Govt takes Rs.12,489 cr hit as telcos understate revenue

Verification of records of six private telecom service providers indicated total understatement of Rs.46,045.75 crore in gross revenue, says CAG Source: PTI

The interest on this short/non-payment of licence fee and spectrum usage charge works out to Rs.7,276.33 crore

Government has suffered a loss Rs.12,488.93 crore as six private telecom operators including RCom and Bharti Airtel understated gross revenue by Rs.46,045.75 crore from 2006-07 to 2009-10, CAG said on Friday. The Comptroller and Auditor General of India (CAG) presented its report on sharing of revenue by private telecom service providers (PSPs) in Parliament on Friday. "Verification of records of six PSPs indicated total understatement of Rs.46,045.75 crore in gross revenue (GR), having corresponding impact of Rs.3,752.37 crore on licence fee (LF) and Rs.1,460.23 crore on spectrum usage charge (SUC). The interest on this short/non-payment of LF and SUC works out to Rs.7,276.33 crore," CAG said. The report contains significant findings on correctness and completeness of revenue share paid to the government by Bharti Airtel, Vodafone India, Reliance Communications, Idea Cellular, Tata Teleservices and Aircel along with their subsidiaries for the period from 2006-07 to 2009-10. The financial impact due to understatement of GR stood at Rs.1,507.25 crore for Reliance Communications, Rs.1,357.68 crore for Tata Teleservices, Airtel (Rs.1,066.95 crore), Vodafone (Rs.749.85 crore), Idea (Rs.423.26 crore) and Aircel (Rs.107.61 crore), the CAG said.

March 11, 2016 | 05:45pm IST

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Govt takes Rs.12,489 cr hit as telcos understate revenue

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