The Comptroller and Auditor General (CAG) can investigate the account books of private telecom companies, the Delhi High Court today said.
In 2010, the Comptroller and Auditor General (CAG) had sought the revenue details of telecom companies in connection with the 2G spectrum scam, or the arbitrary allocation of precious spectrum to private companies at throwaway prices. The telecom companies had then moved court, arguing that the national auditor cannot look into private companies.
The CAG had said that since the companies are in a revenue sharing arrangement with the government, they can be subjected to a state audit as well.
After the high court refused to stop the audit, the companies moved Supreme Court, which referred it back to the high court.
Today's verdict could have an impact on a similar case involving power distribution companies in the Delhi High Court, which will be heard on January 22. These companies have also argued that the CAG cannot audit their account books.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
