Reliance Communications, headed by Mr. Anil Ambani, has been charged with financial wrongdoings by the government, on Monday. Government has alleged that the company has under reported its revenues and has caused a loss of Rs. 250 crore to the exchequer.

Telecom minister, Mr. A Raja has informed the Parliament that RCOM, India's second-largest mobile operator, has been under-reporting its revenues by up to Rs 1,500 crore to the sector regulator TRAI for the years 2006-07 and 2007-08. The department of telecom (DoT) has been appointed to examine the issue.

RCOM whose share prices fell by 1.7% to Rs. 175.90 on Monday, has denied the allegations. In statement the company said, "RCOM strongly affirms that it anticipates no additional financial liability towards license or spectrum fee. The special auditor's report is incorrect, hopelessly biased, one-sided and prejudiced."

Parakh & Co, which has been appointed as the auditor by the telecom ministry to examine the books of the company and its subsidiaries, has informed through a report that the RCOM has failed to show revenues of Rs 2,799.19 crore, which has caused losses of Rs 315 crore to the government in terms of the license and the spectrum fees. These fees are charged as a percentage of a company's revenue.

Moreover, the auditor has also accused the company of presenting the wrong facts to the shareholders, it said RCOM had inflated wireless revenue by 23%, which is Rs 2,915 crore, to Rs 15,213 crore in the year 2007-08.

After the RCOM the other mobile operators like Bharti Airtel, Vodafone Essar, Idea Cellular and Tata Teleservices have been put under audit.