Delhi High Court ruled CAG can audit telecom companies

Comptroller and Auditor General can audit the private sector telecom companies, Delhi High Court

Jan 8, 2014 12:00 IST
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The Delhi High Court ruled that the Comptroller and Auditor General (CAG) can audit the books of accounts of private sector telecom companies on 6 January 2014.

The court has ruled that the CAG has powers and jurisdiction to audit telecom companies accounts. Companies that are operating in power, telecom sectors provide that services to the common man. License fee is paid for spectrum and the profit generated by companies is a public resource. The people have right to know whether the income goes into public exchequer is proper or not.

image Adviser on infrastructure to deputy Chairman of the Planning Commission said there can be no objection to the audit of the companies that share revenue with the Government.

FICCI, industry body did not take the ruling positively and said that private companies are not meant to be audited by CAG. India Inc and telecom companies are likely to appeal to the Supreme Court.

About Comptroller and Auditor General (CAG)

The duties and powers of CAG are enshrined in Part V (article 149-151) of the Indian constitution.

CAG audits all the expenditure from the Consolidated Fund of India of Union, of each State and of each Union Territory having a Legislative Assembly.

All trading, manufacturing, profit and loss accounts, balance-sheets and other subsidiary accounts kept in any department of the Union or of a State, to report on the expenditure, transactions or accounts are audited.

CAG presents a number of Audit Reports on the basis of audit of the Union Government and the State Governments to the Parliament and State Legislature respectively under Article 151 of the Constitution of India.

CAG certifies the Appropriation Accounts and Finance Accounts of the Union Government and of the State Governments.

CAG audits the Government Companies and Corporations under the Company’s Act 1956 and CAG's (DPC) Act, 1971.


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