The Securities and Exchange Board of India (Sebi) has challenged in the Bombay high court an order under the national Right to Information Act (RTI) to disclose what it did on a complaint against Reliance Industries Ltd (RIL) in the year 2000, on the sale of 120 million shares for the benefit of its promoters.
The order was given by the Central Information Commission, the appellate authority under RTI, on a complaint by
S Gurumurthy of the Swadeshi Jagran Manch “regarding the allotment of shares to the promoters of RIL through preferential allotment to 34 Ambani companies”.
Sebi told CIC that prosecution and adjudication proceedings had to be implemented in the matter and disclosure at this stage would affect the process adversely. “It is admitted by the respondents that the investigation in the matter referred to by the appellant is decidedly over. In the face of it, the claim that its disclosure would impede the process of investigation becomes untenable," the CIC had held.
Sebi had, after nine years of a probe, sought the views of retired judge B N Srikrishna on its report. CIC had also directed Sebi to disclose the opinions, findings and recommendations by Justice Srikrishna on the report and all file notings on the issue.
Sebi filed a petition in the Bombay HC this week, challenging the order. The hearing is on January 10.
The market regulator has said the views of Justice Srikrishna were obtained in a “fiduciary relationship” and could not be disclosed under RTI. It also argued that the decision was given only by the CIC chairman and not by the entire panel, which was required.