The Controller and Auditor General (CAG) of India has hit out strongly against state-run MTNL stating that the PSU is flouting corporate governance norms by not appointing specified number of independent Directors on its board as per Clause 49 of the listing agreement.

According to the CAG report, there is only one independent director on the board of MTNL, which operates telecom services in Delhi and Mumbai, as against the requirement of six independent directors.