'CAG audit of telcos may destabilise businesses'

Contending that it is “wasteful exercise” which will “destabilise businesses” in the country, Association of Unified Telecom Service Providers Auspi is considering filing an appeal in the Supreme Court against the Delhi High Court ruling that CAG can scrutinise revenues of private telecom companies.

 “This is going to create one more inefficient department in the institution of CAG and defocus the CAG from its core business of auditing the government firms,’ Ashok Sud, Secretary General, Auspi told Deccan Herald.

He said that the telecom firms were discussing the ruling and debating whether to appeal in the Supreme Court on the same. “Auspi will come out with decision in a day or two,” he said.

Although Article 149 of the Indian Constitution empowers CAG to audit the accounts of any authority or body as may be prescribed by or any law made by Parliament, it may not be practical for CAG to vet each and every private firm, Sud said.

While telecom firms are brought into the ambit of CAG’s scrutiny today, it could be the turn of other private firms tomorrow, he mentioned.

The Delhi High Court Monday ruled that the CAG can audit the accounts of telecom companies with a rider that audits should be limited only to the receipts.  

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