Reliance Communications accounts to be audited by the government

Reliance Communications accounts to be audited by the government

Indian government has announced that they would now do a special audit on the books of Reliance Communications and its subsidiary companies.

These audits would be done because of the allegations in the market that the company diverted revenues earned from its mobile services to a subsidiary to avoid paying high price for the license fee and spectrum charges.

Indian minister of state for telecom and IT, Jyotiraditya Scindia had this to say on the new developments: “Parakh & Co have been selected as auditor to carry out the special audit of Reliance Communications, Reliance Telecom and Reliance Communications Infrastructure for 2006-07 and 2007-08. The special auditor will verify whether there is any evasion of license fees”.

The government has already chosen the auditor for this investigation from the list of companies provided by Comptroller and Auditor General of India.

Reliance on their part have claimed that they have not done anything wrong and their books are already audited by BSR & Company.