3 ADAG firms under scanner for violating ECB norms: Govt
New Delhi: The government today said three
firms of Anil Ambani group - Reliance Infrastructure, Reliance
Natural Resources and Reliance Communication -- have violated
overseas debt norms.
The matter pertaining to Reliance Infrastructure has been
referred to Enforcement Directorate over non-payment of
penalty and that of RNRL for further probe, also by ED.
In a written reply in Rajya Sabha, Minister of state for
Finance Namo Narain Meena said end-use violations have been
observed by RBI in respect of two external commercial
borrowing transactions by Reliance Infrastructure -- 360
million dollars and 150 million dollars.
The company brought the proceeds raised through the ECBs
to India and kept these invested in debt mutual funds, pending
utilisation for the declared end-use in gross violation of the
existing guidelines, he said.
A penalty of Rs 124.68 crore was imposed on Reliance
Infrastructure, he said, adding that since it did not pay the
penalty in accordance with the rules and provisions of FEMA,
the violations were referred to the Directorate of Enforcement
(DoE) in December, 2008 for adjudication.
Reliance Natural Resources Ltd issued foreign currency
convertible bonds of 300 million dollars for the purpose of
project under the automatic route. As much as 275 million
dollars (Rs 1,127 crore) were brought to India in May, 2007
and were parked in debt mutual funds pending utilisation.