Delhi HC Rules That Govt Auditor CAG Can Investigate Private Telecom Companies Monday Jan 06,2014

The Delhi High Court today Monday Jan 06,2014 ruled that the national auditor, the Comptroller and Auditor General (CAG), has the powers to investigate the financial records of private telecom companies

The telecom companies, who are being investigated in connection with the 2G spectrum scam or the arbitrary allocation of spectrum at throwaway prices, had challenged the government auditor's right to examine private entities.

The Delhi HC today rejected their argument.

Note
The CAG had in 2010 sought the revenue details of the companies to examine whether they under-reported their revenues, causing huge losses to the government. The auditor said since the companies are in a revenue sharing arrangement with the government, they should be open to an audit.

When the Delhi High Court refused to stop the audit, the telecom companies moved Supreme Court, which referred the case back to the Delhi HC