Background of the case

The case goes back to 2009 when DoT hired CAG-empanelled auditors to look into the books of Bharti Airtel, Reliance Communications, Vodafone India and Idea Cellular for the years 2006-07 and 2007-08.

The telecom companies approached the High Court seeking a stay on the CAG’s decision. Setting aside their plea, the court, on January 6, had said there are no doubts on CAG’s constitutional powers to look into all forms of income derived by the Government. It, however, added that in relation to accounts of telecom companies, audit has to pertain to revenues and not into aspects such as “wisdom and economy in expenditures”.

The January 6 court ruling has been viewed with apprehension by private firms as it is possible to interpret the directive to say all companies that contribute to the consolidated fund of India can be audited by CAG.

After the Delhi High Court verdict the Telecom operators had moved the Supreme Court to overturn the High Court’s verdict allowing the CAG to audit revenues of private companies. The Association of Unified Telecom Service Providers of India and the Cellular Operators Association of India had challenged the verdict that said the top auditor was empowered to conduct revenue audits of the firms.

Source: http://cablequest.org/news/telecom-news/item/4646-background-of-the-case.html
Source: http://cablequest.org/news/telecom-news/item/4646-background-of-the-case.html