RComm inflated revenues: Auditor

• tanvi_singh
• October 13, 2009

Anil Ambani’s led Reliance Communications Ltd (RComm), the country’s second-largest mobile operator, inflated its 2007-08 wireless revenues by Rs 2,915 crore to shareholders to hike its valuation, while simultaneously under-reporting the figures to telecom regulator Trai, a special audit commissioned by the department of telecom has found.

As a result, RComm made an “under-payment of licence fee” of Rs 315.9 crore in 2006-07 and 2007-08, notes the audit report, a copy of which is in FE’s possession. The reason given by RComm to explain the discrepancy between the wireless revenue reported to shareholders and that disclosed to Trai “is not correct or complete”, the audit by Parakh & Company states.

For its part, RComm has denied any wrongdoing and described the contents of the audit report as the handiwork of “corporate rivals”. DoT officials confirmed receipt of the report, but said they are yet to examine it.
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• Last Modified: October 13, 2009
• Filed Under: Latest News, MARKETS, NATION, WORLD