The government could even cancel the licences of the power distribution companies that would not cooperate with the CAG audit, Lieutenant-Governor Najeeb Jung warned on Monday.

Addressing the Delhi Assembly, Mr. Jung said that CAG (the Comptroller & Auditor-General) would carry out an audit of the power distribution companies in Delhi from the time of privatization.

He warned that the licences of the companies that would not cooperate could be cancelled, and stressed that it was an effort to provide people electricity at reasonable rates.

Speaking on the topic, he said, "The government is willing to even consider cancelling the licences of the companies, which do not cooperate with the audit. This is an effort to deliver electricity at reasonable rates, electricity meters will be checked."

The Lieutenant-Governor also said that the government decided to monitor financial transactions made by the private-sector discoms to check any violations of rules.

The CAG audit of power distribution companies comes in wake of AAP's promise to cut the power rates by 50 per cent. However, after the formation of the government, Mr. Kejriwal, who is now the chief minister of Delhi, announced that only those households that would consume up to 400 units would be able to avail the benefits of the scheme. Those who would consume more than 400 units would have to pay the entire bill, without any subsidy.