RCom & its units under reported revenues

 
“There has been under reporting of the revenues in the range of Rs 1,000 crore and Rs 1,500 crore by the telecom firms to avoid payment of license fees. The government might have lost about Rs 250 crore due to this,” Telecommunication Minister A raja told the Lower House during the Question Hour.

The Department of Telecommunication had appointed five Special Auditors to look into financial accounts of RCom, Reliance Telecom Limited (RTL), Reliable Internet Services Limited (RISL)— since merged with the RTL and Reliance Communications Infrastructure Limited (RCIL) in the wake allegations that these firms had allegedly indulged in fudging of accounts and under-reporting of revenue to the Telecom Regulatory Authority of India (TRAI) during 2006-07 and 2007-08. Along with RCom, RTL and RCIL are owned by Anil Ambani Group. Out of the five Special Auditors only one has so far submitted his report, he added.

The auditor has observed that the three firms—RCom, RTL and RCIL—as holders of the Unified Access Service Licences (UASL)—under reported their revenues to the TRAI during 2006-07 and 2007-08. Raja said. “The observations are under examination of the Telecommunication Department,” he added.

A committee set up by the Telecommunication Department is examining the report, the minister said adding as a follow up action whatever steps needed to be taken would be taken. “The Department will raise additional demands including interest and penalty as per licence terms on the concerned licencees after examination,” Raja said.

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