The Comptroller and Auditor General of India (CAG) has reportedly criticised the Department of Telecommunications (DoT) for providing ?undue benefit? of Rs 1.87 billion to Vodafone by not levying an ?enhanced? spectrum usage charge on the operator for using 3G spectrum in circles where it did not have 3G licence.
Further, CAG has reproached DoT for not ?revoking? Vodafone?s licence for offering 3G services illegally through 3G intra-circle roaming pacts in 11 circles. According to CAG, since Vodafone was earning service revenue using the unallocated 3G spectrum, it was supposed to pay spectrum usage charges to the government.
Following CAG?s observations, DG Post and Telecommunications, a unit of CAG in charge for audits pertaining to the telecom sector, has directed DoT to impose a penalty of Rs 5.49 billion on the operator. The matter is currently being heard by the Supreme Court.
