K SATYANARAYANAN Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners have preferred this writ petition under Article 226 of the Constitution of India for enforcement of due financial control and scrutiny by Comptroller and Audtior General of India over the transactions of the money in the custody of or in the control of the Reserve Bank of India and other public sector banks and financial institutions. The petitioners seek for a direction that the accounts of respondent No. 2 and 3 and all other publie sector banking and public financial institutions be brought on the regulation and compulsory audit by the Comptroller and Auditor. General of India as a matter of constitutional obligation. The petitioner also, in the alternative seek for a direction to the Ministry of Finance and the Comptroller and Auditor General of India to invoke the procedure of Section 20(ii) of the Comptroller and Auditor General (duties, powers and conditions of services) Act, 1971, to bring under the financial and auditing scrutiny of the Parliament through the Comptroller and Auditor General of India, the audit of the accounts by the Reserve Bank of India, the State Bank of India and all other public sector banks and linancial institutions.

(2.) The grievances of the petitioners, as reflected from the contents of the writ petition, appear to be that since the nominal custody of the consolidated fund of India is with the authorities named in Article 283 of the Constitution of India, the physical custody of this fund is with or under the control of the Reserve Bank of India, therefore, audit of these accounts is a constitutional necessity. According to the petitioners the same reasoning applies also mutatis mutandis to the State Bank of India and other nationalised banks, which hold public funds and resources, therefore, are liable to full financial public accounting and constitutional scrutiny.

(3.) Mr. Anil Nauriya, counsel appearing for the petitioner submitted before us that he audit of the Reserve Bank of India, the State Bank of India and. the public sector banks should be compulsarily and regularly conducted by the Comptroller and Auditor General; but contrary to the basic structure of the Constitution and the powers and functions of the Parliament such audit is not being conducted by the Comptroller and Auditor General under the existing laws unless the Central Government so desires.