Murthy, an IAS officer of 1989-batch from the Andhra Pradesh cadre, will succeed incumbent G C Murmu, who retires this Thursday (November 21, 2024).

For many, Murthy’s appointment as the next CAG has come as a surprise. He was due to retire in little over a month, but now he will serve for five more years in one of Indian bureaucracy's most coveted positions.

In the notification, a copy of which is with The Secretariat, the government said, “By virtue of the power vested in her (the President) by Clause (1) of Article 148 of the Constitution of India, the President has been pleased to appoint Shri K Sanjay Murthy to be the Comptroller and Auditor General of India with effect from the date he assumes charge of his office.”

Murthy, a soft-spoken engineering graduate, is known as an officer with innovative ideas, and was taken on board as the secretary in charge of the Ministry of Education that among other things dealt with the National Testing Agency (NTA). The NTA came into the news for the wrong reasons, in recent times, after it was found there were issues with the integrity of crucial exams such as NEET-UG for medical college admissions and the UGC-NET exam. 

The 1989-batch IAS officer comes with extensive administrative experience, having served as the I&B secretary and as the MD of the National Industrial Corridor Development Corporation in the Ministry of Commerce and Industry, implementing the government’s ambitious plan to build new industrial towns and cities.

Murthy had also served as additional secretary in the Ministry of Housing and Urban Affairs, overseeing urban transport; the Delhi Development Authority; and the state-run NBCC.

It is to be noted that G C Murmu, a 1985-batch IAS officer of the Gujarat cadre, whom Murthy will replace as the CAG, was appointed CAG in August 2020, after he had served as the Lieutenant-Governor of Jammu and Kashmir. He had succeeded Rajiv Mehrishi, who had earlier served as both the Finance and Home secretaries in the Government of India.

Murmu is a trusted lieutenant of Prime Minister Narendra Modi. He had served in the home department of the Gujarat government when Modi was Chief Minister. Later, he served as Modi’s principal secretary in the state. After Modi became the PM, Murmu moved into the finance ministry, before heading to J&K as L-G, soon after the abrogation of Article 370.

The role of the CAG is pivotal for maintaining transparency and accountability within government finances. Murthy’s extensive experience in public administration positions him well to uphold these responsibilities effectively.

As Murthy steps into this new position, expectations are high for continued diligence in auditing government expenditures. His background suggests he will bring a strong focus on integrity and efficiency to the office, amid growing calls for institutional reforms in the top auditing body.

Murthy’s appointment has been made amid heightened scrutiny over the process of appointing the nation’s top auditor.

The procedure has recently been challenged in the Supreme Court, through a Public Interest Litigation (PIL), which argues that the current system is “not independent, fair and transparent".

A bench led by former Chief Justice of India D Y Chandrachud had issued notices to the Ministries of Law and Justice, and Finance, in response to the PIL filed by Anupam Kulshreshtha and others, seeking reforms in the appointment process.