The Supreme Court today directed status quo on the audit of Delhi's electricity distribution companies (discoms) by a CAG-appointed independent Chartered Accountant.

A partial Court working days bench of Justice KV Viswanathan and Justice Shree Chandrashekhar passed the order, while issuing notice on a plea filed by the Delhi Electricity Regulatory Commission challenging an order of the Appellate Tribunal for Electricity in April.

This order held that it was impermissible for the DERC to entrust the DISCOMs' audit to the CAG and directed appointment of an independent CA to conduct the audit. Assailing this order, DERC filed the present petition.

The matter has been listed next on July 15, to be considered by the same bench which delivered the August, 2025 judgment on 'Regulatory Assets'. Vide this judgment, the Electricity Regulatory Commissions were called on to conduct "strict and intensive" audits of the circumstances in which the power DISCOMs continued without recovery of regulatory assets. The Court also said that regulatory assets, which are created to shield consumers from sudden tariff hikes, should not remain unresolved for extended periods.

This judgment did not specify as to who must conduct the proposed audit. As such, the bench led by Justice Viswanathan stayed the audit of Delhi's discoms until the scope of the August 2025 judgment is considered.

Appearance: Solicitor General Tushar Mehta for DERC, Senior Advocate Dr Abhishek Manu Singhvi for DISCOMs

Case Title: DELHI ELECTRICITY REGULATORY COMMISSION v. FORUM OF REGULATORS, C.A. No. 8732 -8733/2026