CAG raps oil ministry over KG-D6 audit

The CAG has pulled up the oil ministry for agreeing to conditions set by Reliance Industries over the KG-D6 audit. The new oil minister Veerappa Moily has promised to resolve all issues in a few weeks for the CAG to conduct a CAG audit of Reliance Industries KGD6, but here's a big speed breaker.

CNBC-TV18 learns on 26th October, days before the cabinet reshuffle, the CAG pulled up the oil ministry for agreeing to RIL's conditions for accepting and cooperating for a CAG audit. It has written that the CAG should have been consulted prior to the oil ministry making commitments to RIL.

The CAG goes on to right many of RIL's conditions are restrictive and impinge upon the CAG's basic rights and mandate to carry out audit as per the CAG Act and the Constitution.

It has told the oil ministry to remove these restrictive conditions unambiguously. Some of these conditions include the CAG refusing to agree to a time barred audit, restricting the audit only to accounting books and records, submitting the final report only to the oil ministry and not using the information and data received from RIL for any other audit the CAG may carry out in the future.

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