Trai directs annual audit for telcos, asks to refund overcharged tariff

Telecom Regulatory Authority of India (Trai) has said that telecom companies will have to refund any excess amount they charged from consumers if it is proved by an auditor that they have been overcharged, The Economic Times (ET) has reported. Trai said the refund should be issued within three months of receiving the audit results.

The latest directions have been issued as a part of the quality of service (code of practice for metering and billing accuracy) regulations, 2023, notified by Trai on September 11. According to the rules, every telecom company should get its metering and billings systems audited once a year and submit the action taken report to the authority, the ET report said.

A fine of up to Rs 50 lakh for non-compliance

The audit has to be conducted by a panel of auditors notified by Trai. Non-compliance or failure to submit the report can result in monetary penalties that can go up to Rs 50 lakh per report.

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Apart from this, the report added that every telecom company has to mandatorily submit the annual audit schedule to the authority, which shall contain the details of billing systems and licensed service areas (LSAs) to be audited.

Mandatory to communicate within a week

If an instance of overcharging the customers comes to the fore, it will be brought to the service provider's notice in writing as soon as possible. Any such communication should not take more than a week, the authority said.

Moreover, after the company has been told about instances of overcharging, it has to refund the amount to the consumer within three months, an ABP report said. However, if there is a delay in sharing details on the part of auditors, telecom companies will not have to pay any fines.

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