Former Indian Audit and Accounts Service (IAAS) officer, P. Sesh Kumar, who spent significant time in the Comptroller and Auditor General (CAG), has penned two books about his experience, giving us a rare insider’s look into the working of the constitutional watchdog, an institution often in the news but seldom understood beyond its headline-making reports.
Kumar combines professional insight with candid reflections on the strengths and shortcomings of India’s top audit body. The first book, titled 'CAG – An Inside View'; and the second one, 'CAG - What it ought to be auditing', published by White Falcon Publishing, give a comprehensive overview of the auditing body, its process, its working, and his take on some of the key controversies.
The first book devotes considerable space to two of the most controversial episodes in recent memory—the CAG’s reports on the allocation of 2G spectrum and coal blocks. In the 2G case, the audit famously estimated “presumptive losses” of up to Rs 1.76 lakh crore, a figure that triggered political storms and court action.
Kumar says that the “presumptive loss” was not a recognised audit term, and reliance on 3G auction benchmarks and private equity valuations introduced subjectivity, while media and political parties amplified the highest figure.
Kumar acknowledges the flaws in methodology, particularly the reliance on extrapolated valuations, but argues that the report’s real impact lay in exposing arbitrary allocation practices. The Supreme Court’s cancellation of 122 licences and the subsequent shift to auctions, which yielded higher revenues, underscored the need for reform.
The coal allocation report, prepared under similar constraints and with incomplete access to files, also pointed to windfall gains for private players. Here too, Kumar notes the methodological difficulties but defends the audit’s role in prompting a more transparent, auction-based system.
The books are not limited to high-profile scams. Kumar recounts lighter episodes, such as an objection over the purchase of better-quality towels for a government guest house, flagging a loss of ₹2,500. The larger context that the towels were for senior officials and foreign dignitaries was ignored. “Loss is a loss, even if it’s over towels,” quipped the audit.
In another case, auditors flagged a “costly” paint job for helicopters without realising it was radar-resistant stealth coating, essential for national security. These anecdotes also highlight the difficulties of striking a balance between financial propriety and functional needs.
The books also draws attention to institutional challenges, the reluctance of ministries to part with records, delays in responses, and attempts to sidestep scrutiny. Kumar cites one striking example from 2020, when officials informally suggested adjusting fiscal reporting to boost revenues during the pandemic, with the hope that the CAG would not raise queries. He situates these episodes in the larger debate over the scope of the CAG’s mandate, recalling how the Supreme Court, only in 2012 confirmed its right to conduct performance audits.
Kumar does not shy away from pointing out missed opportunities, such as the CAG’s limited examination of demonetisation. At the same time, he makes a case for innovative performance audits in areas like wildlife conservation and even the justice delivery system, where inefficiency carries huge social and economic costs.
Politicians’ responses to audit reports, the book shows, have often been opportunistic, welcoming findings when in Opposition, questioning them when in power. From the BJP’s embrace of CAG reports during the UPA years, Kumar charts how political reactions have shifted with circumstances.
The first book is written in a clear, accessible style, even those not well-versed with accounting jargon may find it easy to understand. It is part memoir, part institutional history, and part commentary on governance. The discussion of the 2G and coal block reports is especially valuable, presenting both the limitations of audit methodology and the undeniable impact of those reports in reforming policy.
The second book is for professionals who want deeper insight into the working of the audit process and the way forward. Kumar makes a case for why the CAG remains central to India’s democratic accountability. These books are a valuable addition to literature on CAG, giving a peek into some of the most controversial reports that led to huge furore. The students, researchers, political scientists, auditors, and historians will find these books particularly readable because of their content.
CAG - An Inside View
White Falcon Publishing
pages 218
Rs 799
Second book
CAG - What it ought to be auditing?
White Falcon Publishing
Pages 571
Rs 899