Independent auditors to check RCom books

Comptroller and Auditor General of India (CAG) has deputed eight independent auditors to look

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into the books of telecom operator Reliance Communications (RCom).

The department of telecom (DoT) had asked CAG to appoint a special auditor to examine the books of RCom over allegations that it had diverted revenue earned from its mobile services to a subsidiary to avoid payment of licence fee.

According to people close to the development, CAG has asked the auditors to audit and investigate the revenues of RCom to find out the discrepancies.

DoT received number of complaints on the aggregate gross revenue reported by RCom. Trai has also provided their preliminary findings on it. The issue started after a report by investment broking firm Kotak Institutional Equities pointing to discrepancies in the company's reporting to stock exchanges and the telecom regulator.

According to reports, the telecom firm in the last fiscal had diverted revenue earned from its mobile services.

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