Article 322

Article 322 of the Constitution of India vests the President with the exclusive power to appoint the Comptroller and Auditor General (CAG), the nation’s highest constitutional authority for auditing Union and State finances. By fixing a six‑year term—or retirement at age 65, whichever comes first—the provision insulates the CAG from political turnover, ensuring that the audit function can operate with continuity and impartiality. The clause gained renewed public attention after the CAG’s 2022 audit of defence procurement uncovered irregularities estimated at roughly ₹12 trillion, underscoring the office’s role as a watchdog of fiscal probity.

Historical Background

The CAG’s constitutional roots trace back to the Government of India Act 1935, which introduced a central audit office for British India. When the Constitution was adopted on 26 January 1950, Article 322 formalised the CAG as an independent constitutional office, reflecting the framers’ intent to embed financial accountability at the core of the new republic. The subsequent Comptroller and Auditor General Act 1971 expanded the CAG’s remit, granting statutory powers to audit all receipts and expenditures of the Union and the States, as well as bodies substantially financed by the government.

Key Provisions of Article 322

Article 322(1) states that “the President shall appoint a Comptroller and Auditor General of India” and that the appointment shall be for a term of six years or until the holder attains the age of 65, whichever is earlier. Clause (2) mandates that the CAG shall not be removed from office except by an order of the President after an inquiry by the Supreme Court, mirroring the security of tenure enjoyed by Supreme Court judges. The article also requires the CAG to submit annual reports of the audited accounts to the President, who then lays them before Parliament, thereby creating a direct line of accountability to the legislature.

Mechanism of Appointment, Tenure, and Removal

In practice, the President appoints the CAG after consulting the Prime Minister and, where applicable, the Leader of the Opposition, though the Constitution does not prescribe a formal selection committee. Once appointed, the CAG enjoys a fixed remuneration determined by the Parliament, which cannot be altered during the tenure, further shielding the office from fiscal pressure. Removal is an arduous process: a motion for removal must be presented to the President, who then orders a Supreme Court inquiry; only a finding of proved misbehavior or incapacity can lead to dismissal, a safeguard that has never been invoked since the office’s inception.

Role, Powers, and Institutional Framework

The CAG audits the accounts of the Union and all States, as well as autonomous bodies that receive substantial government funding, amounting to an estimated ₹30 lakh crore of public expenditure annually. Under the 1971 Act, the CAG’s audit reports are examined by the Public Accounts Committee (PAC) of Parliament and the Committee on Public Undertakings, which can summon officials and demand explanations. The office maintains a staff of roughly 2,500 professional auditors and accountants, organized into regional audit circles that conduct field inspections, forensic examinations, and performance audits across ministries, departments, and public sector enterprises.

Current Status and Notable Audits

As of 2024, the incumbent CAG, Rajiv Mehrishi, is serving his term that began on 1 August 2020. The 2022 defence procurement audit, released in February 2022, highlighted procedural lapses and cost overruns in contracts worth about ₹12 trillion, prompting parliamentary debates and calls for tighter procurement norms. Subsequent audits have focused on pandemic‑related spending, where the CAG reported that ₹1.5 trillion of relief funds were disbursed with “significant delays and weak monitoring.” These high‑profile reports have reinforced the CAG’s reputation as a critical instrument of fiscal oversight, influencing policy reforms such as the 2023 amendment to the Public Procurement (Preference to Make in India) Order, which seeks to curb cost inflation in defence contracts.