COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

CBI easy on Reliance in initial report on investments in UTI

The Central Bureau of Investigation probing the investments made by Reliance Industries Limited in various Unit Trust of India schemes, has not recommended the company's prosecution in its initial report to the finance ministry.

Stating this in the Lok Sabha during the question hour, Finance Minister Yashwant Sinha said the government would initiate action once the final picture emerged. The CBI investigation was still incomplete, he added.

Replying to a volley of questions by Dr Subramanian Swamy, the finance minister said that the inquiry into the matter was going on since 1996. The UTI, Life Insurance Corporation and General Insurance Corporation had invested a total of Rs 9.45 billion through private placement in the shares of RIL in 1994.

He said that these shares were purchased at the price of Rs 385 each. The rate of dividend received on these shares was 60 per cent in 1995-96 and 35 per cent in 1997-98.

Replying to a further query, the finance minister said that Reliance had invested Rs 1.73 billion in US-64 and Rs 30 million in US-65 as on March 31, 1996. It had invested Rs 1.3 million in US-64 as on March 31, 1997 and Rs 1.3 million in US-64 as on March 31, 1998.

The UTI had paid dividends of Rs 2 per unit for US-64 scheme and Rs 13.50 per unit for US-65 scheme till June 30, 1996. It had also paid dividend of Rs 2 per unit and Rs 12.50 per unit for US-64 and US-65 schemes respectively till June 30, 1997 and two per unit and Rs 13.50 per unit under US-64 and US-65 schemes till June 30, 1998.

UNI

Business news