Six Telecom Companies Under-Reported Revenue: CAG Report

The Comptroller and Auditor General revealed on Friday that Private telecom operators have understated revenues worth over Rs 61,000 crore from 2010 to 2015, leading to a shortage of payment to the exchequer.

CAG in its latest report tabled in Parliament today, said its audit indicated "total understatement of adjusted gross revenue (AGR) of Rs 61,064.56 crore" by six operators.

For five operators -- Bharti Airtel, Vodafone India, Idea Cellular, Reliance Communications and Aircel -- the period of audit pertains to 2010-11 to 2014-15. On the other hand, for Sistema Shyam, the window in reference is 2006-07 to 2014-15. CAG also mentioned that this amount includes around Rs 4,532 crore interest dues on the short-term payments.

This understatement of AGR was due to promotional schemes, such as like free talk time and discounts, and non-inclusion of profit from the sale of investment stated the CAG report.

On Friday’s trading session, Idea cellular dips by 3.58% at Rs 91.45 per share, Bharti Airtel was down by 2.30% at Rs 410.25 per share, while RCom was down by 1.43% at Rs 24.10 per share. 

 
 
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