The RIL has committed enough and glaring willful improprieties in the execution of its KG-D6 contract that the Narendra Modi government has sufficient grounds to terminate its contract and allow any other company or the government-owned Oil and Natural Gas Corporation (ONGC) to produce gas from these fields.
The Reliance has created an artificial shortage of natural gas in this country by bringing down the production from KG-D6 fields to below 10%, with the sole aim of forcing the government to import it at a very high price. Infact this company has deliberately kept its production much below the target since 2010-11. Read More
Remember the coal mine allocation scam? It was sparked off because a multi-edition national newspaper chose to make public a CAG ‘pre-final’ report on the allocation on its front page. There was a veritable public outcry, and other media houses entered the race to scoop each other out.
There’s this other matter of detail to consider: the newspaper that first featured the coal mine allocation scam had reported some of the CAG’s disclosures on the RIL-government collusion nearly three weeks before the lawyers held their press conference, that is, on May 29 and May 30. But this scoop the newspaper consigned it to its inside pages. Though it is the editor’s prerogative to weigh the relative importance of stories and decide on their slots, there is undoubtedly a sharp discrepancy in that newspaper’s treatment of the coal scam and CAG’s indictment of RIL. Read More
After the 2G spectrum allocation scam of the UPA Government, another major telecom scandal in the allocation of 4G spectrum (BWA) has come to light by the recent CAG report. In fact, AAP leader and senior lawyer Prashant Bhushan has filed a PIL in the Supreme Court seeking cancellation of Reliance Industries’ telecom license and a through criminal investigation. Supreme Court had issued notice to Government and Reliance on that petition on 9th May 2014.
The factum of the scam is this. The UPA Government in March 2013 allowed a back-door entry of Reliance Jio Infocomm into voice telephony in violation of the judgment of the Supreme Court in the 2G case. This was done at the price discovered in 2001 of Rs 1,658 crores for a pan-India licence, which is the same price that was struck down by the Supreme Court in the 2G judgment because of having caused a huge loss to the public exchequer. Read More
The Mukesh Ambani-controlled Reliance Industries Ltd (RIL) could have exceeded the approved spending limit at its KG-D6 block and under-utilised the facilities, the Comptroller and Auditor General (CAG) of India is learnt to have found in its audit of the company's books.
CAG has also said in the report that the operator drilled only 18 wells, against 22 required under the initial development plan. It has added that the operator had not started Phase-II development works until December 2013. "It (the operator) had stated the production would be closed by 2015-16, if revised field development plan was not approved. It would, thus, appear that the operator has decided not to drill remaining wells, leaving the government with a fate-accompli situation."
Looking into the financial aspect, the auditor has said on-shore terminal (OT) was constructed at $827.68 million, against an estimated cost of $550.87 million. And, due to lower production, 50 per cent of these facilities remained unutilised. About half the total subsea-manifold facilities, installed at a cost of $80.19 million, against an estimated $70.81 million, were also unutilised, an official added.