CAG indicts Modi govt for favouring industrialists, causing loss of Rs.5,000 crore

By on March 27, 2014

The Gujarat Assembly’s budget session has been drawn into the mire over controversies one after the other. If the recent porn scandal, allegedly involving two BJP MLAs, was not enough, the Opposition cornered the Narendra Modi government in the assembly again on Thursday over a Comptroller and Auditor General (CAG) report which was yet to be tabled in the House.

Headlines Today accessed the CAG draft report which indicts the Gujarat government for favouring some big industrialists of the country. The report would be tabled in the assembly on Friday.

The report charges Modi with favouring certain big industries, including Gautam Adani’s Adani Energy and Mukesh Ambani’s Reliance Industries. Owing to the undue benefits passed on to these two companies, the Gujarat State Petroleum Corporation (GSPC) incurred massive losses.


The CAG report pegs the loss at nearly Rs.5,000 crore. It says that GSPC bid for the KG block without assessing the financial and technical issues.


The CAG report says that Reliance Industries installed control and riser platforms in parts of KG block licensed to GSPC. They did so without the consent of the government. As a result, GSPC would be responsible for the safety and security of RIL’s structure for its entire life period.

The report also says how Adani Energy received undue benefit of over Rs.71 crore. This happened after GSPC sold them purchased gas at a much lower price that they bought it for.


The Opposition has now taken up the matter with Governor Kamla Beniwal.


Gujarat Congress president Arjun Modhwadia said, “The CAG clearly exposes Modi government’s corruption… how they have favoured certain industrialists. We have approached the governor that Modi government is avoiding our questions by tabling the report on the last day. What is Modi government afraid of?”

However, the state government rubbished the indictment by the CAG.

Gujarat government spokesperson Jaynarayan Vyas said, “The CAG report means nothing. It will be tabled, then it will be given to Public Accounts Committee – which is headed by the MLA from the Opposition. They will then summon the relevant departments and prepare their own report. It is therefore hazardous to believe everything the Opposition is saying.”

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