MUMBAI: The Reliance Industries Ltd's telecom unit has received an excessive benefit of approximately $530 million after the Indian government permitted it to offer voice services over wireless broadband range.
The Reliance Industries Ltd got permission to offer voice services over wireless broadband in 2010.
According to the comptroller and auditor general of India in his report, the government's slips resulted "in an undue advantage of 33.67 billion rupees ($528.56 million)" for the unit, Reliance Jio, "due to non-accounting of time value of migration fees. It also included that roll out of compulsion had not been met by the winners of the airwaves, even after four years of auction.
Whereas, the auditor said the telecommunications department had allowed the company to drift from being just an internet services provider to a full services provider at a cost far lower than existing market prices. The migration had been permitted at price levels since2001.
However, Reliance Jio in its statement said, “We have acquired our entire spectrum at market prices through open and transparent bidding processes, the conditions for which were same for all bidders.”