Reliance Industries Limited (RIL) has denied any links to a $1.2-billion money-laundering case being probed in the Netherlands.
The allegation was Dutch pipeline company, A Hak, NL, earned $1.2 billion in profit by over-invoicing its services and works rendered to Reliance Gas Transportation Infrastructure Ltd. (RTGIL), now known as East West Pipeline Ltd. (EWPL).
This money was allegedly ‘creamed-off’ to Singapore-based Biometrix Marketing Limited, a company reportedly linked to RIL.
Biometrix is the same firm that the Indian tax authorities are probing for the ₹6,500 crore investments made in firms belonging to RIL or its promoter group in 2007-08. Asked for comments, an RIL spokesperson said, “RIL or any of its subsidiaries neither set up any gas pipeline in 2006, nor have contracts with any Netherlands company for setting up of any gas pipeline. Hence, the report cannot relate to RIL. RIL has always complied with all rules, regulations and applicable laws and any suggestion of impropriety... is emphatically denied.”
RGTIL used to be RIL’s subsidiary when it was granted a licence to set up the 1400-km east-west pipeline connecting Jamnagar to the Krishna Godavari basin.
Later, it was hived off into an ‘independent’ firm controlled fully by Mukesh Ambani and renamed EWPL. A spokesperson for EWPL said, “East West Pipeline was built by a privately owned entity. Promoters’ funds invested in the project were private funds. No public funds were invested and all borrowings from banks, financial institutions and others have been fully repaid by the promoters. We strongly deny any suggestion of any money having been laundered at any stage during the implementation of the project. Suggestion of such impropriety lacks logic and economic rationale and is emphatically denied.”
Last month, Canadian investor Brookfield-led India Infrastructure Trust agreed to buy EWPL for ₹13,000 crore.
“East West Pipeline project was implemented in full compliance with all rules, regulations and applicable laws. All applicable taxes and duties have been duly paid. EWPL has no branches or subsidiaries outside India including Singapore. The East West Pipeline Project was implemented by a consortium of independent contractors from India, China, Russia and the Middle East. A Hak, Middle East was one of the contractors,” said a EWPL statement adding that the Project was completed expeditiously at globally competitive costs which have been benchmarked by reputed independent agencies.
