Govt may act on RCOM audit, Raja tells Parliament | india | Hindustan Times
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Govt may act on RCOM audit, Raja tells Parliament

Communications Minister A. Raja on Monday informed the Lok Sabha that the Department of Telecommunications was examining a special audit that said Reliance Communications and its subsidiaries under reported revenues during 2006-07 and 2007-08 and might act on it soon.

india Updated: Dec 07, 2009 22:14 IST
HT Correspondent

Communications Minister A. Raja on Monday informed the Lok Sabha on Monday that the Department of Telecommunications (DoT) was examining a special audit that said Reliance Communications (RCOM) and its subsidiaries under reported revenues during 2006-07 and 2007-08 and might act on it soon.

“Whatever action is needed, it would be taken by the end of next January,” Raja said in Lok Sabha during Question Hour.

There was an under reporting of Rs 1,000 crore to Rs 1,500 crore by the telecom firms, to avoid payment of licence fee, and the government may have lost about Rs 250 crore on account of this, the minister said.

A committee headed by Member (Finance), DoT is looking into the nearly 900-page report.

RCOM has denied charges of under-reporting revenues made in the report by Parekh and Co, the auditor appointed by DoT.

“RCOM strongly affirms that it anticipates no additional financial liability towards licence or spectrum fee. The Special Auditor’s report estimating alleged additional liability of Rs. 316 crore is incorrect, hopelessly biased, one-sided and prejudiced,” it said in a statement.

DoT had appointed special auditors to look into financial accounts of five leading telecom companies. Of these, the auditor that examined RCOM has submitted its report, Raja said.

“The auditor has observed that three companies — RCom, Reliance Telecom and Reliance Communications Infrastructure Ltd (all belonging to Anil Ambani group) — under reported their revenues...” he said.