Corporate titan of Indian Reliance Industries Ltd’s telecom business units have managed to get not yet payable welfare of about $530 million. Reliance got this huge benefit of $530 million from the government after it has allowed it to offer voice services over wireless broadband spectrum it had won in 2010 as per the Comptroller and Auditor-General of India (CAG) which was disclosed to the media and public during past day.

Government of India  Benefits Reliance Jio with Unjustified Benefit: CAG

Business empire of group of diverse companies under it Reliance turns out to be a conglomerate with a energy focused ownership single organization controlled by billionaire Mukesh Ambani bought the company called as Reliance Jio in the year 2010. Apparently, although yet to start commercial services perhaps Reliance Jio is the only company in India to have license for pan-India broadband wireless airwaves. Government’s auditor Comptroller and Auditor General of India (CAG) on Friday said that exposed the undue benefit of about $530 million saying that the telecommunications department had allowed the company to migrate from being just an internet service provider to a full services provider at a cost far lower than prevailing market prices. The current value of $1 is 63.7008 rupees which would make clear the huge amount Reliance Jio undue benefit.

Governments Telecommunications Department allowed Reliance Jio migration at price levels seen in 2001 when it was being done in the year 2015. This migration of Reliance Jio by the government’s lapses resulted Reliance conglomerate to get an undue advantage of 33.67 billion rupees which figures as 528.56 million for the unit of Reliance Jio which is purely just because  due to non-accounting of time value of migration fees.

Comptroller and Auditor-General of India (CAG) reports also disclosed that roll out obligations had not been met by the winners of the airwaves Reliance Jio even after four years of the of the auction. Responding to the Comptroller and Auditor-General of India (CAG reports and allegations Reliance Jio said that no favours had been given to it as they acted in accordance to the regulations set by the government of India which is expecting to its launch its telecommunication services except Global Mobile Personal Communication by Satellite later this year. Reliance Jio claims that it has acquired all their spectrum at market prices through open and transparent bidding processes, the conditions for which were same for all bidders.

Stay tuned with us for more live updates of business and economic markets. Press Ctrl + D to bookmark us in your web browser for easy navigation.