Friday, September 9, 2011

CAG report on Reliance: Varun Gandhi questions BJP's silence












New Delhi:  BJP MP Varun Gandhi has once again taken the contrarian view. He has questioned his own party's silence over government auditor's report on the Krishna-Godavari river basin that indicts Reliance.

A day after the report was tabled in Parliament, Varun has tweeted saying, "CAG indicts Reliance. Clear violation of govt contract terms. Govt & Opposition both silent. Wonder why?!"

A new report by the Comptroller and Auditor General (CAG) has indicted Reliance Industries for violating the terms of its contract in exploring gas fields in the KG Basin. The CAG also faults the Petroleum Ministry and its regulatory arm, the Directorate General of Hydrocarbons (DGH).

In Reliance's case, the report says that the government and Reliance both ignored the 'production-sharing contract,' allowing the company to hoard exploitation acreage. The contract said that Reliance should have surrendered 25 per cent of the total area outside its discovery area. Instead, the entire block was treated as a discovery area so it remained with Reliance.

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