The Department of Company Affairs (DCA) has sought more details from Reliance Petroleum Ltd (RPL) to complete its investigation into whether the company had misappropriated money raised from the public, as alleged by member of parliament Raashid Alvi.
DCA is also examining whether the promoters of RPL had violated the Companies Act in 1993. Alvi had alleged that RPL used funds raised from the public to rig share prices of group flagship Reliance Industries and thereby indirectly benefit the promoters of the company, the Ambanis.
Alvi had also alleged that as on March 31, 1994, Rs 789 crore of the Rs 934 crore raised by the RPL public issue was misappropriated for the benefit of the promoters and privately-owned companies of the promoters.
"Though we have not yet found any irregularities in the books and other details provided by RPL, we require more details to arrive at a definitive decision. We have already asked the RPL management to provide additional details. We also require more cooperation from RPL to complete the procedure without any delay," a top DCA official told Business Standard.
A Reliance spokesperson said: "RPL is fully co-operatiing with the concerned authorities (DCA) and has submitted all information as required by them.
There is no delay on our part. "
Following instructions from DCA, the Registrar of Companies in Ahmedabad had earlier sought clarifications from the company. The RoC has submitted a report to the regional director of DCA in Mumbai. After collecting information from RPL, DCA, Mumbai, will send a preliminary report to Delhi.
Though DCA has not yet finalised any time frame for this, DCA officials say they hope to send the preliminary report soon. A final decision will be taken only after discussions with the finance and other relevant ministries. Senior DCA officials in Mumbai are understood to have received reminders from their counterparts in Delhi on the report.