Anil: Dispelling doubt

New Delhi, Oct. 14: Reliance Communications chief Anil Ambani today met telecom minister A. Raja to explain the company’s auditing practices, under fire following allegations of irregularities by a government-appointed auditor.

Parekh & Company, the auditor, recently revealed 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.

DoT officials said R-Com had asked the telecom ministry to provide a copy of the audit report to assess the allegations. Sources said Ambani also met Prime Minister Manmohan Singh. However, no official confirmation was available.

Refuting all allegations, an R-Com spokesperson said rivals had leaked the audit report. “R-Com is in full compliance with licence terms and conditions,” the spokesperson said.

A four-member committee of the DoT will now examine the report; officials said market regulator Sebi was set to look into the accounts of R-Com. “Sebi has asked the telecom ministry for details of the R-Com audit report. It may also conduct a separate investigation into the accounts of R-Com,” said officials.

If the violations are confirmed, the telecom firm and its auditors — BSR & Company, a member firm of KPMG International, and Chaturvedi & Shah, a member firm of Nexia International — would face penalties.

The Institute of Chartered Accountants of India — the nodal body for regulating auditors — is also looking into the matter. “We will take action against R-Com’s chartered accountants if any wrongdoing is found,” said Uttam Agarwal, president of the ICAI.