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RIL slips after issuing clarification

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Capital Market
Last Updated : Feb 28 2014 | 11:56 PM IST

Reliance Industries fell 1% to Rs 802.55 at 11:05 IST on BSE after the company clarified on allegations regarding its involvement in money laundering in India.

The company made the clarification on Thursday, 27 February 2014.

Meanwhile, the BSE Sensex was up 76.45 points, or 0.36%, to 21,063.44.

On BSE, so far 76,000 shares were traded in the counter, compared with an average volume of 2.48 lakh shares in the past one quarter.

The stock hit a high of Rs 814 and a low of Rs 801.20 so far during the day. The stock hit a 52-week high of Rs 927.90 on 19 July 2013. The stock hit a 52-week low of Rs 765 on 28 March 2013.

The stock had underperformed the market over the past one month till 26 February 2014, sliding 6.51% compared with the Sensex's 0.69% fall. The scrip had also underperformed the market in past one quarter, falling 3.74% as against Sensex's 2.75% rise.

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The large-cap company has an equity capital of Rs 3231.90 crore. Face value per share is Rs 10.

Reliance Industries (RIL) clarified that allegations have been made that the foreign direct investment (FDI) in certain Indian companies, by Biometrix, a Singapore-based company, are laundered monies invested in India. The allegations are completely false. These false and baseless allegations are being repeatedly made in the media and-in-judicial-proceedings and have been already been responded to, RIL said in a statement.

The allegations made by Prashant Bhushan are highly defamatory, false, irresponsible and devoid of any merit or substance whatsoever. These false allegations have been repeatedly made and their regurgitation in the media is fuelling an orchestrated, politically-motivated campaign against the company, RIL added.

The investments by Biometrix were open, transparent and perfectly legitimate transactions in full compliance with the extant regulations. These investments in the Indian companies were made by Biometrix out of loans raised from ICICI Bank, Singapore branch. ICICI Bank has confirmed this fact to the regulators. Regulatory authorities have fully investigated the matter and have found no substance in the allegations of money laundering. The insinuation that this money was from "gold plating" from KG-D6 is completely irresponsible and false, the company said.

The allegations made by Bhushan have been previously made in judicial proceedings in the Delhi High Court and have been appropriately responded to. The letter of Singapore High Commission referred to by Bhushan forms a part of these proceedings, the firm said.

RIL said its legal advisor Atul Dayal was neither the owner nor director of Biometrix and Biometrix has filed its balance sheets and income tax returns in each year with the Regulatory Authorities in Singapore.

The allegations that ill-gotten laundered money or profits have either been made or that these have been deposited in the accounts of Mukesh Ambani through Singapore or otherwise are false and are treated by us with the contempt that they deserve, the company said.

The allegations relating to surrender of D-29 and D-30 Blocks and transfer of Chaubey are also false and irresponsible, RIL said, adding that it is refraining from making any further comment at this stage since the allegations relating to Biometrix are a part of judicial proceedings.

Earlier this week, RIL had strongly denied all allegations made by Aam Aadmi Party (AAP) against RIL and Mukesh Ambani in their public meeting recently. As stated earlier it is being reiterated that neither RIL nor Mukesh Ambani have or had any illegitimate accounts anywhere in the world, the company said in a statement.

RIL said it has business interests in several countries with turnover of thousands of crore in rupees. As a part of their normal business, these international subsidiaries of RIL deal with several global banks. These accounts are fully compliant with all regulations and are disclosed in their appropriate jurisdictions and in India. The continued tirade of baseless allegations being made by AAP against the company appears to be instigated by vested interests, the company said. RIL had issued this clarification after market hours on Tuesday, 25 February 2014.

RIL's net profit rose 0.2% to Rs 5511 crore on 10.3% growth in net sales to Rs 103521 crore in Q3 December 2013 over Q3 December 2012.

RIL's gross refining margin (GRM) declined to $7.6 per barrel from $7.7 per barrel in Q2 September 2013 and $9.6 per barrel in Q3 December 2012.

RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.

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First Published: Feb 28 2014 | 11:10 AM IST

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