Reliance probe report in a week: Govt

The government expects the Registrar of Companies to submit the findings of the probe into the Reliance group companies within a week.

"We will decide the future course of action based on the report," Komal Anand, secretary, company affairs, said on the sidelines of a seminar organised by the Competition Commission of India (CCI).

She refused to give details about the investigation, or the future course of action, but said appropriate steps would be taken. She said the Securities and Exchange Board of India (Sebi) was also looking into the matter.

Anand's comments came within days of the Company Affairs Minister PC Gupta expressing concern on the issue. The minister had said on Monday, "The government is not sleeping. We are concerned with all developments taking place. We have received complaints from Anil Ambani."

Responding to queries on corporate governance, Anand said, "The new companies legislation will incorporate comprehensive provisions on corporate governance, including independent directors."

"The provisions of Clause 49 of the listing agreement will have to be in sync with the new companies law being prepared," she said, in response to a query on whether the new companies law will specify the requirements for independent directors in listed companies.

With the JJ Irani committee report on revamping the company law to be submitted on 31 May, the government is hopeful that the Bill for introducing the new Companies Act would be placed in Parliament in the winter session.

"The Companies Act, 1956 has seen through the last 50 years of corporate India and has served its purpose well. The aim of the new law is to update some of the key provisions and clear up the clutter. Drastic changes in the basic law are not expected," a company affairs official said.

"The amendments to the Competition Act will be placed in Parliament in the monsoon session," Anand said.

Vinod Dhall, member, CCI, while addressing the need for states' involvement in competition-related issues, said 19 state governments had appointed nodal officers to coordinate competition-related issues with the commission.

The competition commission had organised seminars earlier this year.

The seminars asked professionals and traders to begin a dialogue with the community, in order to create awareness, by the time the Competition Act 2002 is amended and CCI becomes functional.

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A serious issue

• Future course of action to be decided once the report of the Registrar of Companies is out
• The Securities and Exchange Board of India is also looking into the matter
• Company Affairs Minister P C Gupta is monitoring developments closely as complaints have come directly from Anil Ambani