UPSC, State PSCs and the Comptroller and Auditor General

Constitutional bodies – what makes them special

Constitutional bodies are created directly by the Constitution, and their composition, independence and functions are protected by it. They cannot be abolished or have their basic features altered without a constitutional amendment. This lesson covers two pillars of good governance: the Public Service Commissions, which recruit a merit-based civil service, and the Comptroller and Auditor General (CAG), the guardian of the public purse.

Union Public Service Commission (Articles 315–323, Part XIV)

Origins: the GoI Act 1919 provided for a Public Service Commission; the Central Public Service Commission was set up in 1926 on the Lee Commission's (1924) recommendation, chaired by Sir Ross Barker. The GoI Act 1935 created the Federal Public Service Commission, which became the UPSC on 26 January 1950.

Composition: a chairman and other members appointed by the President; the Constitution does not fix the number (it is usually 9–11 including the chairman). Half the members must have held office for at least ten years under the Government of India or a state government. The President determines conditions of service.

Term: six years or until 65 years of age, whichever is earlier. Members may resign by writing to the President.

Removal (Article 317): the President can remove the chairman or a member on grounds of misbehaviour, but only after a reference to the Supreme Court, which must inquire and advise removal – the advice is binding. The President can suspend the person during the inquiry. The President can also remove a member who is adjudged insolvent, engages in paid employment outside the office, or is unfit due to infirmity of mind or body. "Misbehaviour" includes being concerned or interested in any government contract or sharing in its profits.

Independence safeguards: removal only as above; conditions of service cannot be varied to disadvantage; expenses charged on the Consolidated Fund of India; after office, the chairman is not eligible for further employment under the Government of India or a state (except that he cannot be re-appointed either); a member can become chairman of the UPSC or of a State PSC but not any other government job; and the chairman or a member cannot be re-appointed for a second term.

Functions (Article 320): conducts examinations for appointments to all-India services, central services and public services of UTs; assists states in joint recruitment if requested by two or more states; serves the needs of a state on the Governor's request with the President's approval; and is consulted on: methods of recruitment; principles of appointments, promotions and transfers; disciplinary matters affecting civil servants; claims for legal expenses and for injury pensions; and temporary appointments over a year.

The role is advisory – the government is not bound to accept the UPSC's advice, but must explain non-acceptance; the UPSC's annual report is laid before Parliament with a memorandum explaining cases where its advice was not accepted, which must be approved by the Appointments Committee of the Cabinet. Its advice is not sought on reservations for backward classes and on certain posts or services excluded by regulations. In Indra Sawhney (1992) the Court noted that reservation policy is outside its domain.

Limitations: it is concerned with recruitment, not with classification of services, pay, cadre management or training. The emergence of the Central Vigilance Commission has reduced its role in disciplinary matters (the government consults both).

State Public Service Commissions

Article 315 provides for a State PSC for each state; two or more states may agree to have a Joint State PSC (JSPSC) created by Parliament on their request (the chairman and members appointed by the President). The State PSC chairman and members are appointed by the Governor, but can be removed only by the President in the same manner as UPSC members. Term: six years or 62 years of age. On retirement, the chairman can become chairman or a member of the UPSC or chairman of another State PSC; a member can become chairman or member of the UPSC or chairman of a State PSC.

Recent concerns – paper leaks and delays in state recruitment examinations – led Parliament to enact the Public Examinations (Prevention of Unfair Means) Act, 2024, which applies to examinations of the UPSC, SSC, railway boards, banking recruitment bodies, NTA and central ministries, with punishments of three to ten years and fines up to ₹1 crore for organised leaks.

Comptroller and Auditor General (Articles 148–151)

Dr Ambedkar called the CAG "the most important officer under the Constitution of India" – the guardian of the public purse, who controls the entire financial system of the country at both Union and state levels.

Appointment and tenure: appointed by the President by warrant; term of six years or until 65 years, whichever is earlier. Removal in the same manner as a Supreme Court judge (special majority of both Houses on proved misbehaviour or incapacity). The CAG can resign by writing to the President. Salary equal to a Supreme Court judge; salaries and administrative expenses of the office (including staff) are charged on the Consolidated Fund. After ceasing to hold office, the CAG is not eligible for further office under the Government of India or any state. The CAG is not a member of the executive, and no minister can represent the CAG in Parliament.

Duties and powers – under Article 149 and the CAG (Duties, Powers and Conditions of Service) Act, 1971:

• Audits accounts related to all expenditure from the Consolidated Fund of India, each state and each UT with a legislature; and from the Contingency Funds and Public Accounts.
• Audits all trading, manufacturing, profit-and-loss accounts and balance sheets kept by government departments.
• Audits receipts and expenditure of bodies substantially financed from Union or state revenues, government companies, and other corporations and bodies when required by their laws.
• Audits accounts of any other authority when requested by the President or Governor (e.g. local bodies).
• Advises the President on the form in which the accounts of the Centre and states are to be kept (Article 150).
• Ascertains and certifies the net proceeds of any tax or duty.
• Submits audit reports relating to the Centre to the President, who lays them before Parliament; and those relating to states to the Governor (Article 151).
• Acts as a guide, friend and philosopher of the Public Accounts Committee.

The CAG submits three kinds of audit reports to the President: on appropriation accounts, on finance accounts, and on public undertakings.

Types of audit: legal and regulatory audit (obligatory – whether money was spent as authorised), and propriety audit (discretionary – whether expenditure was wise, faithful and economical). The CAG increasingly does performance audits. Landmark reports include the 2G spectrum allocation (2010), with a presumptive loss estimate of ₹1.76 lakh crore, and coal block allocation (2012), which triggered major political debate and Supreme Court action (though the 2G criminal trial ended in acquittals in 2017).

Limitations: the CAG has no control over the issue of money from the Consolidated Fund (unlike the British Comptroller and Auditor General, who has both control and audit functions); after 1976, accounting was separated from audit at the Centre (departmentalisation of accounts), so the CAG now only audits Union accounts. Secret service expenditure is examined on a certificate from the competent authority. Concerns also include delays in tabling of state audit reports and in Public Accounts Committee follow-up.

Common traps

• UPSC members: 6 years or 65; State PSC: 6 years or 62.
• State PSC members are appointed by the Governor but removed only by the President.
• Removal of a PSC member for misbehaviour needs a Supreme Court inquiry (Article 317).
• The CAG is removed like a Supreme Court judge; reports on Union accounts go to the President.
• The CAG is not eligible for any further government office after retirement.