
The internal committee of the Department of Telecommunications (DoT), appointed to study a special auditor’s report of Reliance Communications (RCOM), has stated that the operator has underreported its revenue by at least Rs 15 billion for financial years 2006-07 and 2007-08. This comprises Rs 8 billion of dealer and distributor margins and Rs 7 billion for value-added services (VAS). However, as per RCOM, the Telecom Disputes Settlement Appellate Tribunal in its August 2007 judgment had settled the issue of distributor margins and VAS. Moreover, since the provision of VAS is not a licensed activity, it should not require the payment of a fee.