Reliance Industries Files Contempt Petition Against SEBI

Reliance Industries Files Contempt Petition Against SEBI

In an unusual but expected action, the Indian Joint Agency, the Reliance Industries, humiliated the petition against Indian obligations and operations, claiming that the Supreme Court’s order was violated in 2011. In August 2022, the Supreme Court summoned Reliance Industries to send three securities and Indian delegations to the reliable industry. The documents relate to a 2011 stock distribution case that has dragged on for more than a decade.

According to a report by The Economics Times, Reliance Industries has alleged in its contempt petition that Sebi willfully violated the order of the Supreme Court of India. The court asked the market regulator to hand over copies of the first and second views of the Justice (retd) PN Srikrishna and YH Malekam report on the alleged illegal allotment of shares in 2002.

The incident related to the case took place in 2002 when a person named S Gurumurthy filed a complaint with SEBI alleging that Reliance Industries had cheated various companies of nearly 120 million shares. It is said that the companies to which those shares were allotted are related to the promoters of multinational companies.

In the complaint filed by the managers and promoters of Atka Industries, it was said that the entire funding of quotas was done by Atka Industries. A complaint received by SEBI in 2002 remained on the shelf for more than nine years before the market regulator decided to issue a show cause notice to the promoters of the Mukesh Ambani-owned company. In a show cause notice sent in February 2011, Sebi alleged that Reliance Industries violated various laws and regulations relating to share buybacks and allotments in India. Nine years later, in 2020, Sebice appealed to the SBI Special Court and demanded that the reliable industry pursue.

Due to the fact that there is a great delay in complaint and initiative, the special court has denied everything that claims the company is a complaint. As the special court ignored its request, SEBI approached the Bombay High Court. Reliance Industries filed a petition in the Bombay High Court seeking access to three key documents related to the case. Therefore, these three documents are the main sources on which the whole case is built.

The Bombay High Court heard all the petitions against the company. The company appealed to the Supreme Court of India against the decision of the Bombay High Court in favor of Reliance. Reliance Industries said it had written to Sebi at least twice in the past few days requesting access to the documents.