Court permits CAG audit of private telecom firms

New Delhi  : The Delhi High Court Monday permitted the Comptroller and Auditor General of India (CAG) to audit the accounts of private telecom operators.

Justice Pradeep Nandrajog and Justice V.K. Rao gave the CAG the go ahead. The auditor had sought revenue sharing details from the companies.

The court direction came on a plea filed by the Cellular Operators Association of India (COAI) and the Association of Unified Telecom Service Providers (AUSPI) saying the CAG had no jurisdiction to audit the accounts of private companies.

The operators had challenged the jurisdiction of the CAG to conduct an audit of their “revenue sharing accounts” with the Department of Telecom (DoT).

The CAG, however, contended that it was duty bound to audit the accounts of the central government and those associated with the central government.