CAG Likely to Table Demonetisation Report in Budget Session After Ex-bureaucrats Allege 'Deliberate Delay'

Days after 60 retired bureaucrats wrote to the Comptroller and Auditor General (CAG) over the delay in its report on demonetisation, the central auditor has decided to table it in the Budget session.

The CAG had on May 17, 2017 called a meeting to discuss audit issues arising from the demonetisation exercise.

Various offices of the government and the CAG were asked to submit views latest by August 10, 2018. The CAG had earlier sought comments on expenditure made by the government to provide relief during demonetisation.

CAG audits all receipts and expenditure of the central and the state governments, including those of bodies and authorities substantially financed by the government. In relation to the same, CAG sought an impact on suspicious banking transactions post demonetisation, voluntary income disclosure scheme (VDIS) 2016 and Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS) 2016.

The report will also take into account printing of new currency notes to review the extent of additional expenditure on account of cost of printing, as well as efficiency of the printing exercise. Along with this, additional expenses incurred by commercial banks with respect to expenses incurred on return of old currency, distribution of new currency, overtime payments to staff, recalibration of ATMs among others.

“It appears that an amount of Rs 351 crore may have been incurred or borne by public sector oil companies on account of discounts extended to customers,” informed a source.

The CAG is currently understood to be compiling comments on these aspects collected by its various offices.

Meanwhile, the letter by ex-bureaucrats said the CAG's audit reports on the 2G, Coal, Adarsh, Commonwealth Games scams had influenced public perception of the then UPA government's actions and had invited appreciation from various quarters.

"But an impression is gaining ground that the CAG is deliberately delaying its audit reports on demonetisation and the Rafale deal till after the May 2019 elections so as not to embarrass the present government. The CAG's failure to present the audit reports on demonetisation and the Rafale deal in time may be seen as a partisan action and may create a crisis of credibility for this important institution," they said.

In the past, the former bureaucrats had attacked the government over rising intolerance in the country and the Kathua gang rape case.