Reliance Industries scrip falls on CAG’s criticism

Sep 08, 2011 |

IANS

mumbai

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After the nation’s official auditor accused it of violating production sharing contracts on Thursday, the Reliance Industries (RIL) scrip fell 2.12 per cent in intra-day trade at the Bombay Stock Exchange (BSE).

The scrip fell to the intra-day low of Rs 814 around noon, down 2.12 per cent from its previous close at Rs 831.70. It later recovered a bit and was ruling 0.66 per cent down at Rs 826.20. The report by the Comptroller and Auditor General of India said that RIL violated the production-sharing contract with the government in what is called the D6 block and did not relinquish 25 percent of total contract area as required.

The report was tabled in the Lok Sabha on Thursday. It also indicted the Directorate General of Hydrocarbons (DGH), the watchdog for oil and gas exploration, and said it should have stopped Reliance Industries from proceeding on the next phase of production in the light of earlier violation of the contract. RIL, a heavyweight scrip on the BSE, also pulled down the benchmark Sensex as traders stepped on the selling pedal after the auditor's critical remarks.

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