3 ADAG firms under scanner for violating ECB norms: Govt



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.

PTI