Share acquisition case: Let RIL access documents, Supreme Court tells Sebi

0
4



The on Friday asked the (Sebi) to give Ltd access to documents used to investigate a share matter, saying it was the “duty of the regulator to act fairly”.


Reliance had moved the apex court after the rejected its petition to get access to the documents relied upon to charge that there were irregularities when the company bought its own shares between 1994 and 2000.


as a regulator has a duty to act fairly. It is not to circumvent the rule of law and has to show fairness. We direct to furnish the document sought by [Reliance],” said the apex court on Friday morning.


The court, earlier this year, had advised the regulator to give Reliance access to the documents but did not issue an order.


Sebi had termed these documents as ‘privileged information’.


The court in May told Sebi that the document must be in favour of the company, or else Reliance would not have asked about it. Sebi should give the copy to the accused, the court said. It observed that once a document is relied upon by the prosecutor, the defendant has a right to its access for a fair trial.


Chartered accountant S Gurumurthy filed a complaint against Reliance in 2002, alleging irregularities in its associate companies, its promoters, including Mukesh Ambani and his wife, Nita; and 100 others in the issue of two preferential placement of non-convertible debentures in 1994.


Acting on the complaint, Sebi moved a lower court in Mumbai in 2020 to initiate prosecution against the company. The court rejected the plea saying there was a delay of 18 years in acting on the complaint and was time-barred.


Reliance then filed a plea in the and requested Sebi to furnish documents regarding the investigation. The High Court rejected the plea and Reliance approached the apex court.


Kirti Dua, partner at ANG Partners, said according to the Supreme Court, the documents of Sebi are not covered under the Indian Evidence Act. “Reliance said these documents were implicating in nature so they should have access to it and now the apex court has allowed it,” she says.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here