Govt probing report of under-declaration of RCom's revenues

Communications Minister A Raja today said the observations made by the special audit — which had found that Reliance Communications and its other subsidiaries under-reported revenues during 2006-07 and 2007-08 — were being examined by his ministry.

There was an under-reporting of Rs 1,000-1,500 crore to avoid payment of licence fees, and the government may have lost about Rs 250 crore due to this, telecom minister A Raja said during Question Hour in Parliament.

The Department of Telecommunications (DoT) had appointed special auditors to look into the financial accounts of five leading telecom companies for allegedly under-reporting revenues to the telecom regulator Trai during 2006-07 and 2007-08 to avoid payment of licence fees. Out of the five auditors, the one for RCom has submitted the report, the minister said.

DoT is examining the observations, the minister said, adding whatever action is needed will be taken by the end of January next year. A committee, headed by the DoT member (finance), is looking into the nearly 900-page report.

Responding to a question raised in the Lok Sabha on what action has been taken or is being proposed to be taken against the operator, Raja, in a written statement, replied the department shall raise additional demands, including interest and penalty, according to licence terms after the examination.