DoT may not grant Bharti Airtel's audit request

The Department of Telecom is not in favour of a request from telecom major Bharti Airtel to shift the time period for its special audit for the financial year 2006-07 and 2007-08 to 2007-08 and 2008-09 instead.

Earlier this year, the Telecom Regulatory Authority of India (Trai) had noted a rise in Bharti Airtel’s revenue from the long-distance segment, which attracts only 6 per cent licence fee, as against up to 10 per cent for other mobile services. In 2006, the licence fee rates for the long distance segment were reduced from 15 per cent to 6 per cent.

Special auditors have already been appointed  to check the financial books of Bharti Airtel for 2006-07 and 2007-08. Since the terms of reference have been framed and the auditors appointed have already begun work, DoT fees it should go on, being an investigation.

An internal communication of DoT alos noted that Bharti Airtel has not yet sent its audited accounts for 2008-09. A Bharti Airtel spokesperson said the DoT had yet to reply their request.

Another telecom major, Reliance Communications, has also come under the scanner over the same suspicion, of possible misrepresentation of funds. The accounts books of these companies had come under a cloud after it was alleged that many of them had not been paying the government the required share of their earnings as licence fee, by showing the revenue earned under other categories.