The Comptroller and Auditor General (CAG) has pulled up Digital Bharat Nidhi (DBN), a rural telecom development fund under the Department of Telecommunications, for failing to recover Rs 8.49 crore in penalties from Bharti Airtel, pending for the past four years. "Delayed roll-out and non-recovery of penalties worth Rs 8.49 crore from Universal Service Provider," the CAG report dated April 2, 2026, said.
Missed Deadlines Despite Multiple Extensions
In its report tabled in Parliament on Thursday, the CAG noted that DBN had entered into an agreement with Bharti Airtel in December 2017 to provide mobile coverage in Assam and Sikkim, with a deadline of June 2019 for commissioning all sites. Despite multiple extensions, several sites remain uninstalled.
Over 120 Sites Still Uncommissioned
The audit observed that only 431 of the approved 756 sites had been commissioned by April 2021. DBN, formerly known as the Universal Service Obligation Fund, subsequently revised the target to 562 sites. However, 124 sites remained uncommissioned as of April 2025.
The delays attracted Liquidated Damages (LD) and Non-Performance Penalty (NPP) amounting to Rs 19.47 crore. "DBN recovered only Rs 10.98 crore, leaving Rs 8.49 crore outstanding even four years after expiry of the roll-out period," CAG said.
CAG Points to Weak Contract Enforcement
Highlighting weak contract enforcement, the CAG recommended that DBN expedite the commissioning of pending sites. "The prolonged delays and pending recoveries indicate weak contract enforcement. DBN needs to expedite commissioning of pending sites and ensure recovery of outstanding LD and NPP from Bharti Airtel Ltd," the report said.
