Tuesday, May 26, 2015

Supreme Court allows CAG to audit private telecom firms

The high court had upheld the validity of laws empowering CAG to conduct revenue audits of private telecom firms.

The apex court had on February 3 sought responses from the Centre and CAG on the pleas of the associations. (Reuters) The apex court had on February 3 sought responses from the Centre and CAG on the pleas of the associations. (Reuters)
Written by Utkarsh Anand | New Delhi | Updated: April 17, 2014 9:43 pm

high court seeking a stay on the CAG decision.

Referring to the constitutional powers of the CAG which is known as the guardian of the purse, the court said Parliament had an obligation to ascertain whether the entire receipts by way of licence fee and spectrum charges have been realised by the Union of India and credited to the consolidated fund of India and this task was assigned to the CAG.

Spectrum, a natural resource, belongs to the people and therefore people should know how it has been dealt with by the union, state or its instrumentalities or even by UAS licence holders, the court said.

“Instances are not rare, where even the executive, at times, acts hand in glove with licence holders, who deal with the natural resources, hence, necessity of proper parliamentary control over the resources,” the bench said, adding the revenue received by the government was “a receipt payable into the consolidated fund of India” for all purposes.

 

First Published on: April 17, 2014 7:30 pmSingle Page Format
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