Share Acquisition Case: RIL gets relief from Supreme Court, Appeal to get documents from SEBI approved
Reliance Industries has got relief from the Supreme Court in the acquisition case of its shares. The Supreme Court has directed SEBI to hand over some documents sought by RIL to the company. It is alleged that Reliance Industries had committed irregularities in the acquisition of its shares between 1994 and 2000. However, RIL claims that the documents sought will absolve the promoters and the company from these charges. Earlier, the appeal of Reliance Industries was turned down in the High Court. After which the company reached the Supreme Court.
What is RIL's appeal?
In its appeal, RIL had sought certain records of SEBI as well as comments made in the report of former Supreme Court judge BN Srikrishna and former ICAI chief YH Malegam on SEBI's request regarding irregularities. According to the company, it will be clear from these documents that the promoter of the company and the company have not broken any rules. Earlier in January 2019, SEBI had refused to give the documents citing the rules, according to which no accused can ask for information about the case from SEBI.
what is the whole matter?
In the year 2002, the country's leading chartered accountant S Gurumurthy complained against 98 including the promoters of the company alleging irregularities in the preferential placement of two NCDs issued in 1994. Converted to shares holding voting rights. According to him, many irregularities have been found in this process. However, in 2002, the government made it clear in its investigation that because no funds were given by RIL to any party in this, it does not violate the Companies Act. However, in 2011, SEBI said that the promoter had violated the takeover rules.