CAG audit: Second setback for telcos as HC too spurns plea for stay

The Court, however, also said the CAG will not ask for any further document except the details relating to revenue-sharing

In a setback to mobile operators, the Delhi High Court today asked them to submit their account books to the apex auditor Comptroller and Auditor General of India (CAG), which has been asked by the government to check under-reporting of revenue for calculating the licence fee, reports PTI.

A division bench comprising justices Sanjay Kishan Kaul and Valmiki Mehta directed telecom operators to provide details of their revenue sharing to the CAG for auditing.

"We direct that without prejudice to the rights and contentions of the parties, the petitioners (telcos) will make available the revenue sharing details/documents to the CAG for auditing," the bench said in an interim order.

Over the telcos plea that they are private industry players and do not fall under the domain of the CAG, the court said, "In our considered view, prima facie the interest of the government is the revenue generated under the licence agreement."

The court, however, also said the CAG will not ask for any further document except the details relating to revenue sharing. "No further material would be asked from petitioners except those concerning the revenue sharing arrangements," the court said.

The court further directed the CAG not to disclose the information given by the telcos in the public domain or to any third-party. "Since this information is being directed to be disclosed without prejudice to the rights and contentions of the petitioners, the said information shall not fall into the public domain and will not be disclosed to any third party," the court said.

The court, however, admitted the petition filed by the GSM lobby the Cellular Operators Association of India (COAI) and CDMA lobby Association of Unified Telecom Service Providers of India (AUSPI) and issued notices to the Department of Telecom (DoT) and the sectoral regulator Telecom Regulatory Authority of India (TRAI).

The COAI and AUSPI had challenged the recent CAG direction to the telcos to submit their revenue sharing details with it for auditing.

Earlier on May 20, telecom tribunal Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had also declined a similar request from Bharti Airtel and Vodafone to stay the CAG audit.


GVK unit wins Deoli-Kota road project worth Rs850 crore

GVK Power & Infrastructure Ltd (GVKPIL) said its unit GVK Developmental Projects Pvt Ltd won the bid for construction of Deoli-Kota road under the National Highways Development Program-phase III. The estimated cost of the project is Rs850 crore.

The scope of the work involves four laning-starting from 165 km to Junction of National Highway (NH) 76 on Kota Bypass on the Deoli-Kota Section of the NH 12 in Rajasthan on build, operate and transfer (BOT) basis.
The project will be implemented by GVK Deoli Kota Expressway Pvt Ltd, a special purpose vehicle, which has signed the concession agreement with the National Highways Authority of India.  

On Tuesday, GVKPIL shares ended 0.5% down at Rs42 on the Bombay Stock Exchange, while the benchmark Sensex closed 2.2% down at 16,572 points.




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Daily Market View:A fresh downleg?

Watch out for 16,000 on the Sensex

The market was down today on profit-booking and concerns over the global economic recovery. The Sensex ended at 16,572, down 372 points (2.2%) while the Nifty ended at 4,970, down 116 points (2.2%). The bourses were depressed in the morning, taking cues from Asian markets. Trading was range-bound till the early afternoon when the Sensex slid 600 points touching the intraday low of 16,318.39 because of some freak trade on index stock Reliance Industries (RIL).

The Nifty also was down below the 5,000 mark. Trading was choppy for the rest of the session. 

Asian stock markets were down as Chinese manufacturing growth slowed down. Key benchmark indices in Hong Kong, South Korea, Indonesia, China, Japan and Taiwan were down by 0.66% to 2.26%. Wall Street was closed on Monday, (31st May), for the Memorial Day holiday. 

The global sugar market is likely to see a surplus of 5 million tonnes this year, a 30% rise from the figure estimated previously. An improving harvest in India and Brazil has fuelled a sell-off in sugar markets, with New York raw futures losing half of their value since hitting a 29-year peak of 30.40 cents a pound in February.
Global sugar consumption is expected to grow at 2.3% by March 2011 as per sugar consultancy firm Kingsman SA Consultancy.  

Manufacturing in the eurozone grew at a slower rate in May. The Markit Eurozone Manufacturing Purchasing Managers' Index (PMI) for May sank to 55.8 from 57.6 in April, nudged down from an earlier flash estimate of 55.9.

Manufacturers were hit by the increasing cost as the input price index reached its highest level since July 2008 at 73.7 last month, compared to 73.4 in April.

Chinese manufacturing grew at a slower pace in May, indicating that the Chinese government's steps to control the economy could be having an effect. The official China Federation of Logistics and Purchasing’s (CFLP) Purchasing Managers Index was down to 53.9 in May 2010 from 55.70 in April 2010, while HSBC Holdings Plc's PMI was down to 52.7 in May from a revised 55.2 in April. 

Back home, India's exports rose an annual 36% in April to $16.9 billion, the sixth consecutive rise after 13 straight months of decline. Imports rose 43% from a year earlier to $27.3 billion. India's exports dropped 4.7% in the fiscal year 2009-10 as the global slowdown dampened demand.

The HSBC Markit Purchasing Managers’ Index (PMI), based on a survey of 500 Indian firms, surged to a 27-month high of 59 in May 2010 from 57.2 in April 2010, on steady growth in output, new orders and employment. The rate of growth had slowed in March and April 2010.

Foreign intuitional investors (FIIs) were net buyers, purchasing stocks worth Rs586 crore. Domestic institutional investors (DIIs) sold equities worth Rs73 crore.

IVRCL Infrastructures & Projects (down 3.3%) has received one of the largest toll road projects of around Rs3,100 crore from the National Highways Authority of India (NHAI). Bajaj Auto (down 2%) sold 269,488 motorcycles in May 2010, a growth of 63% from the same month in 2009. Three-wheeler sales in May 2010 stood at 29,954 units, up 52% from the corresponding month a year ago. Total sales for the month of May 2010 stood at 299,442 units, 62% higher from a year earlier.

Maruti Suzuki India (up 1.8%) sold over one lakh units in a month. The company's total sales were 102,175 units in May 2010, which included exports of 12,134 units. The previous highest in total monthly sales was 96,650 units, sold in February 2010. In May, the company sold 90,041 units in the domestic market, up 27.2% over the corresponding month last year. The board of NRB Bearings (down 1.5%) has recommended the issue of bonus shares in the ratio of one equity share of face value of Rs2 for every one equity share held by its members.

The bonus issue will be by way of capitalising Rs9.69 crore out of the amount standing to the credit of the share premium account.


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