Reliance Industries Clarifies Rs 10 Lakh Order Was Not Fine
Reliance Industries has clarified that a Rs 10 lakh order from the Supreme Court in its dispute over gas supplies to NTPC was not a fine or penalty, but 'costs' payable to the Supreme Court Advocates-on-Record Association.
The company made this statement in response to a letter from stock exchanges seeking clarification on a news report that had stated the Supreme Court had slapped a Rs 10 lakh fine on Reliance Industries for delaying NTPC gas supply suit.
According to the Supreme Court's August 14 order, the appeal filed by Reliance was dismissed with costs quantified at Rs 10 lakhs payable to the Supreme Court Advocates on Record Association. The amount is required to be paid within a period of five weeks from today.
The case originated in a natural gas supply contract dispute dating back to 2005, and the Supreme Court had expressed strong concern over the time taken in the case, stating that it had not progressed much and had been obstructed at every stage.
Reliance Industries said the distinction between costs and a fine or penalty was relevant to its disclosure obligations under securities regulations, and accordingly no disclosure was required to be filed by the company under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.