 corhigendum no 2 to the comptroller and auditor-general's (duties, powers and conditions of service) bill, 1969(to be/as introduced in lok sabha ) 1 in the docket psge ,-for "(shri morarji desai, deputv prime minis_ter -and minister of finance)rt read it (shrimati indira gandhi! prime minister, minister of finance, m1nister of atomic energy and minister of planning)" new delhi; july 22 1~9 asadha 31, 18 (saka)  the comptroller and auditor general's (duties, l'nwers and conditions of service) bill, 1969 a billto detenmine the conditions of service 'of the comptroller -and auditor genetal of india and to prescribe his duties and power and for matters connected therewith or incidental thereto be it enacted by parliament in the twentieth year of the republic of india as follows:- chapter i preliminary1  this act may be called the comptroller and auditor-general's short s (duties, powers and conditions of service) act, 1969 title 2 in this act, unless the context otherwise requires,-deftni-(a) "accounts", in re~ation to commercial undertakings of a g9vtions c· el"nment, includes trading, manufacturing and profit and loss accounts 10 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  c·  items specified in the law made in accordance with the provisions of the constitution or of the government of union territories act, 1003, tor the appropriation of moneys out of the consolidated fund 20 of 1961 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 cod-s stitution; (d) "state" means a state specified in the first schedule to the consti tu tion; (e) "union" includes, a union territory, whether having a legislative assembly or not 10  chapter ii salary and <yi1her conditions of service of the comptroller and auditor-generalsalary 3 there shall be paid to the comptroller and auditor-general a salary at the rate of four thousand rupees per mensem: r s 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 20 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 amoultt of that pension; and (b) if he had, before assuming office, received, in lieu of a portion 2, 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; and (c) if he had, before assuming office, received, or become eligible for receiving, a retirement gratuity in resped of such previowi lei'- 30 vice, by the pension equivalent of that gratuity 4 the comptroller and auditor-general shall hold office for a term, of six years from the date on which he assumes such oftlce: term of office provided that he may, at any time, by writing under his hand addressed to the president, resign his office 3, e:rplanation-for the purpose of this section, the term of six years in respect of the comptroller and auditor-general holding oftlce immediately before the comimencement of this act, shall be computed from the date on which he had assumed oftlce leave 5 (1) a person who, immediately before the date of assuming oftlce 4o ii!! the comptroller and auditor-general, was in the service of govern· ment may be granted during his tenure of oftlce 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, notwith •• , standing 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 ti~ being applicable to a member of the indian administrative service 5 (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 pension 6 u) a person who, immediately before the date of assullling office 811 itjae :comptroller and auditor-general, was intbe service of government 10  1 _ deemed to have retired from service on the date on which he ~ters upon of6ce as the comptroller and auditor--general and shall, on ~i  ~ thesaid office, be eligible to-(a) such pension as jdjay be admissible to him in accordance with the rules for the time being applicable to the service to which he 1'5 belodced,  his service as comptroller and auditor-general beini nekonedfor the purposes of those rules as continuing approved _mea countinar for pension in the service to which he belon&ed; and (b) an additional pension of six hundred rupees per annum in <niq)eet ,of each completed year of service as comptroller and auditor-20 general, such service in respect of the person holding office as the comptroller and auditor-general immediately before the commencement of this act being computed from the date on which he had entered upon office as the comptroller and auditor-general: provided that the aggregate of all pensions payable to a person who 2, had held ofbce as the comptroller and auditor-general, inclusive of the ogiiuduted portion, if any, of his pension and the pension equivalent of <6e 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 ,",-ed shall not exceed thirteen thousand, three hundred and thirty 30 three rupees and thirty three paise per annum (2) a person who, immediac)ely before the date or assuming office 'u the comptroller and auditor-general, was in receipt of, or, had beeome eligible for receiving, a pension in respect of any previous service under government, shall, on demitting office as the comptroller and 3s auditor-general, be eligible t8 an additional pension of six hundred rupees per annum in respect of each completed year of service as compo rtroller and auditor-general: ptovided that the aggregate of all pensions payable to a person who had held office as the comptroller and auditorgeneral, inclusive of the o commuted portion, if any, of his pension and the pension equivalent of 4 the retirement gratuity, if any, received or receivable by him shall not exceed thirteen thousand, three hundred and thirty three rupees and  iriy -:three  paise per annum (3) any other person who is appointed as the comptroller and auditor-4s general shall be eliiible on his retirement to suchpensioll not e:a:ceedlng dlii1een thoasand, tbree hudred and thirty three rupees andthiriy· thne paise  annum as the president ma" by order, determine i'gi\od , 'i'he civil pensions (commutation) rules for the time being in force shall, with such ada-ptations as may be made therein by the president, apply to a person who had held office as the comptroller and auditor-general 8 every person holding office as the comptroller and auditor-general 5 shall be entitled to subscribe to the general provident fund (central services) right to subscribe to general provident fund other conditions ot iervice 9 save as otherwise expressly provided in this act, the other conditions of service of a person holding office as the comptroller and auditor-general including his emoluments during any period of duty out of india 10 and his travellinar allowance while travelling on duty, shall be determbled by the rules for the time being applicable to a member of the indian administrative service holdinit the rank of secretary to the govej'lulmllt of india: provided that nothing in this section shall have effect so as to ~ve a is person, who immediately before the date of assumine office as the comptroller and auditor-general, was in the service of gov8rament, jeas 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 be belonced, his service as comptroller and auditor-general beinr treated for the ae purpose or this proviso as continuing service in the service to which he belonred  chapter iii duties and power of the comptroller and auditor-general10 (1) the comptroll~r and auditor-general shall be responsible- 2s comptrollerand auditor general to compile accounts of the union and states (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 30 specified in clause (a) as may be necessary: provided that the preside'nt as respects the accounts of the union, and the governor of a state as respects the account of that state may, after consultation with the comptroller and auditor-general, by order, relieve him from the responsibility for compiling the accounts of any 35 particular service or department of the union or a state, as the case may be: provided further that the president may, after consultation with the comptn her and auditor-general, by order, relieve him from :the responsibility for keeping the accounts of any particular class or character 40 (2) where, under any arrangement, a person other than the comptl'oller and auditor-general haa before the commencement of this act been re'sponsible-' (i) for compiling the accounts of any particular service or department of the union or a state, or 45 (ii) for keeping the accounts of any particular class or charaeter, such arrangement shall, notwithstanding anything contained in subsection (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, and in the case referred to in clause (ii), by an order of the president 5 11 the comptroller and auditor-general shall, from the accounts compiled 'by him or by any other person responsible in that behau, 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 purposes of the union, of each state 10 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 comptrollerand auditor_ general to prepare andlubmit accounts to the president, governors of stat and ad_ ministrators of union territories havin~ legislative~­embu • is 12 the comptroller and auditor-general shall, in 80 far as the ac-'counts for the compilation or keeping of which he is responaible 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, 20 and render such assistance in the preparation of their annual financial statements as they may reasonably ask for comptrol_ lerand auditor-general to give informa_ tionand render assistance to the union and states 13 it shall be the duty of the comptroller and auditor-general-general provisions relating to audit (a) ito audit dl expenditure from the consolidated fund of india and of each state and of each union tenitory 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 tt'he authority which governs it; , 30 (b) to audit all transactions of the union and of the states relating to contingency funds and public accounts; (c) to audit all trading, manufacturlng, profit and 108s accounts and balance sheets kept in any department of the union or of a state; and in each case to report on the expenditure, transactions or accounts 80 35 audited by him u where any booy or authority is errtirely 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 s expenditure of that body or authority audit of expenditureof bodies or authorities ftnanced from union orsta'-revenues 15 (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- 10 general shall scrutinise the procedures by which the sanctiodingauthority 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: 1 s functions of c0mptroller and aulitol'-general in the caaeof vanta or loans liven to other authoritias or bodies 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 pubuc interest, by order, relieve the comptroller and auditor-general, after consultation with him, from making any such scrutiny in respeot of any 20 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 lep lative assembly, as the case may be, the comptroller and auditor-general shall not ,have, while exercising the powers conferred on him by sub- 25 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 jf 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: 30 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 tflhe proposal to give to the comptroller and auditorqeneralright of access to its books and accounts 3s audit of recejpts of union or states u it shall be the duty of the comptroller md auditor,general to audit all receipts which are payable into the consolidated fund of lndia and of each state and of each union territory having a legislative assembly and tosatillfy himself that the rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and pro- 40 per allocation ~ revenue and are being duly observed and to make for this purpose such examination of the accounts as he thinks fit and report thereon ~  at 17 the comptroller and auditor-general shall have ,authority to audit and report on the accounts of stores and stock kept in any nftice or depart- 4s ment of the union or a state audit of accounta cd stores add aoek 18 (1) the comptroller and auditor-general shall in eonnectien wiith the performance of his duties under this act, have authority-(<<) 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 ~ powers of comptroller and auditor-general inconnection with audit of accounts (b) to require that any accounts, books, papers and ather documents which deal with or form the basis of or are otherwise relevant 10 tc) the transactions to which his duties in respect of audit extend, shall be sent to such place ashe may appoint for his inspeetion; (c) to put such questions or make such observations as he may consider necessary, to the person in charge of the oftlce and, to call for such information as he may require for the preparation of any account or repbrt which it is his duty to prepare is (2) the person in charge of any office or department, rthe accounts of which have to be inspected and audited by the comptroller and auditor-general, shall afford an facilities for such inspection and comply with requests for information in 8s complete 8 form as possible and with au reasonable expedition 20 19~ (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 lof 1958 companies act, 1956 audit of  government companies bnd corporations (2) the duties and powers of the comptroller and auditor-general 35 in relation to the audit of the accounts' of corporations (not being companies) established by or under law made by parliament shall be performed ~nd exercised by him in accordance with the provisions of the respective acts (:i) the governor of a state or the administrator of a union territory 30 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-:gener~l to audit the a~ounts of a corporation established by law made 1>y 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 35 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 acco~nts of such corporation: ' provided that no such request shall be made except after consultation with the comptroller and auditor-general and except after giving a rea-40 sonable opportunity to the corporation to make representations with regardtl) the proposal for such audit zoo (1) save as otherwise provided in section 19, where rthe audit of audit of accounts of certain authorities ar bodies t~ 8«ollnts of any body or authority has not been entrusted to the comptroller and auditor-general by or under any law made by parliament, 45 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 ease may be, undertake the audit of the accounts of such body ~''fluthority on such terms and 1!onditions as may be agi"ef"d upon between him and the concernecl government and shan have; for tne purpolte8 ()f such audit, riaht of access to the books and accounts of that body or authority: provided that no such request shall be made except after consulltation with the comptroller and auditor-general (2) the comptroller and auditor-general may propose to the presi- s dent or the governor of a state or the administrattor of a union territory having a legislative assembly, as the case maybe, 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 substan/tial amount 10 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 ac- is counts 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 satisftet:l 20 that it is expedient 80 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 miscellaneouszl any power exercisable by the comptroller and auditor-general under the provisions of this ad, or any other a-ct may be exercised by such officer of hib department as may· be authorised by him in this behalf by general or special order: power of comptrol ler and auditor-general to delegate functions provided that except during the absence of the c~l11ptroller and auditor-general on leave or otherwise no ofticer sball be authorised to submit 30 on behalf of the comptroller and auditor-general any report which the comptroller and auditor-general is required by tbe constitution ur the c'overnment of union territories act, 1963 to submit to the president or 20 nf 1963 tbe gov~rnor of a state or the administrator of a union territory hning a legislative assembly, as the case may be~ 35 power to make rul • 22 (1) the central government may after consultation with the comptroller and auditor-general by notification in the official gezette, tm!lke rules tor carrying out the purposes 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 fore- to going power, such rules may provide for all ot any of the fonowing matters namely:-(a) the manner in which initial and subsi'diary accounts shell be kept by the treasuries, offices and departments rendering accounts  tt'l audit and account8 offtci!i5: (b) the manner in which the accounts of any particular service or department 'or at 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 5 compiled or kept; (c) the manner in which the accounts of stores and stock shall be kept in any office ()'i' department 'of the union or a statp as the case may be; (d) any other matter which is required to be or may be, pres-[0 cribed by rules1 (3) every rule matie under this section shall be ilbid 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 in two successive sessions, and if before the expiry of the session in 15 which it is so laid or the session immediately following both hou!'es ligree in making any- modification in the rule or both houses agree that the rule should not b£' made, the rule shall thereafter have effert only in such modjfied form or be of no effect, as the case may be so, however, that any such modification or annulment shall be withlfut 20 prejutiice to the vlblidity of anything previously done under that rule powert make re,wetiona z 23 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 ctf audit, including laying down for the guidance of the government departments the general princi-25 pies of government accounting and the broad principles in regard to audit of receipts and expentiiture 24 the comptroller and auditor-general is hereby authorised to dispense with when circumstances so warrant, any part f1f detailed, audit of any accounts or class of transactions and to apply such limited check 30 in relation to such accounts or tnmsactions as he may determine | power    ||----------|| dispense || with     || detailed || audit   |25 the comptroller and auditor-general (conditions of service) repeal act 1953 is her£'by repealed  statement of objects and reasonsarticle 148 (3) of the constitution provides that the salary and other conditions 'of :;ervicl' of the comptroller and auditor-general shall be such :{s may be determined by law and until sol determined, shall be as specified in the second schetiule to the constitution further, article 149 of the constitution j'jys down that the comptroller and auditor-general shall perform ~u('h duties and exercise such powers in relatiol) to the acc"ounts of the union and of thf' states and of any other authority or body as may be prescribed by ar under any law made by parli~ment anti until so prescribed, shall perform such duties ond exercise such powers in relation to the accounts of the union and of the states as were conferred on or exercisable by the auditor-general of india immediately before the commencement m the constitution the conditions of service of the comptroller and auditor-general are at present governed by three separate sets of provisions, namely, pamgraph 12 of the second schedule to the constitution which refers to' salary and rights in respect of leave of absence and other con'ditions of service; the comptroller and auditor-general (conditions of service) act, 1953 which regulates the term of office of the comptroller and auditor-general and his pensionary entitlements; end the government of india (audit and accounts) order, 1936 made under section 166 of the government of india act, 1935 which continues to be in force in so far as the other conditions of service !:ire co'llcerned (mostly l~ave of absence and travelling allowance) the duties and powers of the comptroller and auditor-general in re'lation to the accounts of the union and of the states continue to be governeti by the provision~ of the government of india (audit and accounts) order, 1936, which remains in force in view of the provisions of article 149 of the constitution the' bill seeks to provide comprehensively for the conditions of service and duties and powers of the comptroller and auditor-general in replacement of the various provisions in thic; regard as referred to above whpe it broadly follows the existing provisions both in respect of conditi11ns of service and t3uties and powers, it makes certain modiflntions as indicated below:- (a) conditions of service(i) pension,-the bill provides that a person who, immediately before assuming office as comptroller and auditor-general, was in th~ service of government, sh911 be deemed to have retired from his previous service on the date on which he enters 1100n office as the comptroller nnd auditnr-glmeral, but fot" 'purposes of pension service as comptroller i'md a\l";1nr-g~'neri'l1 will he ('onntf'd as approv~ servir(" in the se-rvl('p to which he belonged on demitting office, the comptl'oller and audito!"-general will be ehgibl~ to pension under the rules of the sej'vice to which he belonged and in addition, to an additional pension of rs 600 per annum for each completed year of service as comptro!ier and auditur-general, subject to a maximwn of rs 13,33j33 (equivalent of £1,000 at the predevaluation rate of £l=ks 13::j3), mc!uslve ot the penslon equivalent 01 death-cum-retirement gratuity this is a slight modlfication 01 the existing provision which did not provide for the penslull equivalent of deathcum-retirement gratuity bemg included in the ceiling funnel' tile same maximum limit wih be applicable in future to au comptrollers and auditors-general appointed from any of the established services irrespective vi the service to which they belonged belore their appomtment 'fnis will not affect the present incumbent whose existing conditions of service are protected by the provisions of the constitution (ii) otil£t condttion,s of se·rvice-the bill extends the beneht of the civil pensions (commutation) rules tu the comptroller and autiitor-genel'al, and also provides that the other conditions of service of the comptroller and auditor-general shall be determined by the rules applicable to a member 01 the indian adnunistrative sen'ice holding the rank of a secretary to the government of indj,l,  (b) duties and ]-'owe1',s(i) the bill provides for audit by the comptrolier and auditor-general of all expenditure from the consolid\1ted l<~und of india, of each state and of each union territory having a legislative assembly and also of all transactions relating to the contingency !"unds and public accou,nts i i (i) the bill provides for audit by the comptroller dnd auditor-ueneral of bddies or \1uthorities financed entirely by grants or loan from the consolidated fund of india or ofa state or of a union territory having a legislative assembly (iii) the bill provides for scrutiny by the comptroller and auditor-general of the procedures by which an authority sanctioning a grant or a loan to any body or authority satisfies itself as to the fulfilment of the condition subject to which the grant or loan was given and for this purpose gives him the right of access to the books of the body or authority, with certain exceptions (iv) the bill provides for the audit by the comptroller anti auditor-general of all receipts which are payable into the the consolidated fund , of india or of a state or of a union territory having a legislative assembly and to satisfy himself that the rules and procedures are designed to secure an effective check on assessment, collections etc and to report thereon (v) the bill provides that the comptroller and aututor-general shall if so requested by the president or the govrnor of a state or the administrator of a union territory, as the case may be undertake the audit of the accounts of any authority or body not otherwise entrusted to him by or udder any law made by parliament such request will be required to be made in public interest and after consultation with the comptroller anti auditor-general and efter giving a reasonable opportunity to the body or authority for making representations with regard to the proposal for audit by the comptroller and auditor-general the comptroller and auditor-general may also propose to the president or the governor of a state or the administrator of a union territory having a legislative assembly, that he may be authorised to undertake the audit of any body or authority not entrusted to him the notes on clauses appended to the bill explain the other provisions of the bill new d'lhij morarji desai the 9th may, 1969 clause 2-this clause seeks to insert certain definitions which are! largely based on the m~anings assigned to them in the government of  adia (audit and accounts) order, 1936 which continues to govern me duties and powers of the comptroller and auditor-general in terms of article 149 of the constitution clause 3-the provision regarding the payment of salary at the rate of four thousand rupees per mensem is the same as paragraph 12 (1) in part e of the second schedule to the constitution the provision relating to reduction from salary of pension, other than a disability or wound pension, drawn, if any, by the comptroller and auditor-general is analogous to paragraph 9 of part d of the second schedule to the constitution, applicable in the case of judges of the supreme court clause 4-this clause provides that the comptroller and auditor-general shall hold office for a term of six years from the date on which he assumes office and corresponds to section 2 of the comptroller and auditor-general (conditions of service) act, 1953 (21 of 1953) clause 5-this clause will enable a comptroller and auditor-general, who was in the service of government before assumption of office, to take leave in accordance with the rules of the service to which he belonged except that consequent on clause 6, it provides for the carry forward of the amount of leave at credit immediately before the date of assumption of office when he will be deemed to have retired from his previous service clause 6-this clause introduces a new provision that a person who, immediately before assuming office as the comptroller and auditor-general was in the service of government, shall be deemed to have retired from his previous service on the date on which he enters upon office as the comptroller and auditor-general but for purposes of pension, service as comptroller and auditor-general will be counted as approved service in the service to which he belonged on demitting office the comptroller and auditor-general will be entitled to pension under the rules applicable to the service to which he belonged and in addition an additional pension of rs 600 per annum for each completed year of service as comptroller and auditor-general subject to a maximum in the aggregate of rs 13,33333 (equivalent of £1,000 at the predevaluation rate of £ l=rs 1333), inclusive of the pension equivalent of deathcum-retirement gratuity this is a slight modification of the existing provision which did not provide for the pension equivalent of death-cumretirement gratuity being included in the ceiling further the same maximum limit will be applicable in future to all auditors general appointed from any of the established services irrespective of the service to which they belonged before their appointment clause 7-this clause seeks to extend the benefit of the civil pensions (commutation) rules to the comptroller and auditor-general  clause b-according to this clause, the comptroller and auditor-general will be entitled to subscribe to the general provident fund (central services)' i clause 9-this clause provides that the other conditions of service of the comptroller and auditor-general ie, those not speclftcauy provided for in the bill, shall be determined by the rules for the time being applicable to a member of the indian administrative service holding the rank of secretary to the government of india and follows the existing provision clause 10-the existing order provides that the comptroller and auditor-general shall be responsible for keeping the accounts of the union and of each state-except the accounts relating to defence and railways the president or the governor, as the case may be, has, however, the authority to relieve the comptroller and auditor-general, after consultation with him, from the responsibility for keeping the accounts of any particular service or department the president may also relieve the comptroller and auditor-general from the responsibility for keeping the accounts of any particular class or character in exercise of these powers the comptroller and auditor-general has been relieved of the responsibility for the maintenance of accounts of certain seleded departments (eg food deptt, rehabilitation deptt, supply de?tt, lok sabha, rajya sabha, etc) the arc after considering the pros and cons of the scheme has recommended that as a general policy the responsibility for maintaining the accounts should continue to vest in the comptroller and auditor-general except where separate accounts offices have already been set up for the purpose clause 10 provides for the maintenance of the status quo with this diiferf'nce that the responsibility vested in the comptroller and auditor-general will be in respect of compiling accounts and keeping them where necessary this clause also gives the president or the governor, as the case may be, the power to l'fwoke any existing arrangement after consultation with the comptroller and auditor-general clause 11-·this clause requires as at present the comptroller and auditor-general to prepare the annual accounts separately for the union and each of the states and union territories having legislative assemblies showing the receipts and disbursements and to submit them to the president, the governor or the administrator, as the case may be in addition, where the accounts are compiled by him he has also to prepare an appropriation account showing the expenditure brought to account against the moneys authorised under the appropriation act and submit the same to the president, the governor or the administrator, as the case may be! ! clauae l2-this clause casts a duty on the comptroller and auditor-general to furnish such information to the union government or the state governments or governments of union territories having legislative assemblies as required and as could be gathered from the accounts for the compilation or keeping of which he is responsible, and is based on the existing arrangementj clause l3-this clause provides that the comptroller and auditor-general will audit all expenditure from the consolidated fund of india and of each state and of each union territory having a legislative aiiembly, au transactions relating to the contingency funds and public accounts and all trading, manufacturing and profit and loss accounts and follows the existing provisions clause 14-this is a new provision which provides for audit by the comptroller and auditor-general of expenditure of bodies or authorities financed entirely by grants or loans out of the consolidated fund of india or of a state or of a union territory having a legislative assembly clause i5-this clause requires the comptroller and auditor-general to scrutinise the procedures by which any authority sanctioning a grant or a loan from the consolidated fund of india or of any state or of a union territory having a legislative assembly to any authority or body other than a foreign state or international organisation satisfle~ itself ar to the fulftlment of the conditions subject to which the grant or loan was given for this purpose the comptroller and auditor-general will have right of access after giving reasonable previous notice, to the' books and accounts of the authority or body but in so far as a corporation established by law is concerned if the law establishing the corporation provides for the audit of its accounts by an agency other than the comptroller and auditor-general, he will not have right of access to its books and accounts unless he is so authorised by the president, the governor of a state or the administrator of a union territory, after consultntion with the comptroller 'and auditor-general and after givin~ an opportunity to the concerne'd corporation to make any representation with regard to such authorisation provision has also been made to empower the president, the governor or the administrator as the case mny be, to relieve the comptroller and auditor-general from the responsibility of the scrutiny provided for in this clause in public interest nnd after consultation with the' comptroller and auditor-general cta~e l6-under the existing arrangements audit of receipts can he taken up by the comptroller and auditor-general with the approval of or if required by the president or governor this clause empowers the comptroller and auditor-general to audit all receipts which are payable into the respective consolidated funds and to satisfy himself that the rules and procedures are designed to secure an effective check on assessment, collections, etc  and to report thereon as recommended by the administrative reform~ commission and· as envisaged in article 151 of the constitution i clause 17-this clause vests the comptroller and auditor-general with authority to audit the accounts of stores and stocks and to report thereon under the existing arrangements he can do so with the approval of or if so required by the president or the governor as the case may bf' clause 18 (1) (a) (b) & (e) ,-these sub-clauses give to the comptroller and auditor-general the authority which he even now has in respect of inspection of any office of accounts and production of documents for his inspection and also to put questions and make observations which he may consider necessary and to call for such information as he may require for the preparation of his reports clause 18 (2) -this is a new provision which requires the accounts offices inspected or audited by the comptroller and auditor-general to afford all facilities for such inspection or audit and to comply with requests for information clauc:e 19-this clause provides for the oonduct of audit by the comptroller and auditor-general of government oompanies in accoroanee with the provi~ions of the companies act, 1956 and of corporations established by law in accordance with the provisions of the respective statutes establishing the corporation where, however, a corporation has been established by law made by a state or a union territory legislature the comptroller and auditor-general will audit the accounts of the corporation, if so requested by the governor of the state or the administrator of the union territory as the case may be, in public interest and after consultation with the comptroller and auditor-general and after giving a reasonable opportunity to the corporation to make representations with regard to the proposal for such audit state or union territory laws cannot provide for such audit as the comptroller and auditor-general;s duties and powers are required to be regulated by an act of parliament under article 149 of the constitution and hence this 'provision clause 20-this is an enabling provision under this clause the comptroller and auditor-general will at the request of the president or the governor of a s'tate or the administrator of a union territory, as the case may be, undertake the audit of the accounts of any authority or body not otherwise, entrusted to him by or under any law made by parhament such audit will be entrusted to the comptroller and auditor-general only in public interest and after giving a reasonable opportunity to the concerned body or authority to make representations with regard to the proposal for such audit this is a new provision which gives statutory recognition to what is known commonly ar 'col\,"nt" audit this clause also provides that the comptroller and auditor-general may propose to the president the governor of a state or the administrator of a union territory that he may be authorised to undertake audit of any body or authority not entrusted to him clause 21-this clau"e provides for the delegation by the comptroller and auditor-general to any officer of his department of the powers exercisable by him except in the matter of submission of audit report and follows the existing arrangement cliause 22-this clause provides the usual authority to the central government after consultation with the comptroller and auditor-general for framing rules in the matter of maintenance of government accounts the rules will be laid before both houses of parliament clause 23-this is a new provision enabling the comptroller and auditor-general to make regulation!': in regard to the extent and rcope of "auditj \ clause 24-this clause gives statutory authority to the comptrollpr and auditor-generrl to di!';penrp with thp rlptailen i'\udit of any accounts pr c'la"r of transllctions, und~r clause 3 of the bill, the comptroller and auditor-general shall be paid salary at the rate of rs 4,000 per mont,b subjec:t to' appropriate r~u«:tion in the cqse of persons in receipt of pension separately the expenditure (charged) on this account would be rs 4l1,ooo per anuulu sub-clause (1) of clause 6 of the bill provides that a person wh", immediately before the date of assuming oflice as comptroller and auditor-general, was in the service of government shall be eligible to such pension as may be admissible to him un~er the rules for the tim~ !leing applicable to the service to which he belonged, his service as comptroller and auditor-general being reckoned for purpaaes of those nt1es as continuing approved service counting for pension in the service to which he belonged and in addition, to a pension of rs 600 per annum m respect of each c-ompleted year of service as comptroller and auditor-=jenera! under sub-clause (2) of clause 6 of the bill a per90n who imme'diately oefore the ciete of assuming office as comptroller and auditor-general "'as in receipt of, or was eligible for, pension in respect of any previaus s~rvice under government, shall on demitting office as comptroller and auditor-general be eligible to an additional pension of rs 600 per annum in respect of each completed year of service as comptroller and auditor-general any other pers~n who is appointed as comptroller anu auditor-general will, under the provisions of sub-clause (3) of clause 6 of the bill, be eligible on retirement to such pension, as t~e president may by order determine in all the three cases mentioned above, the aggregate amount <1f pension inclusive of the additional pe9sion, commuted portion, if any, of pension and pension equivalent of retirement gratuity, if any, will not exceed rs 13,33333 per annum under clause 9 of the bill the travelling allowance qf the comptroller and auditor-general while travelling on \:iuty shali be determined by the rules for the time being applicable to a member of the indian administrative service holding the rank of secretary to the government of india the annual expenditure (charged) ad this account will be of the order of rs 15,000 the duties and powers of the comptroller and auditor-general in relation to the accounts of the union, of the states and of the umon territories having legislative assemblies and of other authorities or bodies including keeping and compiling of accounts and audit of receipts and ex-penditure are provided for in clauses 10 to 20 of the bill most of theseduties and powers are 'being discharged or exercised, as the case may be, by the comptroller and auditor-general even now clause 21 of the bill provides that any power exercisable by the c~m­ptroller and auditor-general may be exercised by such officer of his department (the lndian audit and accounts department) as may be authorised by him the expenditure on this department during 196970, (for which provision has been made in the budget for 1969-70), is estimated to be of the order of rs: 2593 crores, (which includes charged expenaj·· ture of rs 4765 lakhs), of which rs 580 crores is recoverable from railways, posts and telegraphs and other departments or bodies whose accounts are maintained or audited, or both, by the comptroller and auditor-general in addition a non-recurring provision of rs 1 crore has also been made for buildings with expanding activities of government, both central and state, the work of the comptroller and auditor-general will also increase, leading to increase in staff it is difficult however at this stage to indicate precisely the likely expenditure on the additional staff that might be required but the annual increase in expenditure due ttl expansion, normal increments etc: is expected' to be of the order of ~ per cent ~iause 7 of the bill empowers the president to make- such adalltations in the civil pensions (commutation) rules as may be necessary this is a matter which can hardly be provided in the act the delegation is, therefore, of a normal character sub-clause (1) of clause 22 of the bill provides that the central government may, after consultation with the comptroller and auditor-general, by notification in the official gazette, make rules for carrying out the purposes of the bill in so far as they relate to the maintenance of accounts the matters which may be provided ·for in the rules have been specified in sub-clause (2) they, inter alia, relate to the manner in which initial and subsidiary accounts shall be kept by treasuries, oftlces and departments rendering accounts to the audit and accounts oftlces; the manner in which the accounts for the compiling and keeping of which the comptroller and auditor-general has been relieved of the responsibility, shall be compiled or kept and the manner in which the accounts of stores and stock shall be kept in any office or department under sub-clause (3) of clause 22, the rules will be subject to the scrutiny of parliament these are matters of procedure and administrative detail and it is hardly practicable to provide for them in the bill itself the delegation is, thus, of a normal character clause 23 of the bill authorises the comptroller and auditor-general to make regulations for carrying into effect the provisions of the bill in so far as they relate to 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 since these regulations would be in the nature of departmental instructions by the comptroller and auditor-general or instructions for the guidance of government department, the delegation is of a normal character a lull to detennine the conditions of service of ethe comptroller andl awlitol'-gencral of india abd to prescribe his duties and powers and]fortmatters];connected :therewith or incidental thereto (shri morarji desai,   deputy             prime minister and   minister of finance) 