Reliance Communications has asked the DoT to reject the report submitted by independent auditor Parakh & Co appointed by the government to review its accounting books.

According to RCom, the report was based on uncorroborated facts and contrary to the all norms of audit and professional conduct.

Earlier the auditor had said that RCom resorted to under reporting of revenues to the tune of Rs 2,799 crore. This had benefited the company in saving costs on annual licence fees and spectrum charges which are directly linked to the revenues.

Rcom’s latest demand is in response to a reply sought by DoT from the company over th findings of the report.

Rcom cites that the auditor did not meet any of its executives.

RCom, in its response to the DoT, said, “It is apparent that this finding of the special auditor about the income of the RCIL (Reliance Communications Infrastructure Ltd) from services such as R-Connect, R-World, Internet would have been deleted if the auditor had discussed the matter with the DoT that had already examined the arrangement between RCom and RCIL and that had concluded that the arrangement is permissible. If RCIL earns revenues from its legitimate activities, those revenues cannot be said to constitute the revenue of RCom. RCIL's payments to RCom for use of RCom resources are already included in calculations of adjusted gross revenue and licence fee.”