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R Com reports less revenue, Govt plans action

08 Dec 2009 Evaluate

The government said in the Lok Sabha that a special audit has observed that Reliance Communication and its other subsidiaries under reported revenues during 2006-07 and 2007-08. There was an under reporting of Rs 1000 crore to Rs 1500 crore by the telecom firms, to avoid payment of licence fee, and the government may have lost about Rs 250 crore due to this.

 

The Department of Telecom (DoT) had appointed special auditors to look into financial accounts of five leading telecom companies for allegedly indulging in fudging of accounts and under-reporting of revenue to the telecom regulator TRAI during 2006-07 and 2007-08 to avoid payment of licence fee. Out of five auditors the one for R Com has submitted the report.

 

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 to the TRAI during 2006-07 and 2007-08. The observations are under examination of the DoT & whatever action needed, would be taken by the end of January next year.

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