A letter from Reliance, and DNA's reply

The News Minute | July 18, 2014 | 12.22 pm ISTReliance Industries Limited (RIL) as issued a clarification to a report that was published by DNA two days ago.DNA’s report titled “Reliance vs government : Rift widens, or is the Centre buying time?” was published on July 16. It was about an alleged fallout between RIL head Mukesh Ambani and the Prime Minister Narendra Modi-led government. RIL issued a clarification, which the Mumbai-based newspaper has published on the front-page of its July 18 edition, in most cities. DNA has also published its own response to RIL’s clarification.DNA’s July 16 report lists three instances which may possibly indicate an alleged rift between RIL and the Modi government. RIL has objected to these to these points and DNA has responded to RIL.One: The government has not yet raised the prices of gas. The original DNA report says that the company had “hit back” at the government by deferring investment in new fields in the KG D6 Block. Reliance took objection to the use of this term and said the company’s policies on the KG D6 Block had been communicated to the previous government and the current government.Two: The Comptroller and Auditor General report on the 2G scamThe DNA story cited the CAG report which had said that RIL had allegedly rigged conditions in its favour, to obtain the contract for 4G. In its clarification, RIL said that its name had not been mentioned anywhere in the CAG report on 2G.DNA responded to that by saying that the report’s title itself name RIL: “Serious breach of auction conditions by IBSPL and post-auction, undue favour to RIL by permitting voice services on BWA spectrum”. DNA also said that IBSPL was later re-named Reliance Jio Infocomm. This report has been submitted to the Supreme Court in the 2G scam, DNA said. The DNA report also quoted a letter to the Special Investigative Team on black money, written by lawyer and AAP member Prashant Bhushan which accused RIL of money laundering through its 4G contract. Reliance objected to this point in the DNA report, saying: “no responsible person has ever accused Mukesh Ambani of using ‘the 4G contract route to turn black money into white’. This is defamatory.”DNA responded that Bhushan’s complaint had been accepted by the SIT for further investigation. Three: The Securities Apellate Tribunal (SAT) ruling against RILThe DNA report said this is was one cause of a falling out between RIL and the BJP government. The DNA report said that in a dispute between the company and SEBI over insider trading charges made against RIL in 2007, the SAT had ruled against RIL. The DNA report said: “If RIL expected the Modi government to come to its aid that, too, has not happened.” Denying charges of insider trading, RIL took exception to this portion and responded by saying: “To imply that the government has a role in deciding the outcome of an on-going legal case in SAT is an illiterate attack on the prestige of a high institution apart from causing serious damage to the image of RIL.”To this, DNA responded: “The SEBI and SAT cases refer to the 7-year old case, which RIL had sought to “settle”. The Securities Appellate Tribunal (SAT), on July 14, dismissed an appeal by RIL against stock market regulator SEBI. SAT upheld charges of “illegal trading gains”. Earlier, SEBI had refused to settle charges against RIL under the consent mechanism, following an investigation into its activities dating back to 2007. RIL can now move the Supreme Court, but now SEBI is free to invoke the provisions of Fraudulent and Unfair Trade Practices (FUTP) regulations.”