CAG, Attorney & Advocate General - Questions and Answers

ANSWER: Only 1

Explanation:

Comptroller and Auditor General of India -


• Article 148 - There shall be a Comptroller and Auditor-General (CAG) of India who shall be appointed by the President by warrant under his hand and seal and shall only be removed from office in like manner and on the like grounds as a judge of the Supreme Court.
  
  
• CAG heads the Indian Audit and Accounts Department. This department was created in 1753, during British Rule.
  
  
Dr. B. R. Ambedkar said that the CAG shall be the most important officer under the Constitution of India because -

1. CAG is considered guardian of the public purse.

2. He controls financial system at the Centre and State level.


• He is one of the pillars of the democratic system of Government in India.


• The others pillars are - the Supreme Court, the Election Commission and the Union Public Service Commission.

Appointment and Term -


• The CAG is appointed by the President.


• He shall only be removed from office in like manner and on the like grounds as a Judge of the Supreme Court.


• CAG holds office for a period of 6 years or up to the age of 65 years, whichever is earlier.


• CAG can resign any time from his office by addressing the resignation letter to the President.


• Thus, like a judge of Supreme Court, the grounds for removal are - proved misbehavior or incapacity.

ANSWER: 1, 3

Explanation:

Independence of CAG -

The following provisions of Constitution safeguard and ensure the independence of CAG -


• Though President appoints him, he can be removed only by a process mentioned in the Constitution. Thus he as security of tenure.


• The salary and other conditions of service of the Comptroller and Auditor-General shall be such as may be determined by Parliament by law but neither the salary of a Comptroller and Auditor-General nor his rights in respect of leave of absence, pension or age of retirement shall be varied to his disadvantage after his appointment.


• The Comptroller and Auditor-General shall not be eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold his office.


• The conditions of service of persons serving in the Indian Audit and Accounts Department and the administrative powers of the Comptroller and Auditor-General shall be prescribed by rules made by the President after consultation with the Comptroller and Auditor-General.


• The administrative expenses of the office of the CAG are charged upon the Consolidated Fund of India.


• No minister can represent the CAG in Parliament.


• No minister can be called upon to take any responsibility for any actions done by him.

ANSWER: 1, 2, 4

Explanation:

Duties and Powers of CAG -


• Article 149 - Parliament is authorized to define duties and functions of CAG in relation to the accounts of the Union and of the states and of any other authority or body.


• CAG’s (Duties, Powers and Conditions of Service) Act, 1971 was amended in 1976 to separate accounts from audit in the Central Government.

The duties and functions of the CAG are -

1. CAG audits the accounts related to all expenditure from -

(a) the Consolidated Fund of India;

(b) consolidated fund of each state;

(c) consolidated fund of each Union Territory having a Legislative Assembly;

(d) Contingency Fund of India;

(e) Public Account of India;

(f) Contingency fund of each state;

(g) Public account of each state;

(h) trading, manufacturing, profit and loss accounts of any department of the Central Government and state governments etc.

2. He audits the receipts and expenditure of -

(a) centre and each state;

(b) all bodies and authorities substantially financed from the Central or state revenues;

(c) government companies; and

(d) other corporations and bodies, when required.

3. When requested by the President or Governor, CAG audits the accounts of any other authority like local bodies etc.

4. Article 150 - The accounts of the Union and of the States shall be kept in such form as the President on the advice of the Comptroller and Auditor-General of India, may prescribe.

5. Article 151 - The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament.

6. Article 151 - The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State.

7. Article 279 - The net proceeds of any tax or duty is decided and certified by CAG, whose certification is final.

8. He is philosopher and guide of the PAC of Parliament of India.

9. CAG compiles and maintains the accounts of state governments but not of Union Government. He was relieved of this duty in 1976.

10. This was because there was separation of accounts from audit.


• Appropriation accounts - This compares the expenditure sanctioned by the Parliament through the Appropriation Act with the actual expenditure.


• Finance accounts - They give annual receipts and expenditure of the Union Government.

3 audit reports are submitted by CAG to the President -

1. audit report on appropriation accounts;

2. audit report on finance accounts; and

3. audit report on public undertakings;


• When President lays these reports before both houses of the Parliament, the Public Accounts Committee examines them and reports its findings to the Parliament.

ANSWER: Only 2

Explanation:

Role of CAG -


• CAG makes sure that executive are responsible to the Parliament in the area of financial administration.


• CAG undertakes audit of expenditure on behalf of the Parliament and hence is an agent of Parliament.


• CAG is responsible only to the Parliament.


• Along with legal and regulatory audit, CAG can also conduct propriety audit.


• Propriety Audit is seeing that government expenditure follows ‘wisdom, faithfulness and economy’.


• If not, CAG can comment on the wastage and extravagance of such expenditure.


• While legal and regulatory audit is mandatory for CAG, the propriety audit is discretionary.


• CAG cannot ask for details of secret service expenditure.


• He has to just accept a certificate from administrative authority which says that the said expenditure has been incurred.


• The Constitution of India sees CAG to be Comptroller as well as Auditor General.


• But the CAG has no control over the issue of money from the consolidated fund and many departments are authorised to draw money by issuing cheques without specific authority from the CAG, who is concerned only at the audit stage when the expenditure has already taken place.


• Thus he is just Auditor General and not a Comptroller.


• But CAG of Britain has both powers of being Comptroller as well as Auditor General.

ANSWER: Only 1

Explanation:

Audit of Corporations by CAG -


• CAG’s role in auditing of public corporations is restricted.

There are broadly 3 categories -

1. Total and Direct Audit by the CAG - Examples of this are - ONGC, Air India, Damodar Valley Corporation, Indian Airlines Corporation etc.

2. Audit by private professional auditors appointed by Central Government on consulting CAG - Here if required, CAG can undertake supplementary audit. Examples are Industrial Finance Corporation etc.

3. Total audited by private professionals - The public corporations who get audited exclusively by private professional auditors submit their annual reports and accounts directly to the Parliament. Examples are LIC India, RBI, FCI, SBI etc.


• Government companies get audited by private auditors appointed by the Government on consulting CAG.


• But, CAG can undertake supplementary audit of such companies.


• To use specialists and experts from outside for handling technical aspects of audit of specialized enterprises like engineering, iron and steel, chemicals, etc. an ‘Audit Board’ was established as a part of the office of CAG in 1968.


• Administrative Reforms Commission of India recommended establishment of this board which consists of a Chairman and two members appointed by the CAG.

ANSWER: Both 1 and 2

Explanation:

• Article 76 provides for the office of the Attorney General for India who is the highest law officer in the country.

Appointment and Term of the Attorney General -


• The Attorney General (AG) is appointed by the President.


• He must be a person who is qualified to be appointed a judge of the Supreme Court.


• That means, he must be a citizen of India and he must have been a judge of some High Court for five years or an advocate of some High Court for ten years or an eminent jurist, in the opinion of the President.


• The term of office of the AG is not fixed by the Constitution.


• Also, the Constitution does not contain the procedure and grounds for his removal.


• He holds office during the pleasure of the President.


• Thus, he may be removed by the President at any time.


• He may also quit his office by submitting his resignation to the President.


• Conventionally, he resigns when the government (Council of Ministers) resigns or is replaced.


• This is because he is appointed on the government’s advice.


• The remuneration of the AG is not fixed by the constitution and receives such remuneration as the President may decide.

Solicitor General of India -


• Apart from AG, there are other law officers of the Government of India.


• They are the solicitor general of India and additional solicitor general of India.


• They assist the AG in the fulfilment of his official responsibilities.


• Only the office of the AG is created by the constitution.


• Article 76 does not mention about the solicitor general and additional solicitor general.


• The AG is not a member of the central cabinet.


• There is a separate law minister in the central cabinet to look after legal matters at the government level.

ANSWER: All of the above

Explanation:

• AG is the Chief Law Officer of the Government of India.

Duties -

1. To give advice to the Government of India upon such legal matters, which are referred to him by the President.

2. To perform such other duties of a legal character that are assigned to him by the President.

3. To discharge the functions conferred on him by the constitution or any other law.

The President has assigned the following duties to the AG -

1. To appear on behalf of the Government of India in all cases in the Supreme Court in which the Government of India is concerned.

2. To represent the Government of India in any reference made by the President to the Supreme Court under Article 143 of the Constitution.

3. To appear (when required by the Government of India) in any high court in any case in which the Government of India is concerned.

Rights -

1. In the performance of his official duties, the Attorney General has the right of audience in all courts in the territory of India.

2. He has the right to speak and to take part in the proceedings of both the Houses of Parliament or their joint sitting and any committee of the Parliament of which he may be named a member.

3. But he doesn’t have a right to vote.

4. He also enjoys all the privileges and immunities that are available to a member of Parliament.

Limitations on the Attorney General in order to avoid any complication and conflict of duty -

1. He should not advise or hold a brief against the Government of India.

2. He should not advise or hold a brief in cases in which he is called upon to advise or appear for the Government of India.

3. He should not defend accused persons in criminal prosecutions without the permission of the Government of India.

4. He should not accept appointment as a director in any company or corporation without the permission of the Government of India.


• But, the Attorney General is not a full-time counsel for the Government.


• He does not fall in the category of government servants.


• He can pursue private legal practice.

ANSWER: M.C. Setalvad

Explanation:

Former Attorney Generals -

1. M.C. Setalvad - 1950-1963.

2. C.K. Daphtary - 1963-1963.

3. Niren De - 1968-1977.

4. S.V. Gupte - 1977-1979.

5. L.N. Sinha - 1979-1983.

6. K. Parasaran - 1983-1989.

7. Soli J. Sorabjee - 1989-1990.

8. G. Ramaswamy - 1990-1992.

9. Milon K. Banerjee - 1992-1996.

10. Ashok K. Desai - 1996-1998.

11. Soli J. Sorabjee - 1998-2004.

12. Milon K. Banerjee - 2004-2009.

13. Goolam E. Vahanvati - 2009-2014.

14. Mukul Rohatgi - 2014-till date.

ANSWER: Both 1 and 2

Explanation:

• Article 165 provides for the office of the Advocate General of the state.


• He is the highest law officer in the state and analogous to the Attorney General of India.

Appointment and Term -


• He is appointed by the Governor.


• He must be a person who is qualified to be appointed a judge of a High Court.

Qualification for being appointed a judge of High Court are -

1. He must be a citizen of India.

2. He must have held a judicial office for ten years or been an advocate of a High Court for ten years.


• The term of office of the Advocate General is not fixed by the Constitution.


• He holds office during the pleasure of the Governor.


• Constitution does not contain the procedure and grounds for his removal.


• He may be removed by the Governor at any time.


• He may quit his office by submitting his resignation to the Governor.


• Generally, he resigns when the government (Council of Ministers) resigns or changes, as he is appointed on its advice.


• He receives remuneration determined by the Governor.

Duties and Functions -

1. To give advice to the government of the state upon such legal matters which are referred to him by the Governor.

2. To perform such other duties of a legal character that are assigned to him by the Governor.

3. To discharge the functions conferred on him by the Constitution or any other law.


• In the performance of his official duties, the Advocate General can appear before any court of law within the state.


• He also has the right to speak and to take part in the proceedings of both the Houses of the State Legislature or any committee of the State Legislature of which he may be named a member, but without a right to vote.


• He enjoys all the privileges and immunities that are available to a member of the State Legislature.