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CAG can audit private telecom companies, rules Delhi HC

New Delhi: Delhi High Court today allowed the national auditor to investigate whether telecom companies under-reported their revenues.‬‪In 2010, the Comptroller and Auditor General (CAG) had sought the revenue details of telecom companies, but they
India TV News Desk January 06, 2014 14:56 IST
India TV News Desk
New Delhi: Delhi High Court today allowed the national auditor to investigate whether telecom companies under-reported their revenues.‬

‪In 2010, the Comptroller and Auditor General (CAG) had sought the revenue details of telecom companies, but they had challenged it in court, saying the national auditor cannot audit private companies.‬

‪After the high court refused to stop the audit, the companies moved Supreme Court, which ruled that the audit would begin after the high court heard the matter.

The CAG had argued that when there's revenue sharing with the government, it can audit private companies as well.‬

‪Today's verdict could have an impact on a similar case involving power distribution companies in the Delhi High Court.

These companies have also argued that the CAG cannot audit their account books.