SC to Examine Petition on CAG Appointment Process, Pg10

Context:

• The Supreme Court has decided to hear a petition challenging the absolute control of the Centre over the appointment of the Comptroller and Auditor General (CAG).
• The plea argues that the CAG’s independence is at risk due to the lack of a non-partisan selection process.

Key Concerns Raised in the Petition

1. Lack of a Transparent Appointment Process

   • Currently, the CAG is appointed by the President on the advice of the government, without an independent selection committee.
   • The petition demands a non-partisan committee, including the Prime Minister, Leader of the Opposition, and Chief Justice of India, for the selection process.

2. CAG’s Role as a Constitutional Watchdog

   • The CAG is responsible for auditing the financial accountability of the Union, State governments, and Panchayati Raj institutions.
   • The petition argues that a lack of independence could weaken oversight over government spending.

3. Recent Decline in CAG's Effectiveness

   • The petition cites “deviations” in CAG’s work, including the lack of audit reports on key issues like Maharashtra’s finances.
   • Concerns over the "pause" in audits of Union government accounts were also highlighted.

4. Article 148 and Supreme Court Comparison

   • Article 148(1) of the Constitution equates the CAG’s status to that of a Supreme Court judge.
   • CAG can only be removed in the same manner as a judge, but the Constitution is silent on the exact appointment process.
   • Judicial intervention in this matter raises concerns about whether it would amount to re-writing Article 148.

Government's Stand and Judicial Response

• The SC has issued a notice to the Centre for its response.
• Justice Surya Kant remarked that constitutional institutions should be trusted, questioning the need for a legal overhaul.
• Advocate Prashant Bhushan countered that giving exclusive appointment control to the Executive weakens institutional independence.

Way Forward

• The case may lead to reforms in the CAG’s appointment process by introducing a collegium-like system for transparency and independence.
• Strengthening accountability mechanisms for CAG could enhance financial oversight and government transparency.

Mains Mock Question:

"Discuss the role of CAG in ensuring financial accountability. Should its appointment process be reformed for greater independence?"