CAG Report: BSNL’s Rs. 1,944.92 Cr Loss with Reliance Jio – Anant Ambani’s Rs. 5,000 Cr Wedding Speculated To Be Half Sponsored By BSNL, Reliance Refutes [READ REPORT]

A scathing report by the Comptroller and Auditor General (CAG) has exposed significant lapses by two Public Sector Undertakings (PSUs) under the Department of Telecommunications (DoT)—Bharat Sanchar Nigam Limited (BSNL) and ITI Limited—resulting in a staggering financial loss of ₹1,944.92 crore to the government exchequer. In a twist that has sparked public outrage, this amount is nearly half the estimated ₹5,000 crore spent on Anant Ambani’s lavish wedding, raising eyebrows over how BSNL’s contractual failures, particularly with Reliance Jio Infocomm Ltd (RJIL), inadvertently fueled such extravagance.

Major Losses Tied to Reliance Jio Agreement

The CAG report points to BSNL’s failure to enforce the Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd as the single largest contributor to the financial debacle. Between May 2014 and March 2024, BSNL did not bill RJIL for additional technology used on its shared passive infrastructure, leading to a loss of ₹1,757.76 crore, along with penal interest. This lapse, the report states, reflects a severe lack of oversight and accountability in managing one of the telecom giant’s most critical partnerships.

Additionally, BSNL’s non-adherence to the MSA’s escalation clause with RJIL resulted in a further revenue loss of ₹29 crore (including GST) in infrastructure sharing charges. The CAG criticized BSNL for failing to apply contractual provisions that could have safeguarded its financial interests, raising questions about the PSU’s operational efficiency.

Procurement Blunders and Unutilized Assets

The report also flags BSNL’s deficient planning and deviation from its own Procurement Manual, which led to the injudicious purchase of higher-size Polyethylene Insulated Jelly Filled (PIJF) underground cables. Cables worth ₹80.64 crore remain unutilized, rendering the expenditure wasteful. This procurement misstep underscores systemic issues in BSNL’s resource management and planning processes.

Revenue Leakages with Telecom Infrastructure Providers

In another instance of oversight, BSNL failed to deduct the mandated license fee share from revenue paid to Telecom Infrastructure Providers (TIPs) across 22 of its 28 operational circles. This violation of agreement terms cost the PSU ₹38.36 crore between 2019-20 and 2021-22, further compounding its financial woes.

GST and Billing Irregularities

BSNL’s troubles extend to tax-related lapses as well. The PSU neglected to verify and process bills for duct hiring charges within the statutory period, missing out on GST Input Tax Credit worth ₹5.43 crore. This avoidable loss highlights a lack of diligence in financial management, according to the CAG.

Premature Project Execution and Missing Safeguards

The report also details BSNL’s decision to commence work on a project before receiving full advance payment, as required by the agreement. Coupled with its failure to invoke the Dispute Resolution clause, this led to non-realization of ₹4.80 crore. Furthermore, the absence of a liability clause in the agreement exposed BSNL to a potential interest loss of ₹2.31 crore.

ITI Ltd.’s Role in the Losses

ITI Limited, the other PSU implicated in the report, contributed ₹35.86 crore to the total loss. The CAG found that ITI’s non-adherence to its own manual, undue favor to a vendor, and failure to collect a Contract Performance Guarantee (CPG) resulted in a direct loss of ₹28.93 crore and a blockade of ₹6.93 crore. These findings point to governance failures within ITI, exacerbating the financial strain on the public sector.

A Wedding Connection That Stings

The ₹1,944.92 crore loss has drawn sharp attention due to its proximity to half the reported cost of Anant Ambani’s ₹5,000 crore wedding, an event that captivated headlines for its opulence. Critics are now framing BSNL’s losses as an unintentional public subsidy to private extravagance, given that Reliance Jio—a key beneficiary of BSNL’s lapses—is part of the Mukesh Ambani-led Reliance empire. While no direct link exists between the wedding and BSNL’s finances, the comparison has fueled public discourse on accountability and the misuse of taxpayer money.

Broader Implications

The CAG’s revelations come at a time when BSNL is struggling to regain its footing in India’s competitive telecom market, dominated by private players like Reliance Jio. The reported losses not only highlight operational inefficiencies but also raise concerns about the accountability of PSUs under the Ministry of Communications (MoC). The ₹1,944.92 crore figure underscores the urgent need for reforms in contract management, procurement practices, and financial oversight within these organizations.

Neither BSNL nor ITI has issued an official response to the CAG findings as of now. However, the report is likely to spark debates on the governance of PSUs and their ability to safeguard public funds while competing with private telecom giants like Reliance Jio Infocomm Ltd.

As the government works to revive BSNL and strengthen its role in India’s telecom infrastructure, the CAG report serves as a stark reminder of the challenges ahead. With losses of this magnitude, stakeholders are calling for immediate corrective measures to prevent further erosion of public resources—and to ensure that public funds don’t indirectly bankroll private spectacles.

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