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April 17, 2001
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Money > Business Headlines > Report April 17, 2001 |
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BSP charges Ambanis with diverting IPO funds to rig stock marketsBahujan Samaj Party MP Rashid Alvi on Tuesday alleged that funds to the tune of over Rs 15 billion collected by Reliance Petroleum Ltd through a public offer were diverted to stock markets by promoters and privately held Ambani family companies for personal gains but Reliance denied the charges. Alvi released voluminous papers at a press conference in support of his allegations and said he had taken up the issue with Prime Minister Atal Bihari Vajpayee, Finance Minister Yashwant Sinha and Law Minister Arun Jaitley stating misappropriation of public funds and criminal breach of trust was going on since 1994. "Reliance has provided complete information and explanation to all relevant authorities, and reiterates that Reliance has complied with all applicable laws," a Reliance spokesperson said in a statement from Bombay. Alvi said that Reliance Industries had collected Rs 9.34 billion in March 1994 through a public issue but the promoters and family companies diverted Rs 7.89 billion "for playing on the floors of stock exchanges". RIL also diverted significant part of Rs 10.06 billion raised through IPO in 1995, he said alleging this was used to rig the share prices of the company as a result of which financial institutions like UTI and LIC were forced to buy huge quantity of RIL shares. Terming the charges as "campaign of disinformation, falsehoods and untruths" the spokesperson said that this was being 'conducted at the behest of failed and unsuccessful corporate rivals'. Reliance denies charges Meanwhile, a Reliance spokesman, described the allegations as a 'campaign of disinformation, falsehoods and untruths being conducted at the behest of failed and unsuccessful corporate rivals'.' In a faxed message, the company said the reference to events of the early years of the last decade, nearly ten years past, clearly 'demonstrates the desperation of these vested interests, and brings out their frustration at the failure of their continuous efforts to tarnish the reputation of the Reliance group'. UNI & PTI YOU MAY ALSO WANT TO READ:
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