According to CAG report 6 telecom operators including Airtel, Idea and Vodafone had understated Rs 46,046 crore in gross revenue.
Implications of understatement of revenue:
On account of understatement of revenues the govt. has suffered a loss of Rs 12,489 crore due lower collection on licence fees and spectrum usage charges.
Both licence fee (LC) spectrum usage charges (SUC) are linked to the revenue collection of the telecom companies. LC is charged to permit operations as telecom operator and SUC are levied for using the radio frequency bandwidth.
Decision of Union govt.:
Union govt. has ordered a special audit of telecom companies to find the details. This special audit is announced after CAG report which indicated loss in govt. revenue