THE COMPTROLLER AND AUDITOR-GENERAL’S (DUTIES, POWERS AND 
CONDITIONS OF SERVICE) ACT, 1971 
_________ 

ARRANGEMENT OF SECTIONS 
__________ 

SECTIONS 

1. Short title. 

2. Definitions. 

CHAPTER I 

PRELIMINARY 

CHAPTER II 

SALARY AND OTHER CONDITIONS OF SERVICE OF THE COMPTROLLER AND AUDITOR-GENERAL 

3. Salary. 

4. Term of office. 

5. Leave. 

6. Pension. 

7. [Omitted.]. 

8. Right to subscribe to General Provident Fund. 

9. Other conditions of service. 

CHAPTER III 

DUTIES AND POWERS OF THE COMPTROLLER AND AUDITOR-GENERAL 

10. Comptroller and Auditor-General to compile accounts of Union and States. 

11. Comptroller and Auditor-General to prepare and submit accounts to the President, Governors of 

States and Administrators of Union territories having Legislative Assemblies. 

12.  Comptroller  and  Auditor-General  to  give  information  and  render  assistance  to  the  Union  and  

States. 

13. General provisions relating to audit. 

14.  Audit  of receipts and expenditure  of  bodies  or  authorities  substantially  financed from  Union  or 

State Revenues. 

15.  Functions  of  Comptroller  and  Auditor-General  in  the  case  of  grants  or  loans  given  to  other 

authorities or bodies. 

16. Audit of receipts of Union or of States. 

17. Audit of accounts of stores and stock. 

18. Powers of Comptroller and Auditor-General in connection with audit of accounts. 

19. Audit of Government companies and corporations. 

19A. Laying of reports in relation to accounts of Government companies and corporations. 

20. Audit of accounts of certain authorities or bodies. 

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CHAPTER IV 

MISCELLANEOUS 

SECTIONS 

21. Delegation of power of Comptroller and Auditor-General. 

22. Power to make rules. 

23. Power to make regulations. 

24. Power to dispense with detailed audit. 

25. Repeal. 

26. Removal of doubts. 

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THE COMPTROLLER AND AUDITOR-GENERAL’S (DUTIES, POWERS AND 
CONDITIONS OF SERVICE) ACT, 1971 

ACT NO. 56 OF 1971 

[15th December, 1971.] 

An Act to determine the conditions of service of the Comptroller and Auditor-General of India 
and  to  prescribe  his  duties  and  powers  and  for  matters  connected  therewith  or  incidental 
thereto. 

BE it enacted by Parliament in the Twenty-second Year of the Republic of India as follows:— 

CHAPTER I 
PRELIMINARY 

1. Short title.—This Act may be called the Comptroller and Auditor-General’s (Duties, Powers and 

Conditions of Service) Act, 1971. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  ““”accounts”,  in  relation  to  commercial  undertakings  of  a  Government,  includes  trading, 

manufacturing and profit and loss accounts and balance-sheets and other subsidiary accounts; 

(b)  “appropriation  accounts”  means  accounts  which  relate  the  expenditure  brought  to  account 
during  a  financial  year,  to  the  several  items  specified  in  the  law  made  in  accordance  with  the 
provisions of the Constitution or of the Government of Union Territories Act, 1963 (20 of 1963), for 
the  appropriation  of  moneys  out  of  the  Consolidated  Fund  of  India  or  of  a  State,  or  of  a  Union 
territory having a Legislative Assembly, as the case may be; 

(c)  “Comptroller  and  Auditor-General”  means  the  Comptroller  and  Auditor-General  of  India 

appointed under article 148 of the Constitution; 

(d) “State” means a State specified in the First Schedule to the Constitution; 

(e) “Union” includes a Union territory, whether having a Legislative Assembly or not. 

CHAPTER II 
SALARY AND OTHER CONDITIONS OF SERVICE OF THE COMPTROLLER AND AUDITOR-GENERAL 

3. Salary.—There shall be paid to the Comptroller and Auditor-General a salary which is equal to the 

salary of the Judge of the Supreme Court: 

Provided that if a person who, immediately before the date of assuming office as the Comptroller and 
Auditor-General, was in receipt of, or, being eligible so to do, had elected to draw, a pension (other than a 
disability or wound pension) in respect of any previous service under the Government of the Union or any 
of  its  predecessor  Governments,  or  under  the  Government  of  a  State  or  any  of  its  predecessor 
Governments, his salary in respect of service as Comptroller and Auditor-General shall be reduced— 

(a) by the amount of that pension; and 

(b) if he had, before assuming office, received, in lieu of a portion of the pension due to him in 
respect  of  such  previous  service,  the  commuted  value  thereof,  by  the  amount  of  that  portion of the 
pension; 1*** 

2* 

* 

* 

* 

* 

4. Term of office.—The Comptroller and Auditor-General shall hold office for a term of six years 

from the date on which he assumes such office: 

Provided  that  where  he  attains  the  age  of  sixty-five  years  before  the  expiry  of  the  said  term  of  six 

years, he shall vacate such office on the date on which he attains the said age: 

1. The word “and” omitted by Act 51 of 1994, s. 2 (w.e.f. 27-3-1990). 
2. Clause (c) omitted by s. 2, ibid. (w.e.f. 27-3-1990). 

3 

 
 
 
 
 
 
 
                                                           
Provided further that he may, at any time, by writing under his hand addressed to the President, resign 

his office. 

Explanation.—For the purpose of this section, the term of six years in respect of the Comptroller and 
Auditor-General  holding  office  immediately  before  the  commencement  of  this  Act,  shall  be  computed 
from the date on which he had assumed office. 

5. Leave.—(1) A person who, immediately before the date of assuming office as the Comptroller and 
Auditor-General,  was in  the  service  of  Government  may  be  granted  during  his  tenure  of  office  but  not 
thereafter,  leave  in  accordance  with  the  rules  for  the  time  being  applicable  to  the  Service  to  which  he 
belonged before such date and he shall be entitled to carry forward the amount of leave standing at his 
credit on such date, notwithstanding anything contained in section 6. 

(2) Any other person who is appointed as the Comptroller and Auditor-General may be granted leave 
in  accordance  with  such  rules  as  are  for  the  time  being  applicable  to  a  member  of  the  Indian 
Administrative Service. 

(3)  The  power  to  grant  or  refuse  leave  to  the  Comptroller  and  Auditor-General  and  to  revoke  or 

curtail leave granted to him, shall vest in the President. 

6. Pension.—(1) A person who, immediately before the date of assuming office as the Comptroller 
and Auditor-General, was in the service of Government shall be deemed to have retired from service on 
the  date  on  which  he  enters  upon  office  as  the  Comptroller  and  Auditor-General  but  his  service  as  the 
Comptroller and Auditor-General shall be reckoned as continuing approved service counting for pension 
in the Service to which he belonged. 

(2) Every person who enters upon office as the Comptroller and Auditor-General shall, on demitting 
the said office, be eligible to a pension of a sum of fifteen thousand rupees per annum which sum shall 
include the aggregate of all pensions payable to him and the commuted portion, if any, of his pension, and 
the pension equivalent of the retirement gratuity, if any, which may have been admissible to him under 
the rules for the time being applicable to the Service to which he belonged: 

Provided that if such a person is or becomes eligible, at any time, under the rules for the time being 
governing the Service to which he belonged, to a pension higher than the said sum of fifteen thousand 
rupees, he shall be eligible to draw, as pension, the said higher amount. 

(3)  A  person  who,  immediately  before  the  date  of  assuming  office  as  the  Comptroller  and                   

Auditor-General,  was  in  receipt  of,  or,  had  become  eligible  for  receiving,  a  pension  in  respect  of  any 
previous service under Government, shall,  on demitting office as the Comptroller and Auditor-General, 
be eligible to a pension of fifteen thousand rupees per annum which sum shall include the aggregate of all 
pensions payable to him and the commuted portion, if any, of his pension, and the pension equivalent of 
the retirement gratuity, if any, which may have been admissible to him under the rules for the time being 
applicable to the Service to which he belonged: 

Provided that if such a person is or becomes eligible, at any time, under the rules for the time being 
governing the Service to which he belonged, to a pension higher than the said sum of fifteen thousand 
rupees, he shall be eligible to draw, as pension, the said higher amount. 

(4) Any other person who is appointed as the Comptroller and Auditor-General shall, on demitting the 

said office, be eligible to a pension of fifteen thousand rupees per annum. 

(5) The person holding office immediately before the commencement of this Act as the Comptroller 
and  Auditor-General  shall  be  eligible  to  draw,  at  his  option,  pension  at  the  rate  at  which  it  would  be 
admissible to him if this Act had not come into force or at the rate specified in this section. 

(6) A person who demits office as the Comptroller and Auditor-General by resignation shall, on such 
demission, be eligible to a pension at the rate of two thousand rupees per annum for each completed year 
of his service as the Comptroller and Auditor-General: 

4 

Provided that in the case of a person referred to in sub-section (1) or sub-section (3), the aggregate 

amount  of  pension  admissible  under  this  sub-section  together  with  the  amount  of  pension  including                  
the  commuted  portion,  if  any,  of  his  pension,  and  the  pension  equivalent  of  the  retirement  gratuity,  if            
any, which may have been admissible to him under the rules for the time being applicable to the Service 
to  which  he  belonged  immediately  before  he  assumed  office  as  the  Comptroller  and  Auditor-General, 
shall  not  exceed  fifteen  thousand  rupees  per  annum  or  the  higher  pension  referred  to  in  proviso  to                 
sub-section (2) or sub-section (3), as the case may be. 

1[(6A)  Notwithstanding  anything  contained  in  the  foregoing  provisions  of  this  section,  a  person 
referred to in sub-section (1) who demits office [whether in any manner specified in sub-section (8) or by 
resignation]  as  the  Comptroller  and  Auditor-General  after  the  commencement  of  the  Comptroller  and 
Auditor-General’s (Duties, Powers and Conditions of Service) Amendment Act, 1984 (2 of 1984), shall, 
on such demission, be entitled to— 

(a) the pension to which he would have been entitled under the rules of the Service to which he 
belonged  by  reckoning  his  service  as  the  Comptroller  and  Auditor-General  as  continuing  approved 
service counting for pension in such Service; and 

(b)  a special  pension  of  seven  hundred  rupees  per  annum  in  respect  of each completed  year  of 

service as the Comptroller and Auditor-General: 

2* 

* 

* 

* 

* 

(6B) Notwithstanding anything contained in the foregoing provisions of this section, a person referred 
to  in  sub-section  (3)  who  demits  office  [whether  in  any  manner  specified  in  sub-section  (8)  or  by 
resignation]  as  the  Comptroller  and  Auditor-General  after  the  commencement  of  the  Comptroller  and 
Auditor-General’s (Duties, Powers and Conditions of Service) Amendment Act, 1984 (2 of 1984), shall, 
on such demission, be entitled to— 

(a) the pension payable to him in respect of any previous service under Government; and 

(b)  a special  pension  of  seven  hundred  rupees  per  annum  in  respect  of each completed  year  of 

service as the Comptroller and Auditor-General: 

2* 

* 

* 

* 

*] 

3[(6C) Notwithstanding anything contained in the foregoing provisions of this section, a person who 
demits office [whether in any manner specified in sub-section (8) or by resignation] as the Comptroller 
and Auditor-General after the commencement of the Comptroller and Auditor-General’s (Duties, Powers 
and Conditions of Service) Amendment Act, 1987 (50 of 1987), shall, on such demission, be entitled to— 

(a) a pension which is equal to the pension payable to a Judge of the Supreme Court,— 

(i) if such person is a person referred to in sub-section (1) or sub-section (3), in accordance 
with  the  provisions  of  Part  III  of  the  Schedule  to  the  Supreme  Court  Judges  (Conditions  of 
Service) Act, 1958 (41 of 1958)  (hereafter in this Act referred to as the Supreme Court Judges 
Act), as amended from time to time; and 

(ii) if such person is a person referred to in sub-section (4), in accordance with the provisions 

of Part I of the Schedule to the Supreme Court Judges Act, as amended from time to time; 

(b)  such  pension  (including  commutation  of  pension),  family  pension  and  gratuity  as  are 
admissible  to  a  Judge  of  Supreme  Court  under  the  Supreme  Court  Judges  Act  and  the  rules  made 
thereunder, as amended from time to time.] 
4[(6D) Notwithstanding anything contained in the forgoing provisions of this section, a person who 
demitted office [whether in any manner specified in sub-section (8) or by resignation] as the Comptroller 
and Auditor-General, at any time before the 16th day of December, 1987, shall be entitled to the pension 
specified in  sub-section (6C) on and from that date.] 

1. Ins. by Act 2 of 1984, s. 2 (w.e.f. 16-3-1984). 
2. The proviso omitted by Act 50 of 1987, s. 2 (w.e.f. 1-1-1986).  
3. Ins. by s. 2, ibid. (w.e.f. 16-12-1987).  
4. Ins. by Act 51 of 1994, s. 3 (w.e.f. 16-12-1987). 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(7)  If  a  person  who  demits  office  as  the  Comptroller  and  Auditor-General  is  not  eligible  to                       

any pension under this section but is eligible to a pension under the rules for the time being applicable to 
the Service to which he belonged immediately before be assumed office as the Comptroller and Auditor-
General, he shall, notwithstanding anything contained in this section, be eligible to draw such pension as 
is admissible to him under the said rules. 

(8)  Except  where  he  demits  office  by  resignation,  a  person  holding  office  of  the  Comptroller  and 
Auditor-General shall be deemed, for the purposes of this Act, to have demitted such office as such if, and 
only if,— 

(a) he has completed the term of office specified in section 4, or 

(b) he has attained the age of sixty-five years, or 

(c) his demission of office is medically certified to be necessitated by ill health. 

7.  [Commutation,  of  pension.]  Omitted  by  the  Comptroller  and  Auditor-General’s  (Duties,  Powers 

and Conditions of service Amendment) Act, 1987 (50 of 1987), s. 3 (w.e.f. 16-12-1987). 

8. Right to subscribe to General Provident Fund.—Every person holding office as the Comptroller 

and Auditor-General shall be entitled to subscribe to the General Provident Fund (Central Services). 

9.  Other  conditions  of  service.—1[Save  as  otherwise  provided  in  this  Act,  the  conditions  of             

service relating to travelling allowance, provision of rent-free residence and exemption from payment of 
income- tax on the value of such rent-free residence, conveyance facilities, sumptuary allowance, medical 
facilities  and  such  other  conditions  of  service  as  are  for  the  time  being  applicable  to  a  Judge  of  the 
Supreme Court under Chapter IV of the Supreme Court Judges Act, and the rules made thereunder, shall, 
so far as may be, apply to a serving or retired Comptroller and Auditor-General as the case may be:] 

Provided that nothing in this section shall have effect so as to give a person, who immediately before 
the date of assuming office as the  Comptroller and Auditor-General, was in the service of Government, 
less favourable terms in respect of any of the matters aforesaid than those to which he would be entitled 
as a member of the Service to which he belonged, his service as Comptroller and Auditor-General being 
treated for the purpose of this proviso as continuing service in the Service to which he belonged. 

CHAPTER III 
DUTIES AND POWERS OF THE COMPTROLLER AND AUDITOR-GENERAL 

10.  Comptroller  and  Auditor-General  to  compile  accounts  of  Union  and  States.—(1)  The 

Comptroller and Auditor-General shall be responsible— 

(a)  for  compiling  the  accounts  of  the  Union  and  of  each  State  from  the  initial  and  subsidiary 
accounts  rendered  to  the  audit  and  accounts  offices  under  his  control  by  treasuries,  offices  or 
departments responsible for the keeping of such accounts; and 

(b) for keeping such accounts in relation to any of the matters specified in  clause (a) as may be 

necessary: 
2[Provided that the  President  may,  after  consultation with the  Comptroller  and Auditor-General,  by 

order, relieve him from the responsibility for compiling— 

(i) the said accounts of the Union (either at once or gradually by the issue of several orders); or 

(ii) the accounts of any particular services or departments of the Union: 

Provided further that the Governor of a State may,  with the previous approval of the President and 
after consultation with the Comptroller and Auditor-General, by order, relieve him from the responsibility 
for compiling— 

(i) the said accounts of the State (either at once or gradually by the issue of several orders); or 

1. Subs. by s. 4, ibid., for certain words (w.e.f. 16-12-1987).  
2. Subs. by Act 58 of 1976, s. 2, for the first proviso (w.e.f. 1-3-1976). 

6 

                                                           
(ii) the accounts of any particular services or departments of the State:] 

1[Provided also] that the President may, after consultation with the Comptroller and Auditor-General, 
by order, relieve him from the responsibility for keeping the accounts of any particular class or character. 

(2)  Where,  under  any  arrangement,  a  person  other  than  the  Comptroller  and  Auditor-General  has, 

before the commencement of this Act, been responsible— 

(i) for compiling the accounts of any particular service or department of the Union or of a State, 

or 

(ii) for keeping the accounts of any particular class or character, 

such arrangement    shall,  notwithstanding  anything  contained in sub-section (1), continue  to  be in force 
unless, after consultation with the Comptroller and Auditor-General, it is revoked in the case referred to 
in clause (i), by an order of the President or the Governor of the State, as the case may be, and in the case 
referred to in clause (ii), by an order of the President. 

11.  Comptroller  and  Auditor-General  to  prepare  and  submit  accounts  to  the  President, 
Governors  of  States  and Administrators  of  Union territories  having  Legislative  Assemblies.—The 
Comptroller and  Auditor-General shall,  from  the accounts  compiled  by  him  or  2[by  the  Government  or 
any  other  person  responsible  in  that  behalf],  prepare  in  each  year  accounts  (including,  in  the  case  of 
accounts  compiled  by  him,  appropriation  accounts)  showing  under  the  respective  heads  the  annual 
receipts and disbursements for the purpose of the Union, of each State and of each Union territory having 
a Legislative Assembly, and shall submit those accounts to the President or the Governor of a State or 
Administrator of the Union territory having a Legislative Assembly, as the case may be, on or before such 
dates as he may, with the concurrence of the Government concerned, determine: 

3[Provided that the  President  may,  after  consultation with the  Comptroller  and Auditor-General,  by 
order, relieve him from the responsibility for the preparation and submission of the accounts relating to 
annual  receipts  and  disbursements  for  the  purpose  of  the  Union  or  of  a  Union  territory  having  a 
Legislative Assembly: 

Provided further that the Governor of a State may,  with the previous approval of the President and 
after consultation with the Comptroller and Auditor-General, by order, relieve him from the responsibility 
for the preparation and submission of the accounts relating to annual receipts and disbursements for the 
purpose of the State.] 

12.  Comptroller  and  Auditor-General  to  give  information  and  render  assistance  to  the  Union 
and  States.—The Comptroller and Auditor-General shall, in so far as the accounts, for the compilation 
or keeping of which he is responsible, enable him so to do, give to the Union Government, to the State 
Governments or to the Governments of Union territories having Legislative Assemblies, as the case may 
be, such information as they may, from time to time, require, and render such assistance in the preparation 
of their annual financial statements as they may reasonably ask for. 

13.  General  provisions  relating  to  audit.—It  shall  be  the  duty  of  the  Comptroller  and                    

Auditor-General— 

(a) to audit all expenditure from the Consolidated Fund of India and of each State and of each 
Union  territory  having  a  Legislative  Assembly  and  to  ascertain  whether  the  moneys  shown  in  the 
accounts as having been disbursed were legally available for and applicable to the service or purpose 
to which they have been applied or charged and whether the expenditure conforms to the authority 
which governs it; 

(b)  to  audit  all  transactions  of  the  Union  and  of  the  States  relating  to  Contingency  Funds  and 

Public Accounts; 

1. Subs. by Act 58 of 1976, s. 2, for “Provided further” (w.e.f. 1-3-1976). 
2. Subs. by s. 3, ibid., for “by any other person responsible in that behalf” (w.e.f. 1-3-1976). 
3. The provisos ins. by s. 3, ibid. (w.e.f. 1-3-1976).  

7 

                                                           
(c)  to  audit  all  trading,  manufacturing,  profit  and  loss  accounts  and  balance-sheets  and  other 

subsidiary accounts kept in any department of the Union or of a State; 

and in each case to report on the expenditure, transactions or accounts so audited by him. 

14.  Audit  of  receipts  and  expenditure  of    bodies  or  authorities  substantially  financed  from 
Union  or  State  Revenues.—1[(1)]  Where  any  body  or  authority  is  substantially  financed  by  grants  or 
loans from the Consolidated Fund of India or of any State or of any Union territory having a Legislative 
Assembly, the Comptroller and Auditor-General shall, subject to the provisions of any law for the time 
being in force applicable to the body or authority, as the case may be, audit all receipts and expenditure of 
that body or authority and to report on the receipts and expenditure audited by him. 

Explanation.—Where the grant or loan to a body or authority from the Consolidated Fund of India or 
of any State or of any Union territory having a Legislative Assembly in a financial year is not less than 
2[rupees twenty-five lakhs] and the amount of such grant or loan is not less than seventy-five per cent of 
the total expenditure of that body or authority, such body or authority shall be deemed, for the purposes of 
3[this sub-section] to be substantially financed by such grants or loans, as the case may be. 

4[(2)  Notwithstanding  anything  contained  in  sub-section  (1)  the  Comptroller  and  Auditor-General 
may,  with  the  previous  approval  of  the  President  or  the  Governor  of  a  State  or  the  Administrator  of  a 
Union territory having a Legislative Assembly, as the case may be, audit all receipts and expenditure of 
any body or authority where the grant or loan to such body or authority from the Consolidated Fund of 
India or of any State, or of any Union territory having a Legislative Assembly, as the case may be, in a 
financial year is not less than rupees one crore. 

(3)  Where  the  receipts  and  expenditure  of  any  body  or  authority  are,  by  virtue  of  the  fulfilment                         

of  the  conditions  specified  in  sub-section  (1)  or  sub-section  (2),  audited  by  the  Comptroller  and             
Auditor-General in a financial year, he shall continue to audit the receipts and expenditure of that body or 
authority for a further period of two years notwithstanding that the conditions specified in sub-section (1) 
or sub-section (2) are not fulfilled during any of the two subsequent years.] 

15. Functions of Comptroller and Auditor-General in the case of grants or loans given to other 
authorities  or  bodies.—(1)  Where  any  grant  or  loan  is  given  for  any  specific  purpose  from  the 
Consolidated Fund of India or of any State or of any Union territory having a Legislative Assembly to 
any  authority  or  body,  not  being  a  foreign  State  or  international  organisation,  the  Comptroller  and 
Auditor-General shall scrutinise the procedures by which the sanctioning authority satisfies itself as to the 
fulfilment of the conditions subject to which such grants or loans were given and shall for this purpose 
have right of access, after giving reasonable previous notice, to the books and accounts of that authority 
or body: 

Provided that the President, the Governor of a State or the Administrator of a Union territory having a 
Legislative Assembly, as the case may be, may, where he is of opinion that it is necessary so to do in the 
public interest, by order, relieve the Comptroller and Auditor-General, after consultation with him, from 
making any such scrutiny in respect of any body or authority receiving such grant or loan. 

(2)  Except  where  he  is  authorised  so  to  do  by  the  President,  the  Governor  of  a  State  or                                 

the  Administrator  of  a  Union  territory  having  a  Legislative  Assembly,  as  the  case  may  be,  the 
Comptroller  and  Auditor-General  shall  not  have,  while  exercising  the  powers  conferred  on  him  by          
sub-section (1), right of access to the books and accounts of any corporation to which any such grant or 
loan as is referred to in sub-section (1) is given if the law by or under which such corporation has been 
established  provides  for  the  audit  of  the  accounts  of  such  corporation  by  an  agency  other  than  the 
Comptroller and Auditor-General: 

1. Section 14 renumbered as sub-section (1) thereof by Act 2 of 1984, s. 3 (w.e.f. 16-3-1984). 
2. Subs. by s. 3, ibid., for “rupees five lakhs” (w.e.f. 16-3-1984).  
3. Subs. by s. 3, ibid., for “this section” (w.e.f. 16-3-1984). 
4. Ins. by s. 3, ibid. (w.e.f. 16-3-1984).  

8 

                                                           
Provided that no such authorisation shall be made except after consultation with the Comptroller and 
Auditor-General  and  except  after  giving  the  concerned  corporation  a  reasonable  opportunity  of  making 
representations with regard to the proposal to give to the Comptroller and Auditor-General right of access 
to its books and accounts. 

16.  Audit  of  receipts  of  Union  or  of  States.—It  shall  be  the  duty  of  the  Comptroller  and                 

Auditor-General to audit all receipts which are payable into the Consolidated Fund of India and of each 
State and of each Union territory having a Legislative Assembly and to satisfy himself that the rules and 
procedures  in  that  behalf  are  designed  to  secure  an  effective  check  on  the  assessment,  collection  and 
proper allocation of revenue and are being duly observed and to make for this purpose such examination 
of the accounts as he thinks fit and report thereon. 

17.  Audit  of  accounts  of  stores  and  stock.—The  Comptroller  and  Auditor-General  shall  have 
authority to audit and report on the accounts of stores and stock kept in any office or department of the 
Union or of a State. 

18. Powers of Comptroller and Auditor-General in connection with audit of accounts.—(1) The 
Comptroller and Auditor-General shall in connection with the performance of his duties under this Act, 
have authority— 

(a)  to  inspect  any  office  of  accounts  under  the  control  of  the  Union  or  of  a  State,  including 
treasuries  and  such  offices  responsible  for  the  keeping  of  initial  or  subsidiary  accounts,  as  submit 
accounts to him; 

(b) to require that, any accounts, books, papers and other documents which deal with or from the 
basis  of or are otherwise relevant to the transactions to which his duties in respect of audit extend, 
shall be sent to such place as he may appoint for his inspection; 

(c) to put such questions or make such observations as he may consider necessary, to the person 
in charge of the office and to call for such information as he may require for the preparation of any 
account or report which it is his duty to prepare. 

(2) The person in charge of any office or department, the accounts of which have to be inspected and 
audited by the Comptroller and Auditor-General, shall afford all facilities for such inspection and comply 
with requests for information in as complete a form as possible and with all reasonable expedition. 

19.  Audit  of  Government  companies  and  corporations.—(1)  The  duties  and  powers                                 

of the Comptroller and Auditor-General in relation to the audit of the accounts of Government companies 
shall  be  performed  and  exercised  by  him  in  accordance  with  the  provisions  of  the  Companies                              
Act, 1956 (1 of 1956). 

(2)  The  duties  and  powers  of  the  Comptroller  and  Auditor-General  in  relation  to  the  audit  of  the 
accounts of corporations (not being companies) established by or under law made by Parliament shall be 
performed and exercised by him in accordance with the provisions of the respective legislations. 

(3) The Governor of a State or the Administrator of a Union territory having a Legislative Assembly 
may, where he is of opinion that it is necessary in the public interest so to do, request the Comptroller and 
Auditor-General to audit the accounts of a corporation established by law made by the Legislature of the 
State  or  of  the  Union  territory,  as  the  case  may  be,  and  where  such  request  has  been  made,  the 
Comptroller  and  Auditor-General  shall  audit  the  accounts  of  such  corporation  and  shall  have,  for  the 
purposes of such audit, right of access to the books and accounts of such corporation: 

Provided  that  no  such  request  shall  be  made  except  after  consultation  with  the  Comptroller  and 
to  the  corporation  to  make 

Auditor-General  and  except  after  giving  reasonable  opportunity 
representations with regard to the proposal for such audit. 

1[19A. Laying of reports in relation to accounts of Government companies and corporations.—
(1)  The  reports  of  the  Comptroller  and  Auditor-General,  in  relation  to  the  accounts  of  a  Government 

1. Ins. by Act 2 of 1984, s. 4 (w.e.f. 16-3-1984).  

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company or a corporation referred to in section 19, shall be submitted to the Government or Governments 
concerned. 

(2) The Central Government shall cause every report received by it under sub-section (1) to be laid, as 

soon as may be after it is received, before each House of Parliament. 

(3) The State Government shall cause every report received by it under sub-section (1) to be laid as, 

soon as may be after it is received, before the Legislature of the State. 

Explanation.—For the purposes of this section, “Government” or “State Government”, in relation to a 

Union territory having a Legislative Assembly, means the Administrator of the Union territory.] 

20.  Audit  of  accounts  of  certain  authorities  or  bodies.—(1)  Save  as  otherwise  provided  in                 

section  19,  where  the  audit  of  the  accounts  of  any  body  or  authority  has  not  been  entrusted  to  the 
Comptroller and Auditor-General by or under any law made by Parliament, he shall, if requested so to do 
by the President or the Governor of a State or the Administrator of a Union territory having a Legislative 
Assembly,  as  the  case  may  be,  undertake  the  audit  of  the  accounts  of  such  body  or  authority  on  such 
terms and conditions as may be agreed upon between him and the concerned Government and shall have, 
for the purposes of such audit, right of access to the books and accounts of that body or authority: 

Provided  that  no  such  request  shall  be  made  except  after  consultation  with  the  Comptroller  and 

Auditor-General. 

(2) The Comptroller and Auditor-General may propose to the President or the Governor of a State or 
the Administrator of a Union territory having a Legislative Assembly, as the case may be, that he may be 
authorised to undertake the audit of the accounts of any body or authority, the audit of the accounts of 
which  has  not  been  entrusted  to  him  by  law,  if  he  is  of  opinion  that  such  audit  is  necessary  because a 
substantial amount has been invested in, or advanced to, such body or authority by the Central or State 
Government  or  by  the  Government  of  a  Union  territory  having  a  Legislative  Assembly,  and  on  such 
request  being  made,  the  President  or  the  Governor  or  the  Administrator,  as  the  case  may  be,  may 
empower  the  Comptroller  and  Auditor-General  to  undertake  the  audit  of  the  accounts  of  such  body  or 
authority. 

(3) The audit referred to in sub-section (1) or sub-section (2) shall not be entrusted to the Comptroller 
and  Auditor-General  except  where  the  President  or  the  Governor  of  a  State  or  the  Administrator  of  a 
Union territory having a Legislative Assembly, as the case may be, is satisfied that it is expedient so to do 
in the public interest and except after giving a reasonable opportunity to the concerned body or authority 
to make representations with regard to the proposal for such audit. 

CHAPTER IV 
MISCELLANEOUS 

21.  Delegation  of  power  of  Comptroller  and  Auditor-General.—Any  power  exercisable  by  the 
Comptroller and Auditor-General under the provisions of this Act, or any other law may be exercised by 
such officer of his department as may be authorised by him in this behalf by general or special order: 

Provided  that  except  during  the  absence  of  the  Comptroller  and  Auditor-General  on  leave  or 
otherwise, no officer shall be authorised to submit on behalf of the Comptroller and Auditor-General any 
report which the Comptroller and Auditor-General is required by the Constitution or the Government of 
Union  Territories  Act,  1963  (20  of  1963)  to  submit  to  the  President  or  the  Governor  of  a  State  or  the 
Administrator of a Union territory having a Legislative Assembly, as the case may be. 

22.  Power  to  make  rules.—(1)  The  Central  Government  may,  after  consultation  with  the 
Comptroller and Auditor-General, by notification in the Official Gazette, make rules for carrying out the 
provisions of this Act in so far as they relate to the maintenance of accounts. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the manner in which initial and subsidiary accounts shall be kept by the treasuries, offices and 

departments rendering accounts to audit and accounts offices; 

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(b) the manner in which the accounts of 1[the Union or of a State or of] any particular service or 

department  or  of  any  particular  class  or  character,  in  respect  of  which  the  Comptroller  and                  
Auditor-General has been relieved from the responsibility of compiling or keeping the accounts, shall 
be compiled or kept; 

(c) the manner in which the accounts of stores and stock shall be kept in any office or department 

of the Union or of a State, as the case may be; 

(d) any other matter which is required to be, or may be, prescribed by rules. 

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one  session  or  2[in  two  or  more  successive  sessions],  and  if,  before  the  expiry  of  3[the  session 
immediately following the session or the successive sessions aforesaid] both Houses agree in making any 
modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule. 

23.  Power  to  make  regulations.—The  Comptroller  and  Auditor-General  is  hereby  authorised  to 
make regulations for carrying into effect the provisions of this Act in so far as they relate to the scope and 
extent  of  audit,  including  laying  down  for  the  guidance  of  the  Government  Departments  the  general 
principles  of  Government  accounting  and  the  broad  principles  in  regard  to  audit  of  receipts  and 
expenditure. 

24.  Power  to  dispense  with  detailed  audit.—The  Comptroller  and  Auditor-General  is  hereby 
authorised to dispense with, when circumstances so warrant, any part of detailed audit of any accounts or 
class  of  transactions  and  to  apply  such  limited  check  in  relation  to  such  accounts  or  transactions  as  he 
may determine. 

25. Repeal.—The Comptroller and Auditor-General (Conditions of Service) Act, 1953 (21 of 1953), 

is hereby repealed. 

26. Removal of doubts.—For the removal of doubts, it is hereby declared that on the commencement 
of  this  Act  the  Government  of  India  (Audit  and  Accounts)  Order,  1936,  as  adapted  by  the  India 
(Provisional Constitution) Order, 1947, shall cease to be in force except as respects anything done or any 
action taken thereunder. 

1. Ins. by Act 58 of 1976, s. 4 (w.e.f. 1-3-1976).  
2. Subs. by Act 58 of 1976, s. 4, for “in two successive sessions” (w.e.f. 1-3-1976).  
3. Subs. by s. 4, ibid., for “the session in which it is so laid or the session immediately following” (w.e.f. 1-3-1976). 

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