SC posts mobile operators stay plea on CAG audit to August

While refraining from granting any relief to mobile operators on a Delhi High Court order allowing an audit by comptroller and auditor general (CAG) to ascertain whether there were revenue leakages in licence fee payment to the government, a vacation bench of the Supreme Court, comprising Justice Deepak Verma and Justice K S Radhakrishnan, yesterday adjourned the hearing in the case to August.

During the proceedings the counsel for the Cellular Operator's Association of India (COAI) argued that the direction of the High Court was not based on merit.

The Supreme Court bench observed that mobile service providers would have to cooperate with CAG on allowing their books to be audited as it was a statutory requirement of law.

The Delhi High Court on 1 June had ordered telecom operators to present their account books to CAG. The government has asked the CAG to examine alleged under-reporting of profits for computation of license charges.

However, the apex court has directed the CAG to restrict the information it sought to only facts connected to profits-sharing, which it said should not be revealed to any third party nor be revealed in the public sphere.

Meanwhile, reacting strongly to reports in the electronic media alluding to supposed damaging emissions from cellular base stations in Delhi, the Cellular Operators Association of India (COAI) said the reports were not grounded in reality or any finding (in India or overseas).

According to COAI director general R S Mathews, the reports appear to be mischievously intended to create fear among the public.

He said that the industry body was ready for a ''holistic review of scientific evidence, and not on the basis of non-standard tests or benchmarks or because of any vested or commercial interest, which could paint an alarming, misleading and inaccurate picture of the situation''.