- The decision of Justice K. S. Radhakrishnan’s bench to authorize the Comptroller and Auditor General (CAG) to audit any company that contributes to the Consolidated
- Fund of India, including the revenue transcripts of telecom companies, has been likened to the opening of Pandora’s box.
- This makes the CAG a third provision as the Department of Telecom can conduct audit operations on its own accord too.
- Multiple costs by multiple agencies (DoT, TRAI, Telecom Enforcement,Resource and Monitoring (TERM) cells, SEBI and now CAG) will increased costs and time to the operators.
- Increase the scope of CAG to private entities (according to this rationale of this ruling, every taxpayer is subject to audit by CAG)
- With the completion of spectrum option, most operators have bought airwaves, and unless these stringent rules are marginalised, the subscriber will feel the blow.
- Although this won’t impact all operators equally, the implementation will remain a concern since it involves billions of dollars of revenues of around 200 licences over 22 service areas.
- Read at: http://www.thehindu.com/todays-paper/tp-business/telcos-see-opening-of-pandoras-box-with-sc-order/article5924263.ece