CAG Audit-TDSAT reply

In a setback to GSM operators, who have been demanding that auditor CAG be stopped from vetting their account books, tribunal TDSAT today said it had no powers to intervene.
Four leading operators, Bharti Airtel, Vodafone, Tatas and RCom, besides state-run company BSNL, have been asked by the CAG to submit their accounts books for the last three financial years to ensure that they were paying what is due to the government in terms of licence fee.

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The private operators, who were earlier subjected to a special audit after the government observed some irregularities related to fee payments, have been saying that CAG has no jurisdiction to audit the accounts of private operators and hence moved the tribunal. Declining to grant any interim relief to the petitioners (private operators), the TDSAT said: "The power of CAG is an independent one flowing from a statutory rule and not out of a contract qua contract."

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