RELIANCE INDUSTRIES UNDER SCANNER

Supreme Court Scanner on Reliance Industries money laundering charges

26 March 2014 - 

The Supreme Court today asked the government to file a report on the steps it has taken after a Singapore High Commission letter asking for an investigation into alleged investment of Rs 6,500 crore into four RIL group companies by Bio Metrix Marketing and Strasbourg Holdings in Singapore.

In August 2011, the Indian High Commission in Singapore had written a letter to the government asking an investigation into investments made from “a one-room defunct company in Singapore”. During the hearing of the public interest litigation over Reliance KG-D6 case, the bench asked the government to file a report as to what was done pursuant to the High Commission letter.

The bench said, “We want to know what inquiry was done and what was done about the matter after the letter from the Indian High Commission.” Reliance Industries Limited (RIL) had last month (February 27), rejected allegations of making foreign direct investments (FDI) in certain Indian companies through the Singapore-based firm Biometrix.

“The investments by Biometrix were open, transparent and perfectly legitimate transactions in full compliance with the extant regulations. These investments in the Indian companies were made by Biometrix out of loans raised from ICICI Bank, Singapore branch. ICICI Bank has confirmed this fact to the regulators. Regulatory authorities have fully investigated the matter and have found no substance in the allegations of money laundering. The insinuation that this money was from “gold plating” from KG-D6 is completely irresponsible and false,” the statement added.

The RIL statement further added that the allegations made by Prashant Bhushan of Aam Aadmi Party have been previously made in judicial proceedings in the Delhi High Court and have been appropriately responded to.

“Our legal advisor, Atul Dayal, was neither the owner nor director of Biometrix, and Biometrix has filed its balance sheets and income tax returns in each year with the regulatory authorities in Singapore. The allegations that ill-gotten laundered money or profits have either been made or that these have been deposited in the accounts of Mr.Mukesh Ambani through Singapore or otherwise are false and are treated by us with the contempt that they deserve,” the RIL statement said.

Prashant Bhushan appearing for the petitioners Common Cause , today pointed out that this is a company with no assets, no equity and does not file an income tax returns in Singapore claiming to be a small company. Yet,  this huge investment by this company of Rs 6530 crores is the single biggest FDI into India from Singapore.

“The High Commission had stated that all this money has gone into Reliance group of companies in India with the major chunk going to Reliance Gas Transportation Infrastructure Ltd which is a company 100% owned by Mukesh Ambani personally,” he added.