Mumbai, April 5: The Comptroller and Auditor General (CAG) has criticized Digital Bharat Nidhi (DBN), a rural telecom development fund under the Department of Telecommunications, for not recovering Rs 8.49 crore in penalties from Bharti Airtel. This amount has been pending for four years. The CAG report, dated April 2, 2026, highlighted the “delayed roll-out and non-recovery of penalties worth Rs 8.49 crore from the Universal Service Provider.”
Missed Deadlines Despite Multiple Extensions
The CAG’s report, presented in Parliament on Thursday, pointed out that DBN had signed an agreement with Bharti Airtel in December 2017 to enhance mobile coverage in Assam and Sikkim. The initial deadline for commissioning all sites was set for June 2019. Despite several extensions, many sites remain uninstalled.
Over 120 Sites Still Uncommissioned
The audit revealed that by April 2021, only 431 out of the approved 756 sites had been commissioned. DBN, previously known as the Universal Service Obligation Fund, later revised its target to 562 sites. However, as of April 2025, 124 sites still remained uncommissioned.
The delays resulted in Liquidated Damages (LD) and Non-Performance Penalty (NPP) totaling Rs 19.47 crore. The CAG noted that DBN managed to recover only Rs 10.98 crore, leaving an outstanding amount of Rs 8.49 crore even four years after the roll-out period ended.
CAG Points to Weak Contract Enforcement
The CAG emphasized the issue of weak contract enforcement and recommended that DBN expedite the commissioning of the pending sites. “The prolonged delays and pending recoveries indicate weak contract enforcement. DBN needs to expedite the commissioning of pending sites and ensure recovery of outstanding LD and NPP from Bharti Airtel Ltd,” the report stated.
Leave a Comment