Crucial verdict: Delhi HC lets CAG audit private telecom firms

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Crucial verdict: Delhi HC lets CAG audit private telecom firms
New Delhi, Jan 6: In a crucial verdict, Delhi High Court on Monday let the Comptroller and Auditor General of India (CAG) audit private telecom companies.

Under the revenue sharing agreement between the department of telecom and private companies, the telecom companies provide Indian exchequer between Rs 15,000 crore and Rs 20,000 crore annually.

The agreement says that DoT has the power to appoint special auditors of its choice to look into the books of accounts of these private firms. Al thoughover the past many years, CAG has been writing to DoT asking it to nominate the federal auditor to look into private telecom companies' books, DoT has not responded to CAG request.

Delhi CM Arvind Kejriwal had asked CAG to audit power distribution firms

 

The CAG had been repeatedly asking DoT, citing the CAG Act 1971 which says that it is duty bound to audit accounts of the Union and those "in relation to accounts of the Union."

In 2009, when CAG made unilateral efforts at auditing the revenues of private telecom players, they moved the Delhi High Court. The petitioners in the case are Cellular Operators Association of India (COAI) and Association of Unified Telecom Service Providers (AUSPI). In the petroleum sector the government has nominated CAG to audit the RIL's KG Basin operations.

Recently, Delhi chief minister Arvind Kejriwal had asked CAG to audit power distribution companies.

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