The Rangarajan Committee on oil and gas sector opined that it was the prerogative of the Comptroller and Auditor General of India (CAG) to audit expenses incurred by block operators.
The panel, which submitted its report to the union government recently, suggested that the blocks with low value can be audited by panel of auditors formed by CAG and for high value blocks, the official auditor should audit directly.
The CAG have the power to decide the value of the block that will be audited by it directly, the committee said.
The report suggested shunning the present cost recovery model that allows operators like RIL to first recover all their investment before sharing profits with the government.
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