This ad will auto close in 10 seconds

CAG raps Oil Ministry over Reliance KG-D6 audit

Last Updated: Friday, November 2, 2012 - 23:28

Zeebiz Bureau

New Delhi: The Comptroller and Auditor General of India (CAG) has pulled up the Oil Ministry for agreeing to the conditions laid down by Reliance Industries for the audit of its KG-D6 oil field. The auditor is reported to have told the ministry that it should have been consulted before agreeing to the terms of Reliance.

According to NDTV, RIL wanted the CAG audit report of the KG-D6 basin to be kept within the Oil Ministry and not made public and tabled in Parliament, as is the procedure. The company also wanted that the audit should be carried out in its own premises and that Reliance Industries would give no other documents apart from those prescribed in the KG-D6 contract. The Mukesh Ambani led company also wanted an assurance from the ministry that no "exceptional" procedure be inserted in the CAG audit.

These conditions were found to be too restrictive by the CAG and it has written a letter to the Oil Minister on Friday asking why the ministry had agreed to the conditions of Reliance Industries for the audit of its KG-D6 gas field.

In the letter, the CAG is also said to have told the ministry that it always summons relevant documents and papers from the Oil Ministry as well as the operator relating to company audits. The CAG said that the final audit report will be presented to Parliament, as per the law.

Oil Minister Veerappa Moily has said that the ministry will try to solve the situation as early as possible.

First Published: Friday, November 2, 2012 - 23:28
comments powered by Disqus