Consider the following statements regarding the appointment and selection process of the Comptroller and Auditor General of India (CAG):

Statement I: Article 148 of the Constitution states that there shall be a Comptroller and Auditor General of India who shall be appointed by the President by warrant under his hand and seal.

Statement II: The Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971 provides for a selection committee comprising the Prime Minister, the Leader of the Opposition, and the Chief Justice of India to appoint the CAG.

Which one of the following is correct in respect of the above statements?

The correct answer is option 3.

In News

• The Supreme Court has agreed to examine a petition challenging the exclusive power of the Centre, through the President, to appoint the Comptroller and Auditor General of India (CAG). The petition advocates for a non-partisan selection committee to ensure greater independence of the CAG.

Key Points

• Article 148 of the Indian Constitution establishes that the CAG shall be appointed by the President by warrant under his hand and seal. Hence, Statement I is correct.
• The Comptroller and Auditor-General’s (Duties, Powers, and Conditions of Service) Act, 1971 does not provide for a selection committee involving the Prime Minister, Leader of Opposition, and Chief Justice of India. Instead, the appointment is solely at the discretion of the President, acting on the advice of the Executive. Hence, Statement II is incorrect.
• The CAG is equated with a Supreme Court judge in terms of removal procedures, meaning he/she can be removed only through impeachment by Parliament.
• The petition before the Supreme Court argues that the Centre’s absolute control over the CAG’s appointment threatens its independence as a watchdog of government finances.

Additional Information

• Role & Powers of the CAG:
  • Audits Union and State government accounts, including Panchayati Raj institutions.
  • Reports directly to the President and Governors, ensuring financial accountability.
  • Protected by the Consolidated Fund of India to ensure financial autonomy.
• Concerns Raised in the Petition:
  • The CAG’s independence is at risk due to Executive dominance in appointments.
  • Recent deviations in CAG’s reports, such as delayed audits in Maharashtra, have raised concerns about possible government influence.
  • The petition suggests reforming the selection process to include a multi-member selection committee, similar to other constitutional bodies like the Central Vigilance Commission (CVC) and Chief Election Commissioner (CEC).