CAG can audit private telecom firms: SC

File photo shows cell phone towers in Chennai. The Supreme Court has held that the Comptroller and Auditor-General of India can audit the accounts of private telecom companies which share revenue with the government for using spectrum.

The Supreme Court made it clear on Thursday that private companies that share revenue from natural resources such as spectrum with the government would be subjected to audit by the Comptroller and Auditor General.

A Bench of Justices K.S. Radhakrishnan and Vikramajit Sen dismissed an appeal filed by the Association of Unified Telecom Services Providers against a Delhi High Court judgment which held that the CAG could audit private telecom companies.

Justice Radhakrishnan said it was important that the CAG examined the accounts to detect any unlawful gains.