CAG Calls for Action: Recovering Millions in Outstanding Telecom Penalties

The CAG report reveals that Digital Bharat Nidhi must recover a penalty of Rs 8.49 crore from Bharti Airtel for uncommissioned telecom sites in Assam and Sikkim. Despite a 2017 agreement, many sites remain incomplete, signaling weak contract enforcement after multiple deadline extensions and recovery efforts.

A recent report by the Comptroller and Auditor General (CAG) has highlighted the urgent need for Digital Bharat Nidhi (DBN) to expedite the recovery of Rs 8.49 crore in liquidated damages and non-performance penalties from Bharti Airtel.

The penalties pertain to a 2017 agreement, under which Bharti Airtel was to commission telecom sites in Assam and Sikkim by June 2019. However, numerous sites remain incomplete, illustrating significant delays and successive deadline extensions.

The CAG's findings, tabled in Parliament, indicate that out of the initially approved 756 sites, only 431 were operational by April 2021. Despite later adjustments to a target of 562 sites, 124 remain uncommissioned as of April 2025, thus calling into question the strength of contract enforcement measures.

(With inputs from agencies.)