The CPI(M) leader in the Lok Sabha, Basudeb Acharia, has written a letter to the prime minister seeking action against Anil Dhirubhai Ambani Group (ADAG) companies and UBS over alleged misuse of Foreign Currency Convertible Bonds (FCCBs) and External Commercial Borrowing (ECB) norms.
The letter, dated December 17, demands suspension of the retail banking licence granted to UBS in India and also suspension of the appointment of Reliance Capital AMC for managing the provident fund (PF) till completion of investigation against it.
Confirming the contents of the letter, a copy of which is available with Business Standard, Basudeb Acharia said, “Yes I have written this letter and I am yet to get a response from the PM.”
Asked why he wrote the letter against the corporate entity, Acharia said the contents of the letter were self-explanatory. The letter alleges that ADAG companies have been “indulging in laundering funds raised” through FCCBs and ECBs, and using the same in the Indian stock market. When contacted, an ADAG spokesperson said in an e-mail: “The ECB/ FCCB proceeds of Reliance Energy and Reliance Natural Resources have been deployed in bank deposits, money market instruments, etc. in accordance with RBI rules and regulations, and have been repatriated to India way back in April/ May 2007.
No borrowings have been made by us against the said proceeds at any time”. Saying that they fully complied with all rules and regulations, the spokesperson said, “We have not received any enquiries and/or communication from any government agency regarding this matter, and are not aware of the same.” UBS could not be immediately reached for its comments.
The letter written by Acharia also demanded that no fresh approvals be given to any FCCB or ECB issue, and “instruments being made by Reliance Capital AMC into the stock market and deposits being collected put under observation”.
Meanwhile, RSP leader Abani Roy today moved a privilege motion in the Rajya Sabha against Petroleum Minister Murli Deora for what he said “deliberate attempts to mislead Parliament” by making different statements on pricing of natural gas from Reliance Industries’ eastern offshore KG-D6 block in the House and in the Bombay High Court.