CAG Convinces HC to Audit Accounts of Private Telecom Companies

Published By : 07 Jan 2014 | Published By : QYRESEARCH

The Delhi High Court has given an official permission to the comptroller and auditor general (CAG) to audit the accounts of all private telecom companies. 

CAG takes pride in receiving this nod from the HC as its most crucial assignment to audit power distribution companies from the famous Arvind Kejriwal led Delhi government.  

CAG has enthusiastically risked certain claims to audit the accounts and revenues in sharing details from different telecom companies. This permit could accrue significant revenues to the government following the high court’s decision.  

In addition, CAG has referred to the Constitution of India and the CAG Act 1971 in seeking its duty to audit the accounts of the Union and those associated with it.  

CAG has the full rights to audit the accounts of the telecom companies and ensure that the claims to receipts that have been posed by them are pursued with attentiveness by the Union, and no further loss due to fraudulent activities or effectiveness of the transactions are maintained henceforth. 

The division bench of Justice V K Rao and Justice Pradeep Nandrajog reserved its order in the month of November 2013. This was earmarked after conducting the marathon hearings about the record submissions of the Centre, the CAG and the petitioners - Cellular Operators Association of India (COAI) and Association of Unified Telecom Service Providers (AUSPI).

Earlier, according to June 2010’s provisional order, HC had instructed the private telecom companies to submit their company’s account details and account log book to the CAG national auditor so that they could run an inspection check on issues such as underreporting of license fees by the companies and more. Nevertheless, the HC’s abstaining instructions led CAG from demanding any sort of additional documents from the companies and instructed them to not divulge the same information to any third party or public resource. However, the CAG was only allowed to inspect the revenue-sharing details of the telecom companies. 

Following to these legal situations, the order was modified by the Supreme Court (SC) which further directed the nationwide telecom firms to hand over their financial reports to the CAG inspection. However, SC still stopped the auditor from inspecting the financial papers till HC made their decision on this case.
Back To Top