The Association of Unified Service Providers (Auspi) and Cellular Operators’ Association of India (COAI), representing CDMA and GSM telecom companies or telcos respectively, have decided to file separate petitions in the Supreme Court seeking interim stay on the Delhi High Court’s go-ahead to the Comptroller and Auditor General of India (CAG) to audit private telcos’ revenues.
Both Auspi and COAI feel any CAG audit of private telcos’ revenues would tantamount to a breach of the Constitution which allows audit of only public sector firms, while private telcos ought to be audited by the Department of Telecommunications (DoT).
The Delhi HC, they contend, has failed to decide whether, in the context of CAG audit, the Constitution applies to private companies. They said CAG’s past audits, like the one pertaining to the inconclusive 2G scandal, proved to be imperfect anyway.
CS Rao, Auspi president, said, “We are expecting hearing of our Monday’s petition next week. If necessary, DoT can audit again any suspected arrears in private telcos’ revenues. The argument that all companies contributing to excise duties are liable for audit by the CAG, should apply to manufacturers across verticals as well as high net worth individuals.”
However, Mahesh Uppal, director, Com First (India), a firm dealing with telecom regulatory affairs, disagreed. "It is reasonable for the CAG to investigate the share of revenues going to the exchequer, especially since the licence fees payable to government run into thousands of crores of rupees and and there are frequent allegations that private telcos are understating revenues. Of course, the CAG has committed some blunders in investigating the 2G scam. This does not necessarily mean that the CAG can't audit telcos; only, but it must do a smarter job."
Dev Raj Singh, executive director, said, “The purpose of an audit is to have transparency.”
But Rajan Matthews, director general of the COAI, said telcos are already subjected to internal and other audits; so, the government should constitute a single authority to audit private telcos. Ashok Sud, director general of Auspi, said multiple audits inflate costs and disrupt operations as well.
While spectrum usage charges or SUC are in the range of 2-8% of telcos’ adjusted gross revenues annually, contribution to the Universal Service Obligation Fund or Usof is 5%. Licence fee to the government is about 6% annually.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}