The Gujarat high court has allowed the meger of Reliance Jamnagar Infrastructure Limited (RJIL) with Reliance Industries Limited (RIL) the 100 per cent holding company of the former. The nod has been given under the Sections 391 to 394 of the Companies Act for Scheme of Arrangement of the nature of amalgamation.
RJIL, a 100 per cent subsidiary of RIL, had sought High Court's permission for merger with the holding company with a view to optimise profitability, administration, efficiency of operation and optimal utilisation of available resources.
Justice Abhilasha Kumari on Monday granted the scheme of arrangement saying that grant of scheme would ultimately benefit the company and would not affect anyone’s rights.
While granting the scheme, the court also dealt with the objections raised by Regional director, ministry of corporate affairs.
The court noted that they were duly taken care off. The court further held that it has the jurisdiction to decide the issue.
RJIL is presently developer and operator a Special Economic Zone (SEZ) in Jamnagar and was into business of infrastructure development. Whereas RIL is India's largest private sector enterprise, with businesses in the energy and materials value chain. It is a Fortune Global 500 Company, with activities spanning to exploration and production of oil and gas, petroleum refining and marketing, petrochemicals and textiles.
Following the merger, entire businesses and the undertaking of RJIL would be transferred to, and vest with, RIL.