ED probing complaints against ADAG firm

ED probing complaints against ADAG firm
PTI
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First Published: Thu, Feb 19 2009. 08 19 PM IST
Updated: Thu, Feb 19 2009. 08 19 PM IST
New Delhi: The government on Thursday informed the Rajya Sabha that Enforcement Directorate (ED) is looking into complaints of FEMA violations by Anil Dhirubhai Ambani Group (ADAG), but no conclusion has been reached.
“Directorate of Enforcement is looking into certain complaints of alleged FEMA contraventions by Anil Dhirubhai Ambani Group. As on date, no conclusions have been arrived at,” minister of state for finance S S Palanimanickam said in a written reply.
Replying to another question pertaining to an ADAG company, Reliance Communications, the government said RBI was inquiring into the observations made by the statutory auditors of the company about the utilisation of funds raised through External Commercial Borrowing (ECB).
Quoting the portion of audit report which is being inquired into by RBI, Minister of state for finance Pawan Kumar Bansal said, “The unutilised money of Rs5,142 has been deposited interest-free with a wholly-owned subsidiary.”
Pointing out that parking of funds with a subsidiary was not permitted, Bansal said, “RBI, therefore, took up the matter with designated AD (authorised dealer) bank in November 2008 for their comments on the observations of the statutory auditors; a reply thereon is still awaited.”
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First Published: Thu, Feb 19 2009. 08 19 PM IST