The government had asked the federal auditor, which typically audits only public companies, to inspect accounts of several private telecom players amid speculation that they under-reported revenues in a bid to save on spectrum licence fees they pay to the government.
The Supreme Court on Thursday rejected a plea filed by telecom companies challenging a Delhi High Court order that had allowed an audit of their books.
The government had asked the federal auditor, which typically audits only public companies, to inspect accounts of several private telecom players amid speculation that they under-reported revenues in a bid to save on spectrum licence fees they pay to the government. The licence fee is based upon revenues reported by telecom companies.
But the move was challenged by the Association of United Telecom Service Providers (Auspi) and the Cellular Operators Association of India (Coai) in the Delhi court who allowed the audit in January after which they moved the Supreme Court.
The Supreme Court today said the CAG was authorized to examine if the government is getting its due share. The court directed the telecom companies to provide their books of accounts for the CAG to verify.
Telcos believe that being private companies, they are beyond the scope of a CAG audit.
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