Published On: Tue, Jan 7th, 2014

CAG may reveal massive scams of telecom companies

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In what may come to be as shocking news for the telecom agencies, the Delhi high court finally permitted comptroller and audit general of India to audit the telecom companies. It has the potential to open up yet another big scandal.

In 2006-2007 and 2007-2008 when five leading telecom companies of India were audited by private auditors appointed by the department of telecommunications, it was found that they understated their revenue by around 10,000 crore in these two years. Therefore DoT had slammed a huge amount as penalty on these telecom companies.

According to the law framed in the regime of NDA government in 1999, the telecom companies need to pay a certain percent of their income to the government and therefore any such understatement of their income has a significant impact on the government revenue.

CAG had been constantly trying to audit the private telecom companies and it had also been asking DoT to appoint it as the auditor. But DoT was reluctant and the telecom companies moved to the high court which finally ruled in the favor of CAG.

Telecom sector is one of the major sources of income for the government and any such irregularity on their part is a great loss to the national income of the country. A fresh audit by CAG will make things clear.

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