"The undue benefit granted to the contractor (RIL) is huge, but cannot be quantified," said a report by the the Comptroller and Auditor General of India (CAG of India).
Mukesh Ambani's Reliance allegedly received special favour from the oil ministry in projects of the country's largest gas fields in 2004-06. The CAG report also claimed that Mukesh Ambani owned Reliance Industries Limited (RIL) was allowed to violate terms of the contract with the government for Andhra offshore fields.
The Andhra Pradesh offshore fields, India's biggest gas discovery in recent years and the CAG draft report states that the ministry allowed RIL to increase its capital expenditure plan to start production from there.
Earlier the ministry refused to comment on the CAG report as the ministry spokesperson said, "However, at this stage, based on the information provided, we are unable to comment on the reasonableness, or otherwise, of the increase in cost, both overall and in respect of individual line items."