The Supreme Court today said that the national auditor, the Comptroller and Auditor General (CAG), is empowered to audit private telecom companies.

The Delhi High Court had in January this year upheld the validity of laws empowering CAG to conduct revenue audits of private telecom firms.

Private telecom companies and Cellular Operators Association of India had challenged the Delhi High Court order.

The Centre had argued that in private-public partnership ventures, the revenue generated by the licencees is required to be shared with the Union government in line with the licencing agreements.

Telecom companies pay a portion of their revenue as licence fee to the government.