In a blow to the AAP government and Delhi CM Arvind Kejriwal, the Delhi HC has ruled that the Comptroller and Auditor General of India (CAG) has no power to audit the accounts of power companies, said ANI.

The HC has allowed pleas from three private discoms which had challenged the AAP government's decision to get their accounts audited by the CAG.

In August, in an indictment of the three private power distribution companies in the national capital, the CAG had found them inflating dues from consumers to the tune of a whopping Rs 8,000 crore besides a range of other irregularities including suppressing revenue.

In its draft report into financial condition of the three private companies, the CAG said the firms BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) backed by Reliance Infra and Tata Power Delhi Distribution Ltd inflated their previously-incurred losses.

These companies have been pressing Delhi Electricity Regulatory Commission to allow them to recover the "regulatory assets".

Later, Delhi Chief Minister Arvind Kerjriwal had urged Prime Minister Narendra Modi to intervene and allow cancellation of agreements with power companies, saying they are selling electricity at higher rates.

Related Read: Allow cancellation of agreements with power discoms: CM Kejriwal to PM Modi

The AAP government had first sought to hand over audit of discoms to the CAG during its 49-day stint in the Delhi government in 2014.