Reliance Industries shares hit by Kejriwal's allegations

MUMBAI Thu Nov 1, 2012 3:38pm IST

1 of 2. Arvind Kejriwal, a social activist and anti-corruption campaigner, works on his laptop after his interview with Reuters in Ghaziabad on the outskirts of New Delhi October 22, 2012.

Credit: Reuters/Mansi Thapliyal

Related Topics

Stocks

   

MUMBAI (Reuters) - Shares in Reliance Industries Ltd(RELI.NS) recover after falling as much as 2.1 percent on Thursday, a day after anti-corruption activist Arvind Kejriwal accused the energy conglomerate of hoarding natural gas and exerting pressure on the government to favour it.

The company denies the allegations.

Kejriwal, whose group India Against Corruption (IAC) has won publicity in India by accusing ruling Congress party chief Sonia Gandhi's son in law Robert Vadra of taking part in shady dealings, said on Wednesday that Reliance has profited from cosy relationships with a string of government ministers.

Those ministers favoured the company in its oil and gas ventures off the Andhra coast, Kejriwal told a crowded news conference in New Delhi on Wednesday.

Reliance Industries, controlled by Mukesh Ambani, India's richest person, said in a statement that the allegations were "devoid of any truth or substance whatsoever".

"Irresponsible allegations made by IAC at the behest of vested interests without basic understanding of the complexities of a project of this nature does not merit a response," Reliance said in a statement late on Wednesday.

Kejriwal's allegations were unlikely to have a long-term impact on Reliance shares, analysts said.

"Reliance Industries is falling because of a knee-jerk reaction to Kejriwal's comments," said Kishore Ostwal, chairman and managing director at equity research firm CNI Research.

While Reliance has long been perceived by many Indians as politically influential, investors say the firm's relationship with New Delhi has recently been fractious as a result of the performance of its flagship gas project on the east coast.

Reliance and its partner BP Plc (BP.L) have blamed technical problems for falling gas production, and have sought permission to charge higher prices to cover spending, but the government has so far refused to approve higher gas fees.

Shares in Reliance ended up 0.2 pct.

(Reporting by Rafael Nam; Additional reporting by Abhishek Vishnoi and Henry Foy; Editing by Daniel Magnowski)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
Ksheitj wrote:
What will Reliance say when Congress increases the Gas price before 2014 the schedule date and thereafter the gas output also increases substantially. This will prove without any doubt that Gas output was stopped to achieve the ultimate motive to pressurise Congress to increase the price to the desired levels to satisfy Mukesh, otherwise why will BP invest a huge amount in those wells which are almost empty.

Nov 01, 2012 12:29pm IST  --  Report as abuse
CommunalAward wrote:
Why no politician is demanding for CBI investigation?

Nov 01, 2012 4:49pm IST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Fuelling Change

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Quarterly Result

Quarterly Result

HDFC Bank net profit up 20 percent, lags estimates.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

China Economy

China Economy

China's growth slowest since global crisis, annual target at risk  Full Article 

Coal Reforms

Coal Reforms

Factbox - India pushes ahead with coal reforms  Full Article 

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide  Full Article 

Airport Accident

Airport Accident

Total CEO de Margerie killed in Moscow business jet accident  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage