Reliance Industries Ltd.

In a major relief to Mukesh Ambani owned Reliance Industries, Oil Ministry has given nod to company’s plans for raising natural gas output from the flagging KG-D6 block and also agreed that Comptroller and Auditor General of India (CAG) cannot do a performance audit of the company. The Ministry clarified that that an audit by the Comptroller and Auditor General of India (CAG) of its spending on KG-D6 block has to be a financial audit and not a performance audit.

However, the Ministry also wrote to Principal Director of Audit (Economic & Service Ministries), CAG stating that “Subject to certain conditions, RIL has agreed for an audit under Sector 1.9 of Accounting Procedure to the PSC by CAG”.

The Ministry withheld approvals to RIL's investment plans on the condition of company first agreeing to CAG doing a second round of audit of KG-D6 field for 2008-09 to 2011-12 periods. However, relenting to company’s proposition, the ministry gave approval.

Mukesh Ambani owned company showed it readiness for a CAG audit provided done under the PSC which provides for checking of the contractor's accounts in order to verify the charges and credits and not the extent of questioning efficacies of processes or technology used in the complex deep sea operations.