DO YOU THINK, CAG AUDIT OF DISCOMs IS POSSIBLE ?

( By B S Vohra ) The Audited Balance Sheet of BYPL & BRPL clearly mention that they have 49% share capital i.e. equal to the share held by Delhi Govt. Hence they must be under the scanner of CAG Audit as well RTI. But because of the clauses mentioned below, they are still treated as the actual holders of 51% share capital & therefore out of the range of CAG & RTI. Don’t you think that DELHI GOVT. must change these clauses immediately. Plz go through the details as below : 

13.5 : BSES shall not be entitled to assign the rights, benefits and/or obligations of this Agreement to any other person. Provided that BSES may after prior information to the Holding Company transfer the Shares in excess of 26 per cent of the total equity share capital of the COMPANY (as existing on the date of this shareholders Agreement) in the name of any of the group companies of which BSES is a part or any public financial institution as recognized under section 4-A of the Indian Companies Act, any National/Scheduled Banks or any foreign financial institutions approved by the Government of India. Further to bring about improvements in the distribution system of the 

COMPANY, BSES can, after prior information to the Holding Company, assign a maximum of 5 percent of the total equity share capital of the COMPANY in favour of any other company which has relevant experience in the electricity sector. Provided that BSES shall procure an undertaking from the other company that it will act along with BSES as a group shareholder. However, BSES shall hold not less than 26 percent of the total equity share capital of the COMPANY in its name. Notwithstanding such transfer of shares, BSES shall continue to be responsible for due fulfillment of all the obligations of BSES as specified in this Agreement as if the shares in COMPANY other than shares held by Holding Company or its successor entity or entities, is entirely held by BSES.

Provided however that there shall be no restriction on the pledge of the sharesto the banks and financial institutions to secure finances and funding for the business of the COMPANY. 

For the purposes of this Agreement two bodies corporate will be considered as a part of the same group if one body corporate is a subsidiary or holding company of another or both the bodies corporate are otherwise to the satisfaction of Holding Company established to be under a common management.

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( B S Vohra is President, EAST DELHI RWAs JOINT FRONT – Federation. He can be reached at  www.RWABhagidari.com / www.RWABhagidari.blogspot.in . Views are personal )

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