CAG's move is beyond its jurisdiction: COAI

NEW DELHI, INDIA: In yet another jolt for Indian telecom service providers, the Comptroller Auditor General (CAG) has sought detailed information on revenue-sharing that also implies to revenue collected from spectrum deals amongst themselves. The CAG, in its communiqué to watchdog TRAI, has asked to furnish information and documents since FY 2006-07 from telcos.

GSM body Cellular Operators Association of India (COAI), has meanwhile slammed CAG and said that the move is beyond their jurisdiction and it could not take action based on information. The association said that the national auditor has no right to question operators' sovereignty.

Speaking to CIOL, COAI executive director Rajan S Mathews said that the Supreme Court should make a final decision as the matter is beyond CAG jurisdiction. "As per the apex court verdict, they (CAG) cannot take action and have no right to seek information," he said.

The CAG, Mathews feel, can interfere in public entities only while the private operators have nothing to do with it. COAI said that the auditor can't take any action on information provided by operators via telecom regulator therefore, it was a futile attempt.

The August 2, 2010 apex court judgment, however, restrains CAG to audit the private operators' books since the case is underway in the Delhi High Court. The CAG move has put operators in a tight spot as the latter were claiming shrinking revenues.

The apex court order permits CAG to collect necessary information on revenue sharing from the private operators. It held that if the auditor requires any further information on revenue sharing, the same shall be supplied by them.