Delhi HC allows CAG to audit accounts of telecom firms

In a landmark judgment, the Delhi High Court on Monday ruled that the Comptroller and Auditor General (CAG) can audit private telecom companies under the relevant provisions of the law.

A lawyer representing the CAG, Aman Lekhi, said the court upheld the CAG constitutional rights, as private companies deal with public funds.

"The court has ruled that the CAG has the rights. Under the Constitution in the CAG act, the CAG has powers and jurisdiction to audit their accounts. License fee is paid for Spectrum and the profit generated by companies is a public resource in which people have stake and right. Since it is public resource and people have right and stake in it, the CAG gas right to check that income, which goes into public exchequer, is proper or not," Lekhi said in New Delhi.

In 2010, the CAG had found that private companies had under-reported invoicing and had sought their revenue details.

The court rejected the companies contention that they were private bodies and hence out of the purview of the Constitutional audit body's jurisdiction.