Reliance Communications fudged accounts in FY07 and FY08, says ministry
07 Dec 2009
Anil Dhirubhai Ambani Group firm Reliance Communications under reported its revenue during financial years 2006-07 and 2007-08, causing revenue loss of around Rs250 crore to the government¸ telecom minister A Raja said today.
Raja said a special auditor appointed by the government to look into misrepresentation of revenues by telecom firm has found that the country's No 2 wireless firm under-reported revenues to the Telecom Regulatory Authority of India.
"Reliance Communications under-reported its revenue during financial years 2006-07 and 2007-08," the ministry said, adding that the FY07 misrepresentation was at Rs1,000-1,500 crore.
The department of telecommunications (DoT), in April this year, had ordered a special audit on five telecom companies, including Bharti Airtel, Vodafone-Essar, Tata Teleservices, Idea Cellular and Reliance Communication, to look into alleged misreporting of revenue in order to evade tax and licence fee.
An audit by Parakh & Co had confirmed under-reporting by Reliance Communications in October, but the company denied this, DoT said.
According to the telecom ministry, the government might have lost Rs250crore on account of such under-reporting. "The observations are under examination," the minister added.
