CA Sandeep Kanoi
The Supreme Court has held in the case of ASSO.OF UNIFIED TELE.SERV.PROV.& ORS. Vs. UNION OF INDIA & ORS. in CIVIL APPEAL NO. 4591 OF 2014, Date of Decision 17.04.2014 that Pvt firms including telecom Companies come in CAG ambit. The order has virtually brought all private companies using natural resources on the basis of revenue-sharing arrangement with government within the scrutiny of CAG as it allowed the official auditor to go into the accounts of telecom firms.
The Supreme court held that CAG audit of such private companies is necessary to ensure that there is no unlawful loss to government as there has been instances where the Executive “acts hand in glove” with companies for their benefits.
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