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This Article is From Sep 10, 2011

Won't ignore CAG report, says BJP after Varun Gandhi questions silence

Won't ignore CAG report, says BJP after Varun Gandhi questions silence
New Delhi: A day after Varun Gandhi questioned its silence on the government auditor's report indicting Reliance Industries, the Bharatiya Janata Party (BJP) today said there was no question of ignoring the the report.

The young BJP MP had, just a day after the report was tabled in Parliament, tweeted saying, "CAG indicts Reliance. Clear violation of govt contract terms. Govt & Opposition both silent. Wonder why?!"

Reacting to the Mr Gandhi's tweet, a clearly embarrassed BJP said, "That was the immediate reaction of Varun, I think...That was his reaction but there is no question of undermining the importance of the findings of the CAG."

"There is no question of leaving anybody who is involved in the basin episode...this will be inquired into...there is no question about it", said senior party leader M Venkaiah Naidu.

The report by the Comptroller and Auditor General (CAG) has indicted Reliance Industries for violating the terms of its contract in exploring gas fields in the KG Basin. The CAG also faults the Petroleum Ministry and its regulatory arm, the Directorate General of Hydrocarbons (DGH).

In Reliance's case, the report says that the government and Reliance both ignored the 'production-sharing contract', allowing the company to hoard exploitation acreage. The contract said that Reliance should have surrendered 25 per cent of the total area outside its discovery area. Instead, the entire block was treated as a discovery area so it remained with Reliance.