private entities.
• Currently, it is estimated that 65 percent of government spending does not come
under the scrutiny of the CAG.
• All the Government Spending to come under the
ambit of CAG.
• Financial viewings and sharing's of any kind of
Businesses must be made available to CAG.
• CAG must be the sole party in decisions.
• CAG reports must be used to push reforms.