Reliance Industries got $530 million undue benefit says CAG

Mangalore Today News Network

MUMBAI, May 10: Reliance Industries Ltd’s telecoms unit got an undue benefit of about $530 million after the Indian government allowed it to offer voice services over wireless broadband spectrum it had won in 2010, the government auditor said on Friday.

 

The energy-focused Reliance conglomerate, controlled by billionaire Mukesh Ambani, bought the company now known as Reliance Jio in 2010. It is the only firm in the country to have a licence for pan-India broadband wireless airwaves, though it has yet to start commercial services.

However, the auditor said the telecommunications department had allowed the company to migrate from being just an internet service provider to a full services provider at a cost far lower than prevailing market prices. The migration had been allowed at price levels seen in 2001.