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Section 104: Accounts and audit of State Commission

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 2003
Section 103 All 185 Sections of Electricity Act Section 105

Legal Commentary & Landmark Judgments: Section 104

Section 104 of the Act mandates the annual audit of the State Commission's accounts by the Comptroller and Auditor General of India, ensuring public fiscal accountability to the State Legislature.

  • Mandatory CAG Financial Audit of SERCs: Directs that the accounts of the State Commission shall be maintained in prescribed form and audited annually by the CAG.
  • Unrestricted CAG Verification Powers: Confers full access rights on the CAG to examine all accounts, contracts, and financial disbursements of the State Commission.
  • Submission to State Government & Assembly: Requires the audited accounts together with the CAG report to be forwarded annually to the State Government for tabling before the State Legislature.
Key Landmark Precedents:
  • State of Gujarat v. Utility Users' Welfare Association (2018) 6 SCC 21: Supreme Court affirmed that CAG audit under Section 104 provides a vital constitutional check ensuring fiscal integrity within State Commissions.
  • Centre for Public Interest Litigation v. Union of India (2012) 3 SCC 1: Affirmed the sovereign role of the CAG in auditing state regulatory bodies.
  • West Bengal Electricity Regulatory Commission v. CESC Ltd. (2002) 8 SCC 715: Affirmed that annual auditing reinforces public credibility in regulatory administration.
Courtroom Practice & Strategic Litigation Guidance:

Parties litigating regulatory fee disputes can review the published CAG state audit report under Section 104 to challenge excessive petition fee hikes that generate surplus revenues unconnected to regulatory costs.

Section 103 All 185 Sections of Electricity Act Section 105