CAG: 75% of ₹143.09 crore telecom penalties unrecovered as of March 2025

This audit examined the compliance of the Department of Posts, Department of Telecommunications, Department of Expenditure, and Ministry of Electronics and Information Technology (including their PSUs) for the year ended March 31, 2024, as well as earlier periods where relevant.

Who it concerns: Ministry of Communications (Department of Posts, Department of Telecommunications), Ministry of Finance (Department of Expenditure), Ministry of Electronics and Information Technology, and Public Sector Undertakings under the Ministry of Communications.

What the auditor found

• Non-levy of GST amounting to ₹78.92 crore on late fees collected from Postal Life Insurance policy holders by the Department of Posts.
• Excess payment of ₹1.05 crore to an e-commerce biller by the Department of Posts due to lack of preventive controls in SAP systems.
• Non-recovery of ₹8.49 crore in penalties from Bharti Airtel Ltd. by Digital Bharat Nidhi for delayed roll-out of mobile sites in Assam and Sikkim.
• Non-recovery of ₹107.07 crore in Customer Acquisition Form penalties by the Department of Telecommunications, representing 75% of the total ₹143.09 crore levied for subscriber verification deficiencies.
• Non-compliance with Central Government Employees Group Insurance Scheme guidelines by the Department of Expenditure, including non-incorporation of interest and depletion of fund balances.
• Implementation issues in MeitY skill development schemes (ESDM, SDYAD, FSP), including multiple registrations, delays in certification, low placement levels, and pending reimbursement claims.
• Issues in the Common Service Centres 2.0 project, including weak financial sustainability of Village Level Entrepreneurs, high incidence of inactive centers, and incomplete integration of State e-services.

Also in the document

• CAG reported that 75% of the ₹143.09 crore in penalties levied on telecom operators for subscriber verification failures remained unrecovered as of March 2025.
• CAG noted that the Department of Posts failed to collect ₹78.92 crore in GST on insurance late fees over a period from July 2017 to December 2023.
• CAG observed that only 25% of the penalties levied for deficiencies in subscriber verification were recovered, undermining the deterrent effect of the penalty framework.