Top Six Telecom Companies May Face Government Action for Understating Revenues

India's top six telecom companies may have to pay an additional Rs 46,000 crore in licence fees and spectrum usage charge to the government, said the department of telecommunications in a statement.

In February 2016, the Comptroller and Auditor General (CAG) of India submitted a report to the government on alleged understatement of revenue by size telecom companies – Bharti, Vodafone, Aircel, Reliance, TATA and Idea. The telecom department statement reveals that the CAG report pertained to four financial years, FY07-FY10, and pointed out a shortfall of Rs 5,000 crore of license fee and spectrum usage charge and Rs 7,000 crore of interest. But the department's statement does not clarify whether this shortfall is for each of the four years or consolidated figures, nor does it explain the reference to Rs 46,000 crore in the CAG report.

The telecom department says in June 2016 it received key documents from CAG. It says these are being “vigorously examined and the process of issue of demands for the four financial years for six operators in 22 licence service areas in consonance with license agreement is currently ongoing.”

The statement points out that ‘demands raised from this exercise will be recovered with due interest and penalty as applicable under licence agreements.'