Reliance loses court battle in Ahmedabad

Vol 10, PW 4 (15 Jun 06) News in Brief

A court in Ahmedabad has passed an order against Reliance chairman Mukesh Ambani and nine others in a case of conspiracy and cheating in the allotment of Reliance petrol pumps.

On 13th June, the Ahmedabad District Rural Court upheld a complaint from Captain David Ellis who said he paid Reliance Rs5 lakh ($10,500) deposit for the right to operate one of its petrol pumps in Dholka near Ahmedabad. Ellis said Reliance issued him a Letter of Intent to operate for three months in 2004, with the promise of a long-term agreement later.

He said Reliance failed to enter into a firm contract with him and did not refund his deposit, despite repeated reminders, forcing him to file the case in May this year. The court has asked police to investigate the matter under Section 409, 420 (B) and 120 of the Indian Penal Code and arrest any of those against who the complaint has been filed under Section 156.

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