Share-Switch Case Ends, Ril Fined Rs 63 Lakh

The court order rings down the curtain on the four-month-long drama over duplicate shares and share switch issue, with no more prosecution proceedings pending against Reliance regarding the 29 complaints filed by the Registrar of Companies.

Reliance, RCS and the company directors have been directed to pay an aggregate amount of Rs 63.96 lakh as compounding fees in respect of all complaints filed by the RoC.

The regional director (western region), Department of Company Affairs, had on October 8 ordered for compounding of offences for an amount of Rs 13.34 lakh in the RIL share switch controversy.

Thipsay yesterday ruled that the CLB had carefully considered the compounding issue before taking the decision. He, however, observed that certain questions did remain unanswered.

 

Meanwhile, Sebi chairman DR Mehta will decide today on the issues raised at the personal hearing of RIL officials that was held a couple of days ago.

The court dwelt at length on whether there was an intention to defraud, and whether the original shareholders (who had lodged the shares for transfer) had come forward with any claims.

The judge reiterated while hearing the Reliance counsels J J Bhatt, S Gupte and Amit Desai that ``there was more to the issue'' which has not yet come to light.

He added, however, that the key issue of `intention to defraud' had

not been substantiated. In his order, he observed, ``No shareholder (who had lodged the shares for transfer) has come forward to complain to any authority. It also appears that the basis for allegations that there was an `intention to defraud' on part of the accused (which is an essential ingredient of the offence) has not been substantiated before the CLB hearing. This is thus a case where the permission to compound the offence should not be refused.''

On one occasion, Thipsay told the RIL counsel,