The Comptroller and Auditor General (CAG) has not followed its mandate under the Constitution, the government said on Friday.
The government also said the auditor's report on coal blocks, tabled in Parliament, would be considered final only after it was examined by the Public Accounts Committee (PAC).
The CAG report on allocation of coal blocks has pegged loss to the exchequer as on March 11, 2012, at a whopping Rs 1.86 lakh crore ($37 billion).
Minister of State in the Prime Minister's Office V. Narayanasamy said he would not like to go into the merits of the report.
He said submission of "draft report" was "not going to give a message".
"Unfortunately, CAG has a certain mandate under the constitution. According to me, CAG is not following the mandate...," Narayanasamy said.
According to the minister, the reports would go to the PAC, comprising members from various political parties and headed by a member from the main opposition party.
Narayanasamy said the PAC was like a "mini parliament" and would submit its report to parliament.
"Then alone action can be taken by the government. Then only (it) becomes final," he said.
He said the "draft report" had been prepared on the basis of certain documents "which they think is their view".
Besides the report on allocation of coal blocks, the CAG's reports on ultra mega projects and the Indira Gandhi International Airport were also tabled in Parliament Friday.