Reliance in spotlight as DCA orders probe

Vol 5, PW 15 (12 Sep 01) News in Brief

India's Ministry of Law, Justice and Company Affairs has ordered an investigation into Reliance Petroleum's link to an alleged share price scam.

In a 4th September letter to the Department of Company Affairs (western region) the ministry conveys the "approval of the central government to carry out a full-fledged inspection under section 209 (A) of the Companies Act 1956 of books of accounts and other records of Reliance Petroleum on top priority basis." Investigating authorities are examining claims that in the early 90s the Ambani family, which controls the company, diverted funds from Reliance Petroleum's public issue to ramp the share price of parent company Reliance Industries.