REGISTERED No. D-(D)-72
The Gazette of India
EXTRAORDINARY
PART II—Section 2
PUBLISHED BY AUTHORITY
No. 7] NEW DELHI, THURSDAY, MARCH 1, 1984/PHALGUNA 11, 1905
Separate paging is given to this Part in order that it may be filed
as a separate compilation
LOK SABHA
The following Bill was introduced in Lok Sabha on the 1st March, 1984: —
Bill No. 14 OF 1984
A Bill further to amend the Comptroller and Auditor-General's • (Duties, Powers and Conditions of Service) Act, 1971.
BE it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows: —
1. This Act may be called the Comptroller and Auditor-General's Short title.
(Duties, Powers and Conditions of Service) Amendment Act, 1984.
56 of 1971.
Amend- ment of section 6 2. In the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971 (hereinafter referred to as the principal Act), in section 6, after sub-section (6), the following sub- sections shall be inserted, namely: —
"(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 alter the commencement of the Comptrol- ler and Auditor-General's (Duties, Powers and Conditions of Service)
(1)
2 THE GAZETTE OF INDIA EXTRAORDINARY [PART H—Amendment Act, 1984, shall, on such demission, be entitled to—
<'j) The pension to which he would have been entitled under the rules ol the Service to which he belonged by reckoning his service as the Comptroller and Auditor-General as continuing approved service counting {or pension in such Service; and
(b) a special pension of seven hundred rupees per anmnm in respect of each completed year of service as the Comptroller and Auditor- General
Provided that the aggregate of the amounts payable to him under clause (a) and clause (b) of this subsection shall in no case exceed a sum of twenty thousnd and four hundred rupees per mium.
(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] the Comptroller and Auditor-General after the commencement of the Com- troller aad Auditor-General's (Duties, powers and Conditions of Service) Amendment Act, 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 res- pect of eih completed year of service as the Comptroller and Auditor- General:
Provided that the aggregate of the amojaits payable to him mider clause) (a) and clause (/>) of this sub-section shall in no case exceed a sum of twenty thousand and four hundred rupees per annum, and such sum shall include the aggregate of all other pensions, if any, payable tu him and the commuted portion, if any, of Ms pension."
3. Section 14 of the principal Act shall be renumbered as sub-section
(i) thereof and—
(a) in the Explanation to sub-section (1) as so renumbered,—
Amend* ment of section 14.
(i) for the words "rupees five lakhs", the words "rupees twenty-five lakhs" shall be substituted;
(ii) for the words "this section", the words "this sub-section" shall be substituted;
(b) after sub-section (1), as so renumberedj the following sub- lections shall be inserted, namely: —
"(2) Notwithstanding anything contained in sub-section (1), the Comptroller and Auditor-General may, with the previous approval or 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 grants or loans 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 wore.
SEC 2] THE GAZETTE OF INDIA EXTRAORDINARY 3(3) Where the receipts and expenditure of any body or authority are, by virtue of the fulfilment of the conditions speci- fied in sub-section (1) or sub-section (2), audited by the Comp- troller 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 condi- tions specified in sub-section (1) or sub-section. (2) are not fulfilled during any of the two subsequent years/'.
4. After section 19 of the principal Act, the following section shall be
inserted, namely: —
Insertion of new section 19 A.
'19'A. (1) The reports of the Comptrol!er and Auditor-General, in relation to the accounts of a Government 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 (/) to be laid, as soon as may be after it is received, before each House of Parliament-
Laying of reports fa. relation to accounts of Govern- ment com- panies and corpora- tion's.
(3) The State Government shall cause every report received by it under sub-section (/) 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 Legis- lative Assembly, means the Administrator of the Union territory.'.
4 THE GAZETTE OF INDIA EXTRAORDINARY LPAIU II-STATEMENT OF OBJECTS AND REASONS
The Comptroller and Auditor-General's (Duties, Powers and Condi- tions of Service) Act, 1971 was enacted to determine the conditions of service of the Comptroller and Auditor-General and prescribe his duties and powers. The Act was amended in 1976 mainly for the purpose of making the necessary provision for relieving the Comptroller and Audi- tor-General from the responsibility for compiling accounts. In the light of the changed circumstance;; and experience gained from the working of the provisions of the Act, it is considered necessary to make certain furher amendments.
2. While the provisions as to pension payable to officers of Govern- ment have been modified, the pension payable to the Comptroller and Auditor-General remains the same as fixed in 1971. It is accordingly proposed to provide that subject to a maximum of Rs. 20,400/- per annum, a serving officer appointed as a Comptroller and Auditor-General will be entitled by way of pension to an amount equal to the aggregate of the pension admissible to him in the service to which he belonged by treating his service as Comptroller and Auditor-General as continued approved service for this purpose and a special pension calculated at the rate of Rs. 700/- per annum for each completed year of service as Comp- troller and Auditor^General. It is also proposed to provide that subject to the aforesaid maximum of Rs. 26,400/- per annum, a retired officer appointed as a Comptroller and Auditor-General will be entitled by way of pension to the aggregate of the pension admissible to him under the rules governing the service to which he belonged and a special pension calculated at the rate of Rs. 700/- per annum for each completed year of service as Comptroller and Auditor-General. These revised provisions as to pension will be applicable onl> in the case of persons demitting office as Comptroller and Auditor-General (on completing the term or attain- ing the age of 65 years or on ground of ill health or by resignation) after the commencement of proposed legislation (vide clause 2 of the Bill).
3. At present, under section 14 of the Act, the Comptroller and Audtor- General is required to audit the receipts and expenditure of a body or authoritv which is substantially financed by grants or loans from the Consolidated Fund of India or of any State or of any Union territory having a Legislatvie Assembly. According to the Explanation to that section, where the grant or loan to a body or authority from the Conso- lidated Fund of India or of any State or of any such Union territory is not less than Rs. 5 lakhs and the amount of such grant or loan is not leas than seventy-five per cent, of the total expenditure of that body or authority, such body or authoritv is dsemed to be substantially financed by Fuch grant or loan. It is proposed to enhance the limit specified in this Explanation from Rs. 5 lakhs t.o Rs. 25 lakhs. It is also proposed to provide that the Comptroller and Auditor-General may, with the approval of the President or Governor or Administrator, undertake audit of the receipt and expenditure of a body or authority which is in receipt of Gov- ernmeill grant ct loan of rupees one crore or more in a year, though this
SBC. ij THE GAZETTE OF INDIA EXTRAORDINARY bmay be less than 75 per cent, of the total expenditure of that body or authority. It is further proposed to provide that where a body or authority comes within the purview of the audit of the Comptroller and Auditor- General in any year by reason of the tests in the Explanation and new sub-section (2) being complied in its case, the Comptroller and Auditor- General shall continue to audit the receipts and expenditure of such body or authority for the succeeding two years also even if such body or authority fails to comply with the tests provided in the said Explanation^ and new sub-section (2) in either or both of those years (inde clause 3 of the Bill).
4. The present opportunity is being availed of to include in the Act a provision for the laying of audit reports of the Comptroller and Auditor- General in relation to the accounts of Government companies or corpora- tions referred to in section 19 of the Act before Parliament or, as thq case may be, the Legislature of the State concerned (vide clause 4 of the Bill).
5. The Bill seeks to achieve the above objects.
NEW DELHI;
PRANAB MUKHERJEE.
The 27th February, 1984.
PRESIDENTS RECOMMENDATION UNDER ARTICLE 117 OF
THE CONSTITUTION OF INDIA
[Copy of letter dated 27th February, 1984 from Shri Pranab Kumar Mukherjee, Minister of Finance to the Secretary-General, Lok Sabha.]
Thft President, having been informed of the subject matter of the Bill lo amend the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971, recommends under article 117(1) of the Constitution for the introduction of the Bill in and under article 117(3) i^P the Constitution for the consideration of the Bill, by Lok Sabha.
6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 2]FINANCIAL MEMORANDUM
Clause 2 of the Bill proposes to amend section 6 of the Act by inserting sub-sections (6A) and (6B). The proposed sub-section (6A) provides that a person, who before his appointment as Comptroller and Auditor- General, was in service of Government, on demitting office as Comptroller and Auditor-General, will be entitled to an aggregate pension not exceed- ing Rs, 20,400/- per annum. The proposed sub-section (6B) provides that a person who before assuming office as Comptroller and Auditor-General was in receipt of pension for previous service under Government will be entitled to a special pension of Rs. 700/- per annum for each com- pleted year of service as Comptroller and Auditor-General subject to a maximum aggregate pension of Rs. 20,400/- per annum. In terms of th" existing sub-section (2) and sub-section (3) of section 6 of the Act, the maximum pension admissible to the Comptroller and Auditor-General is Rs. 18,000/- per annum. The Bill, if enacted, will, therefore, entail on the basis of the existing rate of normal service pension, an additional exj^nditure (charged) of Rs. 2400/- per annum, from the Consolidated Fund of India.
2. The Bill does not involve any other expenditure whether recurring
or non-rer arring.
SUBHASH C. KASHYAP,