“Verification of records of six PSPs indicated total understatement of Rs. 46,045.75 crore in gross revenue, 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,” the Comptroller and Auditor General of India (CAG) said.
The CAG said the financial impact due to understatement of gross revenues was Rs 1,507.25 crore for Reliance Communications, Rs 1,357.68 crore for Tata Teleservices, Rs 1,066.95 crore for Airtel, Rs 749.85 crore for Vodafone, Rs 423.26 crore for Idea and Rs 107.61 crore for Aircel. The combined loss includes interest charges of Rs 7,276.33 crore.
“The issues pointed out by the CAG pertain to those disputes, which have either been settled or stayed by various Courts. Further, we would like to reiterate that our member companies follow the highest standards of corporate governance and have always been in compliance with all regulations,” a joint statement of telecom industry associations – COAI and AUSPI said.