The Hindu Business Line : ONGC, TCS offers: Reliance denies private gain to Mukesh

RELIANCE Industries Ltd (RIL) on Monday said Smart Entrepreneur Solutions Pvt Ltd and Smart Infosolutions Pvt Ltd, which were among the top bidders in the ONGC and TCS public offers, do not belong to its Chairman and Managing Director, Mr Mukesh Ambani.

It said the two companies belonged to Reliance Communications Infrastructure Ltd (RCIL), reportedly the holding company of Reliance Infocomm. However, Mr Ambani and associates are said to hold about 55 per cent stake in RCIL, and RIL the rest.

RIL issued the clarification regarding the ownership of the two companies after a newspaper reported that the two companies belonged to Mr Ambani and that they diverted about Rs 1,600 crore from Reliance Infocomm into the ONGC and TCS public offers.

The report also alleged that the companies repeatedly changed their names and registered offices to hide the money trail. It said the two companies could have made a killing when the shares listed at a large premium on the exchanges.

RIL clarified that RCIL did not borrow from any banks or financial institutions to provide funds to two of its companies for subscribing to the IPO. "In fact, RCIL provided funds from its own sources. It is libelous to say that the money was diverted from Reliance Infocomm to these companies," it said in a release.

It said there is no private gain for Mr Ambani and there is no loss to RIL or its shareholders.

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