Reliance files petition against SEBI for ‘wilful disobedience’ of Supreme Court order

Reliance Industries has filed a plea against the Securities and Exchange Board of India (SEBI) in connection with a two-decade-old stock allotment case. The company has alleged that the regulator was in “wilful disobedience” of the apex court’s order that asked SEBI to give access to certain documents to RIL. 

Meanwhile, SEBI plans to file a review petition against the August 5 order that gave access to relevant documents to RIL. The Mukesh Ambani-led company has also written to the Supreme Court registrar seeking an urgent hearing with Chief Justice of India NV Ramana, according to a report in the Economic Times. 

After the Supreme Court’s order, the company wrote to the regulator twice seeking three documents but SEBI said that it is seeking legal counsel, stated the report. 

Reliance in its letter to the Supreme Court registrar said, “The direction to present the documents forthwith admits no ambiguity, and it is indeed regrettable — though not uncharacteristic — that Sebi, a regulator, is conducting itself in a manner destructive of the rule of law.” It said that SEBI ignoring the orders of the Supreme Court while seeking legal counsel is “an affront to the dignity” of the apex court. 

On August 5, the apex court had set aside an order passed by the Bombay High Court that rejected Reliance’s plea to gain access to documents in the stock allotment case. The Supreme Court said that the regulator has to act fairly and asked it not to circumvent the rule of the law and show fairness. 

The case pertains to SEBI accusing the company of irregularities in its acquisition of its own share between 1994-2000. SEBI had alleged that Reliance 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, and moved the City Civil and Sessions Court in 2020 seeking prosecution of the company. 

Also read: SC allows RIL plea against SEBI for access to documents; says regulator must act fairly