The Central Vigilance Commission (CVC), an anti-corruption organisation of the government, has ordered an investigation against officials of the Department of Telecom (DoT), who have allegedly been involved in a case pertaining to under-reporting of revenues by Reliance Communications (RCOM). The CDMA operator has allegedly evaded payment of Rs 352 crore of revenue share on Rs 3,520 crore by “adopting unfair means”.

Comptroller and Auditor General of India (CAG), who audits all receipts and expenditure of the government, states and other government bodies, is also learnt to be looking into the matter. In a letter written to the DoT on November 17, CVC ordered the investigation into charges of “corruption and irregularities” against some DoT officials.

“In exercise of powers conferred on the CVC - the Commission hereby directs that an investigation be conducted on the charges/irregularities pointed out in the enclosed complaint. The report of this investigation should be submitted to the Commission within 12 weeks of receipt of this order,” CVC director Ranvir Singh said in the letter, a copy of which is with ET.

An email sent to RCOM in this regard on Monday remained unanswered. A member of Rajya Sabha had approached the CVC with complaint against the company, saying that RCOM is “involved in swindling government running into several crores of rupees.” Earlier, GSM association COAI had also raised the issue.

The complaint by the Rajya Sabha member claims that RCOM has paid revenue share on the “manipulated gross revenue” of Rs 15,812 crore stated to be earned between June 2007 and June 2008 as per the documents filed by RCOM with telecom regulator Trai.

However, in their website, RCOM has shown revenue earned as Rs 18,332 crore, “leading to non-payment of revenue share on Rs 3,520 crore.”

This CVC order comes within days after the DoT had sent a letter to RCOM, seeking explanation on the telco’s alleged move to show its non-voice revenues as those incurred from its Internet services operations.

ET reported this development in its November 13 edition and had first reported about alleged understatement of revenues on July 24.

Source: ET