CAG Vinod Rai does not meet entities being audited

"CAG does not meet representatives of audited entities when their audit is in progress. Neither was any meeting scheduled by CAG with RIL officials nor had any meeting been sought by them," CAG said in a statement.

The statement was issued in the wake of media reports suggesting that CAG had refused to meet the officials of Reliance Industries (RIL).

The issue deals with the audit of expenditures incurred for the developing gas fields in the Krishna-Godavari (KG) Basin.

The CAG statement further said it is competent to conduct performance audit of Production Sharing Contracts (PSCs) under Section 16 of the CAG's (DPC) Act.

"It has been the consistent stand of CAG that performance audit of PSCs is covered under section 16 of the CAG's (DPC) Act as Profit Petroleum is non-tax revenue credited to the Consolidated Fund of India and such audit would involve examination of all records including those of the operator which are relevant to our audit.

"This provision of CAG's (DPC) Act gives CAG the unfettered right of access to all records required for such audit and would override any conditions sought to be imposed on our audit process," the statement said.

The Principal Audit Office, it added, was in regular touch with the Petroleum Ministry for commencing the audit.

The CAG, however, also clarified that it does not conduct performance audit of private operators.