Our Bureau

Mumbai, Jan. 21

INVESTMENTS in Reliance Infocomm are in line with the corporate governance norms according to legal opinion sought by Reliance, said Mr Y.P. Trivedi, Independent Director on the Reliance Industries board.

"We sought opinions from the former Supreme Court Chief Justice, Mr S.P. Bharucha, and the former Karnataka High court Chief Justice, Mr M.L. Pendse. And there is no violation of corporate governance norms, and everything is in place," Mr Trivedi, also a Supreme Court advocate, said. The legal opinions were received roughly 10 days ago, he said.

Mr Trivedi, who is also member of the corporate governance committee of the board of RIL, spoke to reporters shortly after the Reliance board meeting, which took on record the company's third quarter results on Friday.

When asked about objections raised by Mr Anil Ambani, RIL's Vice-Chairman and Managing Director, about RIL's investments in Reliance Infocomm, Mr Trivedi said, "As independent directors (Corporate Governance panel), we will discuss whatever comes up. If he (Mr Anil Ambani) writes a letter to the RIL board and the board asks us to take a look at it, we will."

Mr Anil Ambani had objected to RIL's investments in Infocomm through preference shares and had talked of both corporate governance and the issue of whether the investment decisions were arm's length transactions, since Mr Mukesh Ambani is both RIL Chairman and promoter of Reliance Infocomm.

Mr Trivedi said the corporate governance panel has already met twice since it was formed late last month. Mr M.P. Modi and Mr D.V. Kapoor are the other two members of the panel.

"We will ensure that all discussions take place in a transparent manner and are made known to all, if the company authorises so," Mr Trivedi said.

(This article was published in the Business Line print edition dated January 22, 2005)
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