DoT orders audit probe on leading telcos | india | Hindustan Times
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DoT orders audit probe on leading telcos

Department of telecommunications (DoT) on Wednesday issued notices to all integrated telecom players to conduct special audits of their accounts.

india Updated: Apr 01, 2009 23:06 IST
Manoj Gairola

Department of telecommunications (DoT) on Wednesday issued notices to all integrated telecom players to conduct special audits of their accounts. The companies include Bharti Airtel, Vodafone, Tata Teleservices and Idea.

The department had received complaints against some of them accusing them of shifting their revenues earned from access services to revenues from long distance services.

“We have received complaints against various integrated telecom players. Instead of conducting special audit against one or two players, we decided to conduct special audit of accounts of all the integrated players,” said Siddharth Behura, secretary of the DoT.

At present, telecom operators have to pay to the government a licence fee of about six per cent of annual gross revenue (AGR) on long distance services. For access services (mobile and fixed line) the licence fee is up to 10 per cent.

By conducting the special audit, DoT wants to investigate whether these companies have shown revenues earned from access services under revenues from long distance services so as to avoid licence fees.

DoT is currently conducting a special audit of the accounts of Reliance Communications Ltd (RCL). CAG has already sent it as list of auditors who can conduct special audits.