Reliance Industries says not obliged to provide past year documents to CAG
Disagreements over scope of audit cropped up on the very first day the Comptroller and Auditor General of India (CAG) began to the second round of audit of spendings on eastern offshore KG-D6 fields with RIL alleging that the auditor was not confirming if the accounts scrutiny would be as per the provisions enshrined in the Production Sharing Contact (PSC).
In a January 22 letter, RIL reminded Oil Ministry of the written assurance the ministry gave that "CAG would follow the audit process set out in Section 1.9 of the Accounting Procedure of the SPC and that this would not be a performance audit of the contractor."
However at the January 9 audit kick-off meeting," CAG made a number of assertions that are contradictory to the assurances given to us by the Ministry," it wrote claiming CAG audit team in the meeting verbally agreed to conducting the audit as per PSC provisions but "deleted" such references in the minutes of the meetings.
RIL said CAG in a January 18 letter to it stated that the audit would be conducted under the PSC provisions but also "goes on to refer to the scope, extent and manner of the audit being as laid down under the CAG (DPC) Act which, neither we are aware of nor bound to follow."
"We believe
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