Press Esc to close
Friday 30 September 2016
News updated at 10:16 PM IST
Weather
Max: 29.4°C
Min : 21.4°C
In Bengaluru
Generally cloudy

CAG to probe propriety of RIL spending on KG-D6

New Delhi, April 5, 2013, PTI:

As CAG gets ready to resume audit of Reliance Industries’ spending on KG-D6 gas block, the Oil Ministry has set rules of engagement for the scrutiny saying the auditor will examine propriety of expenses as has been set out in the Production Sharing Contract (PSC).

The Comptroller & Auditor General of India (CAG), which in January-end suspended audit of spending on the flagging KG-D6 block following differences with RIL over scope and extend of scrutiny, is likely to resume the audit next week after contentious issues were resolved.

Official sources said the ministry and CAG are in agreement that the there will be no performance audit of RIL. RIL too had been stressing that the official auditor cannot do a performance audit of a private firm and that the PSC provides for only a financial scrutiny.

The ministry, they said, this week wrote to RIL restating this position and asked the company to cooperate and provide full and complete access to records and documents.

The audit, it wrote, would examine propriety of expenditure vis-a-vis the provision of PSC, with full access to records.

This follows intense negotiations between RIL, CAG and the Oil Ministry over the past two months that finally resulted in an agreement this week. Oil Secretary Vivek Rae had on Wednesday stated that all issues have been resolved and CAG is set to resume audit.

CAG had on March 12 written to Oil Ministry that its “audit (of KG-D6) would be the financial and propriety audit” and that the purpose of its scrutiny was to ensure that “the government’s financial interests have been safeguarded”.

Sources said the ministry wrote to RIL that CAG has confirmed that the audit of KG-D6 for 2008-09 to 2011-12 under Section 20 of the C&AG (DPC) Act, 1971 with the scope, extent and manner as specified in Article 25 and Appendix C of the PSC. These provisions of PSC provide for a government-appointed auditor inspecting and auditing all records and documents supporting costs, expenditures, expenses, receipts and income.


Go to Top

Photo Gallery
A hair stylist Kailash Kashid creates a special hair cut slogan of Maratha Kranti Morcha...

A hair stylist Kailash Kashid creates a special hair cut slogan of Maratha Kranti Morcha...

Actor Salman Khan plays with his sister Arpita's kid at an event for the tie-up between...

Actor Salman Khan plays with his sister Arpita's kid at an event for the tie-up between...

Artisans work on a giant model of Hindu god Ganesh during preparations for the upcoming Durga Puja..

Artisans work on a giant model of Hindu god Ganesh during preparations for the upcoming Durga Puja..

The palace witnessed very little visitors on the day and thus children enjoy playing at the...

The palace witnessed very little visitors on the day and thus children enjoy playing at the...

Temples submerged at Gwari Ghat due to floods caused in Narmada River by heavy rains...

Temples submerged at Gwari Ghat due to floods caused in Narmada River by heavy rains...

Indian Army vehicles move towards border areas in Akhnoor sector on India Pakistan Border...

Indian Army vehicles move towards border areas in Akhnoor sector on India Pakistan Border...

BJP activists celebrate the Indian army's Surgical strikes along the Line of Control in PoK...

BJP activists celebrate the Indian army's Surgical strikes along the Line of Control in PoK...

all-party meeting in New Delhi on Thursday following Indian army's surgical strikes along the LoC...

all-party meeting in New Delhi on Thursday following Indian army's surgical strikes along the LoC...

People celebrate after Indian army's Surgical strikes along the Line of Control...

People celebrate after Indian army's Surgical strikes along the Line of Control...

Artists practice the Garba dance ahead of the Navratri festival in Ahmedabad...

Artists practice the Garba dance ahead of the Navratri festival in Ahmedabad...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523