Reliance Industries Ltd's plans to raise output of natural gas from the dwindling KG-D6 fields has not been given green signal as the company has not allowed the Comptroller & Auditor General of India (CAG) to audit of its accounts.

GC Chaturvedi, secretary to the Petroleum & Natural Gas Ministry, has told Pulok Chatterji, principal secretary to the prime minister, that the petroleum ministry would not give a green signal to any permission for RIL's flagship KG-D6 fields in view of its denial to submit its accounts for CAG scrutiny.

Chaturvedi also said that the DGH-headed KG-D6 block oversight committee had agreed to RIL's all development proposals for the gas fields, but added that the could not be finalized due to the company's refusal to let second round of audit by the national auditor of RIL's expenditure on the eastern offshore of the KG-D6 block.

A source familiar with the meeting, quoted an unnamed official saying, "The Company has been raising frivolous issues, including jurisdiction of the Petroleum Ministry as well as the CAG in auditing its accounts."

The management committee of KG-D6 block had approved the company's capital spending plans for the block in August, but the resolution has yet to be signed. Moreover, RIL made at least three discoveries in the gas block, but didn't declare them as commercial - a step obligatory to start production from them.

Sources say that RIL is arguing that the CAG has no powers to audit a private company.