CAG to begin audit of RIL books

The Comptroller and Auditor General is likely to begin auditing of the accounts of KG Basin oil and gas fields of Mukesh Ambani-owned Reliance Industries Ltd. from this month. CAG has been asked to do special audit of not only RIL but also Cairn India’s Rajasthan block and British energy firm BG Group-operated Panna/Mukta and Tapti fields, sources in the Petroleum and Natural Gas Ministry said. The audit becomes significant in view of the recent allegations against former Directorate General of Hydrocarbons V. K. Sibal for showing undue favour to RIL in exchange for certain favours to his kin. CAG was asked by the Petroleum and Natural Gas Ministry to audit the accounts of RIL, which is facing allegations of gold-plating gas field costs, which has increased four-fold to $8.8 billion. CAG has so far sought from RIL a list of relevant documents for KG D-6 fields, as it has sorted out issues like legal tenability of audit of production sharing contract and enforceability of corrective steps.