The accounts of Reliance Communications, one of India's biggest companies, have been questioned by a government-commissioned audit that alleges the group under reported its revenue to the government and paid too little in licence and spectrum fees.
The auditor, Parakh and Co, was asked by the government to examine a “gap” between revenue from wireless services that Reliance, the country's second- largest mobile operator, reported to investors in the financial year ending March 2008 compared with wireless revenue reported to the government.
“Our report reveals that there has been under reporting of revenue for the purpose of payment of revenue share, and underpayment of licence fee and spectrum fees,” said the executive summary of the report, seen by the FT.