NEW DELHI: The Comptroller and Auditor General has flagged the way the telecommunications department in 2005 merged the Chennai and Tamil Nadu telecom service areas, a decision that the national auditor says deprived the government at least Rs 2,400 crore of revenue and benefited Bharti Airtel and Aircel.
According to an internal CAG note, which was reviewed by ET, merging of the two circles had effectively extended the licence period for the companies in one of the areas. The Department of Telecommunications (DoT) has done this bypassing the route it should have followed - that is of seeking opinion of the finance ministry, telecom commission and the Telecom Regulatory Authority of India, the note says.
Bharti Airtel declined to comment on the matter , while Aircel could not be contacted immediately.
The telecom minister at the time was Dayanidhi Maran, who is currently facing a probe by the Central Bureau of Investigation for his role in alleged irregularities in the Aircel-Maxis deal.
The telecom department had cited public interest for the merger of Chennai and Tamil Nadu service areas, saying that it would ensure that a subscriber when travelling out of Chennai to therest of the state or vice versa would not have to pay roaming charges.
The telecom minister at the time was Dayanidhi Maran, who is currently facing a probe by the Central Bureau of Investigation for his role in alleged irregularities in the Aircel-Maxis deal.
The telecom department had cited public interest for the merger of Chennai and Tamil Nadu service areas, saying that it would ensure that a subscriber when travelling out of Chennai to therest of the state or vice versa would not have to pay roaming charges.