Digvijaya slams CAG

Digvijaya slams CAGDigvijaya Singh, the general secretary of Congress party has criticized the Comptroller and Auditor General of India (CAG) soon after it pointed out Oil Ministry for agreeing to terms laid down by the Reliance Industries relating to an audit of the company's KG-D6 oil field.

An arbitral panel is in place teo resolve the differences between the oil ministry and the company and two came to an agreement over the audit. The two sides have a disagreement over the recovery of cost for developing the eastern offshore KG-D6 gas fields. The Supreme Court had approved the setting up of the arbitral panel for the resolution of the dispute. Justice SS Nijjar has disposed a plea from RIL and said that the two arbitrators will appoint a third arbitrator and aim to resolve their differences.

The government had maintained that there is no dispute and no arbitral panel is required for the matter. However, it has now appointed Justice Khare as its nominee. The government is now looking to resolve the issue through arbitration.

Oil Minister Jaipal Reddy has been asking the company to stat sharing the accounts with the CAG. The block's management committee is set to meet soon to discuss matters. The minister had asked the company to provide data for audit last month. Reliance Industries Ltd has agreed to share the KG-D6 accounting details with the CAG under the purview of the production sharing contract (PSC).