On Thursday, the Comptroller & Auditor General issued its report in the parliament. The report highlighted that Reliance Industries did not work accordingly as it dishonored some of the terms of its production sharing contract, which was done over the company’s blocks in the KG Basin off India's east coast.

According to the issued CAG report, it necessitated Reliance to give at least 25% to each of the contract area until which it was not permitted to enter the second and third exploration phases of the blocks.

Secondly, the report urged that the Directorate General of Hydrocarbons (DGH), who has been assigned the responsibility to act as a watchdog for oil and gas exploration and see the workings are going accordingly, should also be punished as it did not stopped Reliance Industries from proceeding towards the next phase of production in the light of earlier violation of the contract.

Thirdly, the CAG report questioned about the useless costs that the company incurred in the 2007/08 procurement activity in the area as according to the department the profit sharing mechanism could have worked out if the company revisited the grounds.

Fourth, the report said that the Oil Ministry did a mistake by not thoroughly reviewing the determination of contract area as according to same, RIL's development activities lacked guidance of initial development plan.