CAG audit of private telcos will open Pandora’s box, says Singhvi

The Delhi High Court’s verdict on Monday, allowing the Government auditor to look into the accounts of private telecom companies, can open a Pandora’s box if not addressed immediately, said Abhishek Manu Singhvi, senior Supreme Court lawyer.

Singhvi, who is also counsel for telecom service providers, told Business Line that the Comptroller and Auditor General (CAG) of India is not entitled to audit anything more than a government entity. The Delhi High Court turned down the plea of private telecom operators and allowed the CAG to audit their books.

Singhvi wondered, going by the High Court verdict, how revenue sharing in any manner can make a firm ‘a government entity’ that can be audited by the CAG.

“If you start applying this (the High Court verdict), how far does the matter go? The Consolidated Funds of India test may not be the best test, which the High Court appears to have adopted,” he told Business Line .

The verdict will have larger repercussions, Singhvi said, adding that it needs to be considered on a larger canvas.

“Certainty, clarity and finality on this issue by a higher authority — the Supreme Court — will be good for the country because this is something that applies to a large number of issues,” said Singhvi.