The Comptroller Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971

Summary of the Comptroller Auditor-General s (Duties, Powers and Conditions of Service) Act, 1971
Purpose
• Defines the conditions of service for the Comptroller and Auditor-General (C&AG) of India.
• Outlines the duties and powers of the C&AG, with a note on the State Government's role in rule-making.
Key Provisions
Conditions of Service
1. Tenure and Retirement: - Serves for 6 years or until 65 years of age, whichever is earlier.
2. Remuneration and Benefits: - Salary equivalent to a Supreme Court Judge.
• Pension:
• For previous government servants: Pension based on previous service with C&AG tenure counted.
• For others: ₹15,000 per annum pension.
• Eligibility for the General Provident Fund.
• Benefits (travel, residence, etc.) akin to a Supreme Court Judge.
Duties
1. Account Compilation and Submission: - Compiles Union and State accounts, unless exempted by the President/Governor.
• Submits accounts to the President, Governors, and Administrators of Union Territories.
2. Audit Responsibilities: - Audits expenditure from Consolidated Funds.
• Verifies legal expenditure and compliance.
• Audits transactions, trading accounts, and substantially financed bodies.
3. Support and Oversight: - Provides financial information and assistance to the government.
• Audits Government companies, corporations, and specified authorities.
Powers
1. Operational Authority: - Inspects accounts offices.
• Requests and examines documents.
• Interrogates personnel for audit purposes.
2. Regulatory Powers: - Delegates audit duties.
• Contributes to rule-making for audit processes, in conjunction with State Governments where applicable.
Miscellaneous
1. Legislative Impact: - Repeals the 1953 Act.
• Addresses doubts on the cessation of the 1936 Government of India Order.
2. Amendments: - Subject to amendments (e.g., 1976, 1984, 1987, 1994) that refine duties, powers, and service conditions.
Amending Acts (Implicit in Context)
• 1976, 1984, 1987, 1994 Acts: Modify the C&AG's duties, powers, and service terms to enhance audit efficacy and align with governance needs.

Legislative History: The Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971

Source: India Code and Ministry of Finance / Official Records of Parliament

Key Legislative Metadata

Legislative Stage / Attribute Official Details

Short Title The Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971

Act Number / Year Act No. 56 of 1971

Act ID (India Code) 197156

Presidential Assent / Enactment Date December 15, 1971

Official Gazette Publication December 1971

Enforcement Date January 1, 1972

Administrative Nodal Ministry Ministry of Finance

Precedent & Statutory Rationale

1. Fulfillment of Constitutional Mandate under Article 149:

o While Articles 148 to 151 of the Constitution of India established the high-office of the Comptroller and Auditor-General (CAG) as an independent guardian of the public purse, Article 149 expressly mandated that the CAG shall perform such duties and exercise such powers in relation to the accounts of the Union, States, and other bodies as may be prescribed by or under law made by Parliament.

o Prior to 1971, the office operated largely under transitional adaptations of colonial administrative orders. Parliament enacted this comprehensive legislation to formally, definitively, and statutorily crystallize the tenure, salary, rights, duties, and broad auditing powers of India's supreme audit institution.

2. Core Statutory Powers and Scope of Authority:

o Tenure and Service Conditions: Fixed the CAG's term at 6 years or until attaining the age of 65 years (whichever is earlier), guaranteeing security of tenure equivalent to a Supreme Court Judge.

o Compiling and Auditing Accounts: Outlined clear statutory parameters for auditing expenditure, transactions, and receipts payable to the Consolidated Fund of India and States, alongside overseeing government companies, corporations, and bodies substantially financed by public revenues.

o Access to Information: Empowered the CAG to inspect any office, demand records, books, papers, and documents, and frame independent auditing standards to enforce financial accountability across executive machineries.

Parliamentary Trajectory & Enactment

• Formulation: Drafted and piloted by the Ministry of Finance to operationalize full parliamentary oversight over public finances pursuant to constitutional requirements.

• Parliamentary Passage: Tabled, debated, and passed by both Houses of Parliament, receiving Presidential Assent on December 15, 1971.

• Enforcement: Enforced on January 1, 1972.