Telcos contest CAG audit approval in SC

Two associations of telecom companies have filed petitions in the Supreme Court requesting a stay on a Delhi High Court order that mandated audits of operators by the Comptroller and Auditor General (CAG), according to media reports.

The Association of Unified Service Providers (Auspi) and Cellular Operators' Association of India (COAI) have argued in the apex court that auditing private telecom companies is beyond the constitutional scope of the national auditor whose purview is typically public-sector companies, the report said.

The Delhi HC had recently rejected the contention on grounds that the federal auditor had the right to inspect of books of private companies in cases where a national stake exists.

Also read: CAG can audit private telecom companies' accounts: HC

Telecom operators have a licensing agreement with the Department of Telecom and the HC wanted to the CAG to inspect their accounts to check if they had been underreporting revenues to save on license fees.

Telecom companies say they are already subject to audits as prescribed by the Telecom Regulatory Authority of India and feel multiple audits by several agencies hamper efficiency and increase costs.

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