RCom Chief Meets Telecom Minister A Raja

by CXOtoday Staff    Oct 15, 2009

Following allegations of irregularities by a Department of Telecommunications-appointed auditor, Reliance Communications chief Anil Ambani yesterday met Telecom Minister A. Raja to explain the company’s auditing practices. 

The auditor, Parekh & Company, recently alleged that R-Com did not show revenues of Rs 2,799.19 crore for the financial years 2006-07 and 2007-08, costing the government Rs 315.9 crore in terms of licence and spectrum fees that are charged as a percentage of revenue.

However, a RCom spokesperson has denied any financial irregularities saying, "R-Com is in full compliance with licence terms and conditions". According to sources, RCom has asked the telecom ministry to provide a copy of the audit report to assess the allegations.

Meanwhile, even as DoT has set up a committee to examine the report; market regulator Securities and Exchange Board of India (Sebi) has reportedly asked the telecom ministry for details of the R-Com audit report. Sebi may also conduct a separate investigation into the accounts of R-Com, sources said.

RCom’s company auditors are BSR & Company, a member firm of KPMG International, and Chaturvedi & Shah, a member firm of Nexia International.

Related Link

RCom Fudged Revenues, Says DoT Auditor