CAG empowered to audit private telecom companies, says Supreme Court

The Supreme Court today said that the national auditor, the Comptroller and Auditor General (CAG), is empowered to audit private telecom companies.

The Delhi High Court had in January this year upheld the validity of laws empowering CAG to conduct revenue audits of private telecom firms.

Private telecom companies and Cellular Operators Association of India had challenged the Delhi High Court order.

The Centre had argued that in private-public partnership ventures, the revenue generated by the licencees is required to be shared with the Union government in line with the licencing agreements.

Telecom companies pay a portion of their revenue as licence fee to the government.

This decision of the apex court comes after the Delhi High Court had earlier refused to stay the decision of erstwhile Aam Aadmi Party's (AAP) Delhi government had asked the CAG to audit the accounts of the three electricity distribution companies alleging their involvement in financial irregularities.