New Delhi, July 09: The Department of Company Affairs has said that Reliance Petroleum had violated the Companies Act by not circulating information about its dealings in shares of Reliance Industries and another group company in its balance sheet for 1994-95.
The inspection of the books of accounts, ordered by the DCA in September last year, concluded that "the company (RPL) has violated provisions of section 211 read with Schedule VI of the Act. No information relating to dealing in shares of RIL and RCL was furnished in the balance sheet circulated amongst the shareholders."

In its submission to the DCA, Reliance Petroleum admitted that "unfortunately, however, a printing error had crept in resulting in omission of one line at the end of Page No. 13 in the printed accounts... This omission is sought to be blown out of proportion by the complainant to say that the company circulated two sets of balance sheets for the year ended 31 March 1995."

Following complaints from BSP MP Raashid Alvi that the RPL had violated the Companies Act and diverted public money (about Rs 1,000 crore) for speculative activities, the DCA had ordered full-fledged inspection of the RPL and limited inspection of five other group companies, including the Reliance Industries on top priority basis.
Bureau Report