Former CAG Vinod Rai has stressed that there is a need for selection of CAG under a collegium system on the lines of the selection process employed for Election Commissioners, Information Commissioners and Vigilance Commissioners. This will ensure transparency in the selection process, according to him. He also stated that the powers of the CAG are substantial and sufficient for performance of duties.
The current system for selecting the CAG is opaque. It is an entirely internal process, where some names reach the Prime Minister, who chooses one amongst them and recommends it to the President, who makes the appointment. There is no prescribed process for selection or fixed job description or necessary criteria to determine eligibility.
The SC is currently hearing a PIL challenging the appointment of Shashi Kant Sharma as the CAG, and asking the Court to frame guidelines for selection of the CAG. The Centre has, however, refused to change the selection process, stating that it was the domain of the executive and not the judiciary.