800 crore or Rs 1,200 crore loss to government due to free offer from No.1 Reliance Jio of Gujarat

25 December 2020
Telecom Telecom, which offers Welcome Telecom, Happy New Year offer and Prime services, has been accused of damaging government revenue since 2017.

Reports came that Reliance Jio Infocomm had reduced its revenue for three consecutive financial years till 2015. Due to which the government charged the license fee. According to the draft audit report, the company earned a total revenue of Rs 63.77 crore by hiding its earnings on foreign currency.

According to a report in Economic Times, the Post and Telecom Director General of Audit in 2017 produced a five-page report.

Telecom companies have to pay a part of their adjusted gross revenue (AGR) to the government as annual license fee. Reliance Jio reportedly underestimated its AGR, forcing the government to pay lower license fees.

The government has lost Rs 800 crore due to the promotional offer.

Recently, Telecom Secretary JS Deepak had asked TRAI to reduce the period of promotional offers made by telecom companies. About 800 crore rupees have been collected from government revenue.

The telecom license fee was Rs 3,975 crore in June, compared to Rs 3,185 crore in December this year. Actually it should have been 4500. Thus, the government suffered a loss of 1300 crores.

The final decision on the tariffs offered by telecom companies is not taken by the Telecom Ministry but by TRAI. (Translated from Gujarati)