Anil-horribilis

13 October 2009 By Una Galani Follow @ugalani

A leaked audit alleging that Anil Ambani s telecoms group underreported revenues relating to government licences comes as the Indian tycoon is due to face his brother in court in a dispute over gas pricing. The strains on Ambani’s investor relations are mounting.

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A special audit commissioned by the Indian government has alleged that Reliance Communications, the telecoms group controlled by billionaire Anil Ambani, underreported revenues relating to licence and spectrum fees, according to the Financial Times.

Ambani's spokesperson said: A copy of the report has not yet been received by RCom. There is no irregularity or discrepancy in RCom's audited accounts. An appropriate response will be provided as and when the Department of Telecom … seeks an explanation.

The RCom investigation was ordered last December by India's DoT following the publication of a broker report in July 2008 claiming that RCom reported higher revenues to the market than to the Telecom Regulatory Authority of India.

Indian telecom operators are expected to pay between 610% of their revenues to the government as licence fees and 210% as spectrum charges.

The DoT also subsequently ordered special audits of all of India's top telecom firms, including Bharti Airtel, Vodafone Essar, Tata Teleservices and Idea Cellular, the findings of which have not yet been made public.

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