Which among the following statements with respect to the Comptroller and Auditor General of India is/are correct ? I. The procedui-e and grounds for his removal from the office are the same as of a Judge of Supreme Court. II. He prescribes the form in which accounts of the Union and the States are to be kept. Select the correct answer using the code given below

1. Independent Constitutional Bodies: Guardians of the Democratic System (basic)

In a healthy democracy, power shouldn't be concentrated in a single hand. While the Executive (the government) is responsible for running the country, the Indian Constitution establishes certain independent constitutional bodies to act as "watchdogs." These bodies ensure that the government remains accountable to the people and follows the rule of law. Think of them as the referees of a football match—they aren't part of either team, but they ensure the game is played fairly according to the rules.

A Constitutional Body is one that is directly created by the Constitution of India. This means their powers, composition, and functions are explicitly written in the Articles of the Constitution itself. For example, while the UPSC and State Public Service Commissions (SPSC) are constitutional bodies because they are created directly by Articles 315-323, a Joint State Public Service Commission is only a "statutory body" because it is created by an Act of Parliament rather than the Constitution itself Indian Polity, State Public Service Commission, p.430.

To ensure these "referees" can work without fear or favor from the government of the day, the Constitution provides them with specific safeguards. For the Comptroller and Auditor General (CAG), these safeguards are extremely high. Under Article 148(1), the CAG cannot be removed from office easily; they can only be removed in the same manner and on the same grounds as a Judge of the Supreme Court. This requires a "special majority" in both Houses of Parliament on the grounds of proved misbehaviour or incapacity. This high threshold ensures the CAG can audit government spending independently, without worrying about being fired for exposing a scam.

Feature	Constitutional Body (e.g., CAG, UPSC)	Statutory Body (e.g., NHRC, SEBI)
Source of Power	Derived directly from the Constitution of India.	Derived from a specific Law (Statute) passed by Parliament.
Amendment	Requires a Constitutional Amendment to change its core nature.	Can be changed or abolished by a simple Law passed by Parliament.
Independence	Usually enjoys higher security of tenure and salary safeguards.	Independence levels vary based on the specific Act.

Furthermore, under Article 150, the CAG has the authority to prescribe how the accounts of the Union and the States should be kept. While the President technically issues the order, it is mandatory for the President to follow the advice of the CAG on this matter. This ensures that the "accounting language" used across India is uniform and transparent Indian Constitution at Work, Constitution: Why and How?, p.22.

Sources: Indian Polity, State Public Service Commission, p.430; Indian Constitution at Work, Constitution: Why and How?, p.22

2. Ensuring Independence: Security of Tenure and Service Conditions (intermediate)

To ensure that the Comptroller and Auditor General (CAG) can act as a fearless watchdog of the public purse, the Constitution provides a robust "fortress" of independence. The most critical pillar of this independence is Security of Tenure. Although the CAG is appointed by the President, they do not serve at the "pleasure" of the President. Instead, according to Article 148(1), the CAG can only be removed from office in the same manner and on the same grounds as a Judge of the Supreme Court Indian Polity, M. Laxmikanth (7th ed.), Comptroller and Auditor General of India, p.444. This means removal requires a special majority in both Houses of Parliament on the grounds of proved misbehaviour or incapacity.

Beyond tenure, the Constitution prevents any "quid pro quo" or future influence by the Executive through a strict post-retirement ban. Once a CAG vacates their office, they are ineligible for further office under either the Government of India or any State government. This ensures that the CAG is not tempted to produce "favorable" audit reports in exchange for a lucrative post-retirement role Indian Polity, M. Laxmikanth (7th ed.), Comptroller and Auditor General of India, p.444.

Furthermore, the CAG possesses a unique constitutional power regarding the format of accounting. Under Article 150, the CAG advises the President on the form in which the accounts of the Union and the States shall be kept. While the President officially makes the order, it is done only after receiving the prescription from the CAG. This ensures a uniform and transparent accounting standard across the entire country, which is vital for a clear audit trail. This power, combined with the fact that their administrative expenses are charged on the Consolidated Fund of India (meaning they are not subject to a vote in Parliament), solidifies their status as an independent constitutional authority.

Feature	Constitutional Provision for Independence
Removal	Same as a Supreme Court Judge (Parliamentary process).
Post-Retirement	Strictly ineligible for any further government office.
Service Conditions	Cannot be varied to their disadvantage after appointment.
Prescribing Accounts	President acts on the mandatory advice of the CAG (Art. 150).

Sources: Indian Polity, M. Laxmikanth (7th ed.), Comptroller and Auditor General of India, p.444-445

3. Financial Accountability Framework: The Three Funds of India (basic)

In a parliamentary democracy, the government cannot spend a single rupee of the taxpayers' money without the oversight of the people's representatives. To ensure this financial discipline, the Constitution of India organizes all government money into three distinct buckets, each governed by specific rules of access and accountability. Understanding these is the first step to seeing how the CAG acts as a watchdog over the nation's purse.

The first and most important is the Consolidated Fund of India (Article 266). Imagine this as the government's main bank account. Every bit of revenue (income tax, GST, customs), all loans raised by the government, and all repayments of loans made to the government flow into this fund Indian Polity, M. Laxmikanth, Parliament, p.256. Crucially, the government cannot take money out of this fund to spend unless Parliament passes an Appropriation Act. This is why we say the legislature holds the 'power of the purse'.

The other two funds serve different functional needs:

• Public Account of India (Article 266): This contains money that doesn't actually 'belong' to the government but is held by it in trust. Examples include Provident Fund (PF) deposits, judicial deposits, and small savings. Since this is effectively the people's money being returned to them, withdrawals do not require a law from Parliament; they are handled by executive action Introduction to the Constitution of India, D. D. Basu, The Union Legislature, p.261.
• Contingency Fund of India (Article 267): Because Parliament can take time to pass laws, this fund exists for unforeseen emergencies (like a natural disaster). It is placed at the disposal of the President, who can authorize advances to meet urgent expenses. Later, Parliament must 'top it up' or recoup the amount from the Consolidated Fund.

Feature	Consolidated Fund	Public Account	Contingency Fund
Article	266(1)	266(2)	267
Nature	All revenues and loans	Trust money (e.g., PF)	Emergency/Unforeseen
Authorization	Parliamentary Law	Executive Action	Presidential Advance

A vital nuance for your CAG studies: In India, the CAG is primarily an Auditor. Unlike in Britain, where the CAG must approve the withdrawal of money before it leaves the Consolidated Fund, the Indian CAG usually steps in after the money has been spent to check if it was used legally and wisely Indian Polity, M. Laxmikanth, Comptroller and Auditor General of India, p.447.

Sources: Indian Polity, M. Laxmikanth, Parliament, p.256; Introduction to the Constitution of India, D. D. Basu, The Union Legislature, p.261; Indian Polity, M. Laxmikanth, Comptroller and Auditor General of India, p.447

4. The CAG and the Public Accounts Committee (PAC) (intermediate)

In our journey to understand the Comptroller and Auditor General (CAG), we must look at how its work actually reaches the heart of Indian democracy: the Parliament. While the CAG conducts the audit, it does not have the power to penalize officials or enforce corrections directly. Instead, it acts through a vital parliamentary organ known as the Public Accounts Committee (PAC). This relationship is so intimate that the CAG is famously described as the "guide, friend, and philosopher" of the PAC Indian Polity, Parliamentary Committees, p.272.

The process begins when the CAG submits audit reports to the President (for Union accounts) or the Governor (for State accounts) under Article 151. These reports are then laid before the respective legislatures. Since the full Parliament is too large a body to scrutinize every technical detail of government spending, the PAC takes over. The CAG assists the committee by:

• Selecting key areas: Helping the PAC identify the most critical irregularities or "paras" in the audit report for detailed investigation.
• Technical interpretation: Explaining complex accounting jargon and financial nuances to the MPs on the committee.
• Ensuring accountability: Attending PAC meetings to ensure that witnesses (government officials) provide accurate and relevant information regarding the expenditure of public money.

To perform this watchdog role effectively, the Constitution ensures the CAG operates from a position of absolute independence. This is why, under Article 148(1), the CAG can only be removed from office in the same manner and on the same grounds as a Judge of the Supreme Court—requiring a special majority in both Houses of Parliament on grounds of proved misbehaviour or incapacity. Furthermore, the CAG has a unique constitutional say in how financial data is organized; under Article 150, the President of India prescribes the form in which the accounts of the Union and States are kept, but only on the advice of the CAG Indian Polity, World Constitutions, p.699.

Ultimately, as noted by former CAG Ashok Chanda, this partnership ensures the PAC evolves into a powerful force in the control of public expenditure, turning the "dry" audit reports into a mechanism for executive accountability Indian Polity, Parliamentary Committees, p.272.

Sources: Indian Polity, Parliamentary Committees, p.272; Indian Polity, World Constitutions, p.699

5. The Removal Process: 'In like manner and on like grounds' (exam-level)

To ensure that the Comptroller and Auditor General (CAG) can function without fear or favor, the Constitution grants this office a level of security equivalent to that of the highest judiciary. Under Article 148(1), the CAG cannot be removed by the President at will; instead, the removal must happen 'in like manner and on the like grounds as a Judge of the Supreme Court' D.D. Basu, Introduction to the Constitution of India, The Supreme Court, p.342. This means the executive (the government) has no unilateral power to dismiss the CAG, making the office truly independent.

The 'grounds' for removal are strictly limited to two conditions: Proved Misbehaviour or Incapacity. 'Misbehaviour' here implies more than a simple error of judgment; it refers to improper conduct or a sense of mens rea (guilty mind) in the performance of duties D.D. Basu, Introduction to the Constitution of India, The Supreme Court, p.342. On the other hand, the 'manner' refers to a rigorous parliamentary procedure governed by the Judges (Inquiry) Act, 1968 M. Laxmikanth, Indian Polity, High Court, p.355. This process requires a Special Majority in both Houses of Parliament—meaning a majority of the total membership of the House AND a majority of not less than two-thirds of the members present and voting M. Laxmikanth, Indian Polity, Supreme Court, p.287.

The technical steps for removal are designed to be difficult to ensure a broad political consensus is reached before such a high constitutional authority is unseated:

• Initiation: A motion signed by at least 100 members (Lok Sabha) or 50 members (Rajya Sabha) must be submitted to the Speaker/Chairman M. Laxmikanth, Indian Polity, Supreme Court, p.287.
• Investigation: If admitted, a three-member committee (consisting of a Supreme Court judge, a High Court Chief Justice, and a distinguished jurist) investigates the charges M. Laxmikanth, Indian Polity, High Court, p.355.
• Final Act: If the committee finds the CAG guilty, Parliament votes. Only after both Houses pass the motion by a special majority does the President issue the final removal order.

Feature	Removal of CAG
Constitutional Basis	Article 148(1)
Valid Grounds	Proved Misbehaviour or Incapacity
Voting Requirement	Special Majority (Both Houses)
Role of President	Issues final order only after Parliamentary address

Sources: Introduction to the Constitution of India, D. D. Basu (26th ed.), The Supreme Court, p.342; Indian Polity, M. Laxmikanth (7th ed.), Supreme Court, p.287; Indian Polity, M. Laxmikanth (7th ed.), High Court, p.355

6. Articles 149 & 150: Duties, Powers, and Forms of Accounts (exam-level)

To understand the working of the CAG, we must look at the constitutional bridge between its high office and its actual daily functions. While Article 148 establishes the office, Article 149 acts as the 'enabling provision.' It authorizes the Parliament to define the specific duties and powers of the CAG regarding the accounts of the Union, the States, and any other body. This led to the enactment of the CAG’s (Duties, Powers and Conditions of Service) Act, 1971. Under this legal framework, the CAG audits all expenditure from the Consolidated Fund of India, each State, and Union Territories with a Legislative Assembly M. Laxmikanth, Comptroller and Auditor General of India, p.445. Essentially, if public money is spent from these 'wallets,' the CAG is the one checking the receipts.

One of the most technically important powers lies in Article 150, which deals with the 'Form of Accounts.' For a federal country like India, it is vital that the Union and the States maintain their accounts in a uniform manner so they can be compared and consolidated. However, the power to decide this 'format' is a shared responsibility. While the President of India officially prescribes the form, he can only do so on the advice of the CAG. This ensures that the person auditing the books (the CAG) has a say in how those books are written in the first place.

The CAG’s reach also extends to public corporations and government companies, though the intensity of the audit varies. Not every government-linked entity is audited the same way. We can categorize these into three distinct levels of involvement:

Category	Nature of CAG Audit
Direct Audit	The CAG audits the corporation totally and directly (e.g., ONGC, Damodar Valley Corporation).
Supplementary Audit	Private auditors do the main work, but the CAG can conduct a 'second look' or supplementary audit (e.g., Central Warehousing Corporation).
Private Audit Only	The CAG has no role; the audit is done entirely by private professional auditors who report directly to the shareholders (e.g., LIC, RBI).

M. Laxmikanth, Comptroller and Auditor General of India, p.447

Sources: M. Laxmikanth, Comptroller and Auditor General of India, p.444-447

7. Solving the Original PYQ (exam-level)

This question bridges two fundamental pillars of the Indian Constitution: Constitutional Independence and Financial Oversight. Having just mastered the structure of Constitutional Bodies, you can see how Article 148 and Article 150 are synthesized here. Statement I tests your understanding of security of tenure. By equating the CAG's removal process to that of a Supreme Court Judge, the Constitution ensures that the 'Guardian of the Public Purse' is shielded from executive pressure, requiring a special majority in Parliament for removal—a concept you previously encountered in our study of the Judiciary.

To arrive at the correct answer, look closely at the functional authority of the office. Statement II reflects the CAG's role as the architect of India's accounting standards. While Article 150 mentions that the President 'prescribes' the form, he does so strictly on the advice of the CAG. In the language of UPSC, the CAG is the substantive authority behind these forms for both the Union and the States. Therefore, both statements are constitutionally sound, leading us to (C) Both I and II. This reflects the dual nature of the office: it is both an independent watchdog and a technical regulator.

UPSC often sets traps by using partial truths or confusing similar offices. A common mistake is to assume the CAG serves at the pleasure of the President (like the Attorney General), which would make Statement I incorrect. Another trap is doubting Statement II because the President is the formal signatory; however, as noted in Indian Polity by M. Laxmikanth, the advice of the CAG is mandatory and binding in this specific administrative capacity. Always look for the intent of the constitutional provision—which is to centralize and standardize financial reporting across the federation.