RIL may have replied on CAG audit to Oil Min & DGH

CNBC-TV18's exclusive sources indicate that Reliance could have sent a voluminous reply on the Comptroller & Auditor General's (CAG) audit to the oil ministry and the directorate general of hydrocarbons (DGH). The reply cities 'misrepresentation of reading on KG D6', shares CNBC-TV18's Nayantara Rai.

Sources hint that on Thursday, RIL has written a reply, stating that baseless gold platting allegation is actually handiwork of corporate rivals. The reply is believed to hold that the draft CAG report has nothing to suggest gold platting; wherein Reliance was indicating and pointing fingers towards Reliance ADAG group, going back to the front page advertisement that had come out in 2009 by that particular group, where RIL seems to be pointing its fingers on. The report is believed to go on to say that the question raised by CAG on reasonableness, a certain procurement contract is only for 6% of the contracts for the entire project; it is only for a small figure of Rs 1,500 crore. RIL is believed to say that CAG has actually confused authenticity of expenses with the desirability of incurring those expenses, adding it is totally different. It holds that CAG should only be looking at the authenticity of the expenses and then also goes on to believe that CAG is completely confused and disillusioned by believing that by incurring a higher cost, it actually benefits RIL when it actually reverses the case, if RIL incurs a lower capex the profit will be higher. Sources also says the reply by RIL explain that CAG actually has six months carrying out this audit at Reliance premises where it send eight representatives, given extensive access to Reliance