The Ministry of Corporate Affairs (MCA) is examining transactions of Reliance Industries Ltd involving subsidiaries and associated companies, official sources said.
The MCA, it is learnt, is looking into the aspect of the company ‘de-subsidiarising' (ceasing to be a subsidiary of RIL) and ‘re-subsidiarising' (coming into its fold as a subsidiary company) many entities under its fold without informing the Ministry.
Information on subsidiaries
The Ministry may seek information from RIL regarding its 123 subsidiaries, which includes furnishing hard copies of all their audited annual accounts for the 2010-11 financial year.
The information being sought is said to be mainly in view of RIL “not disclosing complete workings of the 123 subsidiaries” to the MCA.
Furthermore, there are allegations of the company “deceptively switching financial transactions…between RIL and 68 companies…..and nine related party associates…”
When contacted, MCA officials declined to comment on the matter.
Draft CAG report
The latest development comes in the wake of a ‘leaked' draft report of the Comptroller and Auditor General (CAG), accusing the Petroleum Ministry of showing undue benefits to RIL in approving the KG Basin development plan.
CAG named RIL, alongside Cairn India Ltd-controlled Rajasthan oil blocks, of having been unduly favoured by the Oil Ministry under Mr Murli Deora, who, incidentally now heads the MCA.
Source- Businessline
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