The Enforcement Directorate (ED) today informed Delhi High Court it was investigating in London, Dubai and Hong Kong allegations that petrochemical major Reliance Industries Limited (RIL) had carried out financial irregularities. The division bench of chief justice Arijt Pasayat and justice D K Jain asked ED counsel H S Phoolka to give a status report on all investigations being carried out against the RIL and what stages they are at now. The report must be filed by October 17.
The alleged offence relates to criminal violation of customs laws. Containers stuffed with partially oriented yarn (POY) sealed by customs for export purposes were illegally opened and replaced with Masoor Dal which is a banned item. Twelve RIL employees were arrested and released on bail. Since then, there has been no progress. In an affidavit, ED assistant director S A Ali said that the directorate has taken up the matter with a source for service of directives to three non-resident Indians at Dubai. Inquires are also being made at London and Hong Kong about the drafts issued from Cook Island and Hong Kong, accoriding to the affidavit.
Mr Ali said the ED began investigations under the Foreign Exchange Regulation Act (FERA) in April 1996 on the basis of a report from the Central Bureau of Investigation (CBI) against two RIL directors and 12 officials of five banks. RIL directors N H Ambani and Rasiklal Meshwani, the main accused in the case, are now dead. Of the 12 bank officials, eight gave statements while the whereabouts of remaining could not be confirmed. ''The investigations have been completed and showcause notices are being issued,'' Mr Ali said.
Bureau Report