Rediff.com » Business
CAG can audit accounts of private telcos: Court
Source: PTI January 06, 2014 13:30 IST
In a significant ruling, the Delhi High Court on Monday held that the Comptroller and Auditor General of India can audit the accounts of private telecom operators under the relevant provisions of the law.
A bench of justices Pradeep Nandrajog and V Kameswar Rao permitted the top accounting body to conduct audit of private telecom companies under the Telecom Regulatory Authority of India Act.
It rejected the separate petitions of Association of Unified Telecom Service Providers and Cellular Operators Association of India filed against the decision of Telecom Disputes Settlement and Appellate Tribunal on the issue in 2010.
The high court had reserved its order in November 2013, after conducting marathon hearings on the issue where it took on record submissions of the Centre, CAG and the petitioners --
COAI and AUSPI.
Both the associations had argued, in essence, that CAG can't audit private companies.
To achieve the purpose of audit, the operators had pointed out that they have already put in place mechanism of special audit as envisaged in the license agreement between department of telecom and the companies.
The firms had claimed they maintain accounts in line with the Trai rules and can't be forced to furnish financials to CAG.
The CAG had vigorously staked its claim to audit the accounts and sought revenue sharing details from the telecom companies.
Source:
PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
Recommended by Rediff.com
What to expect from the telecom sector in 2014
Telecom dreams bring Ambani close to rivals
18 things that happen on the Internet every minute
SPECIAL: Amid losses, Tata Tele scrambles for a saviour
Modi, Deepika, Sachin, Tejpal: Who is the Newsmaker of the Year?
© 2024 Rediff.com