SC allows RIL plea against SEBI for access to documents; says regulator must act fairly
Allowing access to RIL, the apex court said that the regulator has to act fairly. It ruled that the regulator must not circumvent the rule of the law and has to show fairness.
- Aug 5, 2022,
- Updated Aug 5, 2022 12:20 PM IST
The Supreme Court has set aside an order passed by the Bombay High Court that rejected Reliance Industries’ plea to gain access to documents that the Securities and Exchange Board of India (SEBI) had relied upon in an investigation against it.
Allowing access to RIL, the apex court said that the regulator has to act fairly. It ruled that the regulator must not circumvent the rule of the law and has to show fairness. “We allow this and direct SEBI to furnish the document sought by RIL,” it said.
The case pertains to a matter of share acquisition. The conglomerate moved the top court after the Bombay High Court rejected its plea to access documents and clear the air on the allegations against the company. The company was accused of irregularities in an old case of RIL’s acquisition of its own shares between 1994-2000. The irregularities were alleged by S Gurumurthy in 2002.
SEBI had alleged that the Mukesh Ambani-helmed conglomerate had “circuitously funded the acquisition of its own shares”, which is a violation of sections 77 and 77A of the Companies Act, 1956, among others.
The regulator had moved the City Civil and Sessions Court in 2020 seeking prosecution of the company.
RIL had also approached the Bombay High Court seeking the three documents that the regulator depended upon, but the plea was rejected by the court, leading to the present appeal before the Supreme Court.
(With inputs from Kanu Sarda)
Also read: 5G spectrum auctions: Why Reliance Jio's bid for the 700 Mhz band is a masterstroke
The Supreme Court has set aside an order passed by the Bombay High Court that rejected Reliance Industries’ plea to gain access to documents that the Securities and Exchange Board of India (SEBI) had relied upon in an investigation against it.
Allowing access to RIL, the apex court said that the regulator has to act fairly. It ruled that the regulator must not circumvent the rule of the law and has to show fairness. “We allow this and direct SEBI to furnish the document sought by RIL,” it said.
The case pertains to a matter of share acquisition. The conglomerate moved the top court after the Bombay High Court rejected its plea to access documents and clear the air on the allegations against the company. The company was accused of irregularities in an old case of RIL’s acquisition of its own shares between 1994-2000. The irregularities were alleged by S Gurumurthy in 2002.
SEBI had alleged that the Mukesh Ambani-helmed conglomerate had “circuitously funded the acquisition of its own shares”, which is a violation of sections 77 and 77A of the Companies Act, 1956, among others.
The regulator had moved the City Civil and Sessions Court in 2020 seeking prosecution of the company.
RIL had also approached the Bombay High Court seeking the three documents that the regulator depended upon, but the plea was rejected by the court, leading to the present appeal before the Supreme Court.
(With inputs from Kanu Sarda)
Also read: 5G spectrum auctions: Why Reliance Jio's bid for the 700 Mhz band is a masterstroke