Did Airtel, Vodafone, Reliance, Tata, Idea and Aircel understate revenues?
The Department of Telecommunication (DoT), on Thursday said that the Comptroller and Auditor General of India (CAG) report has stated that six of the leading telecom companies in India understated their revenues.
The 6 service providers are Bharti, Vodafone, Aircel, Reliance, TATA and Idea
DoT, in a statement, said, “CAG Report on understatement of revenue by six Telecom Service Providers by Rs 46,000 crores was received in February 2016. The Report pertains to four years i.e. 2006-07 to 2009-2010 which is before the tenure of this government.”
The Report pointed out a shortfall of Rs 5,000 crore of License Fee and Spectrum Usage Charge and Rs 7,000 crore of interest.
DoT said that the documents are being “vigorously” examined and the process of issue of demands for the four financial years for six operators in 22 license service areas in consonance with license agreement is currently ongoing.
Demands raised from this exercise will be recovered with due interest and penalty as applicable under license agreements. There is therefore no loss of revenue to Government, it said.
Shares of telecom companies tumbled on Friday morning. See here.
Idea cellular reported the highest stock price change from its close yesterday and opened 2.70% lower at Rs 103.40 per share.
DoT said that Revenue Assurance is of top priority and that there will be no loss of revenue to the government.