RIL Fights With CAG Over Performance Audit Demand

CAG has demanded a performance audit in RIL as the former believes that company has been involved in malpractices. In response to the same, RIL has retaliated with a financial audit to be executed as a norm, not a performance audit that is not mentioned in the contract.

Moreover, the firm claims to follow international practices in their operations and has suggested an international consultant to review RIL practices. The issue for RIL audit popped up after CAG submitted a report criticizing oil ministry has compromised in contracts done with several exploration firms to which the ministry has ordered a probe a special audit of certain oil and gas blocks.

The government is still not convinced with the explanation provided by RIL and have reduced the company share in the development cost, which could be recovered in upcoming days from gas sales. The reason behind the move, as explained by ministry is stated to RIL being less efficient in providing the required output than it was planned thereby restricting RIL to recover the infrastructure costs.RIL has reverted  with its contract showcasing full recovery cost and has launched arbitration case against the government to prove its point.

Jeff Foster is a freelance writer and has done his graduation in Mathematics. He loves writing and reading about the recent events in the social media. He has been working as a freelance writer for the last four years. He has got special interest in politics of the Western world. He is a very special member of the News365Today’s Editorial team.

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