Lok Sabha Question No. 15 (STARRED), answered on 2016-02-24
Subject: Audit of Accounts of Telecom Companies
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: RAGHAV LAKHANPAL, CHANDRAKANT BHAURAO KHAIRE

## MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

## GOVERNMENT OF INDIA DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA STARRED QUESTION NO.15 TO BE ANSWERED ON 24 th  FEBRUARY, 2016

## AUDIT OF ACCOUNTS OF TELECOM COMPANIES

- *15. SHRI RAGHAV LAKHANPAL: SHRI CHANDRAKANT KHAIRE:

Will  the  Minister  of  COMMUNICATIONS  AND  INFORMATION  TECHNOLOGY  be pleased to state:

- (a) whether  the  Telecom  Regulatory  Authority  of  India  (TRAI)  has  ordered  audit  of accounts of telecom companies;
- (b) if so, the details and outcome thereof;
- (c) the  details  of  companies  found  to  be  misrepresenting  and  under-reporting  of  gross revenues, telecom operator-wise and the action taken penalties imposed on them;
- (d) whether  the  telecom  companies  are  not  cooperating  with  auditing  agency/agencies and also delaying the account documents to the auditing agencies; and
- (e) if  so,  the  details  thereof  and  the  action  taken  by  the  Government  against  such companies?

## ANSWER

THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) to (e) A Statement is laid on the Table of the House.

## STATEMENT  TO  BE  LAID  ON  THE  TABLE  OF  THE  LOK  SABHA  IN  RESPECT  OF PARTS (a) TO (e) OF LOK  SABHA STARRED QUESTION NO.15 FOR 24 th  FEBRUARY, 2016 REGARDING 'AUDIT OF ACCOUNTS OF TELECOM'.

- (a)  & (b) TRAI has not ordered for audit of account of any telecom company.
- (c) The details of companies found to be misrepresenting and under-reporting of revenue as  a  result  of  special  audit  conducted  by  DoT  in  2009  for  the  financial  year  2006-07  and 2007-08 is as below:-

|   S. No | Group of Companies   |
|---------|----------------------|
|       1 | Reliance Group       |
|       2 | Bharti Group         |
|       3 | TATA Group           |
|       4 | Vodafone Group       |
|       5 | Idea Group           |

Taking  into  consideration  the  under-reporting  revenue,  license  fee  due  has  been calculated and demand notices for recovery of the same were issued. The demands are still subjudice because the telecom companies have challenged the same in various courts as detailed below:

|   Sl.No | Name of Company   |   Demands Raised (in crores) | Name of the court in which the case is subjudice                                                                                                |
|---------|-------------------|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|       1 | Reliance Group    |                       623.18 | The case is in the Hon'ble High Court of Kerala and the TDSAT. The enforcement of demand has been stayed by the High Court of Kerala and TDSAT. |
|       2 | Bharti Group      |                       332.12 | The case is in the Hon'ble High court of Kerala and there is a stay on enforcement of demands.                                                  |
|       3 | TATA Group        |                       510.15 | The case is in the Hon'ble High Court of Kerala and the Court has stayed the enforcement of demands.                                            |
|       4 | Vodafone Group    |                       246.89 | The case is in the Hon'ble High court of Kerala and the Court has stayed the enforcement of demands.                                            |
|       5 | Idea Group        |                       134.17 | The case is in the Hon'ble High court of Kerala and the Court has stayed the enforcement of demands.                                            |

- (d) & (e) No instance of non co-operation by Telecom Service Providers with Auditors was reported.

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